Sri Lanka’s Merchandise exports surpassed US$ 1 billion mark in July 2023

August 29, 2023

Sri Lanka’s Export Performance surpassed the US$ 1 billion mark in July 2023, according to the Export Development Board (EDB).

As per the provisional data released by Sri Lanka Customs, merchandise exports increased by 2.18 % to US$ 1,027.2 Million in July 2023 compared to June 2023.

The EDB stated that, however, it is an 11.79 % decrease when compared to the value recorded in July 2022.

This decline in merchandise exports is due to the reduced demand shown in export products, especially in Apparel and textiles, Rubber and rubber-based products, and Coconut and coconut-based products, it added.

Full EDB report:

Major Exports in July 2023

Products & Services with Positive Growth (Increases)
Export earnings of Coconut kernel products and Coconut fibre products increased by 3.95 % and 0.92 % respectively in July 2023 compared to July 2022.

Export earnings from Coconut Milk Powder, Coconut cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 41.64 %, 23.05% and 10.16% respectively in July 2023 compared to July 2022.

Being the largest contributor to the coconut-based sector, Coco Peat, Fiber Pith and moulded products which are categorized under the Coconut fibre products, increased by 1.99% to US$ 15.35 Mn in July 2023 in comparison to July 2022.

In addition, export earnings from Spices and Essential Oils increased by 10.68 % to US$ 37.53 Mn in the month of July 2023 compared to the month of July 2022 with a strong performance in the export of Pepper (222.27%).

Moreover, export earnings from Ornamental fish increased by 32.35 % to US$ 1.80 Mn in July 2023 compared to July 2022.

The value of ICT exports is estimated to increase by 45.5 % to US$ 132.25 Mn in July 2023 compared to July 2022. In addition, the value of Transport and logistics services exports is estimated to increase by 26.45 % in July 2023 compared with July 2022.

Products & Services with Negative Growth (Decreases)
Export earnings from Apparel & Textiles have decreased by 22.28 % y-o-y to US$ 427.48 Million in July 2023 compared to July 2022.

In addition, Export earnings from tea which made up 12% of merchandise exports, decreased by 1.97 % y-o-y to US$ 115.2 Mn in July 2023 compared to July 2022. Earnings from export of Tea packets decreased by 1.93 % to US$ 55.49 Mn.

Export earnings from Rubber and Rubber Finished products have decreased by 11.13% y-o-y to US$ 79.31 Million in July 2023, with negative performance in exports of Pneumatic and retreated Rubber Tyres and tubes (-5.76 %) and Industrial and surgical Gloves of Rubber (-25.08%).

In addition, export earnings from the Electrical & Electronics Components decreased by 1.04 % y-o-y to US$ 40.82 Mn in July 2023 with poor performance in exports of Electrical Transformers (-32.13 %).

Export earnings from Seafood decreased by 16.46 % to US$ 17.25 Mn in July 2023 compared to July 2022. This decrease was mainly due to the poor performance in the export of shrimp (-70.51%) and Frozen fish (-4.27%).

On monthly analysis, export earnings of Coconut-based products decreased by 5.67 % in July 2023 compared to July 2022. Moreover, export earnings of Coconut shell products decreased by 31.14 % to US$ 11.52 Mn in July 2023 compared to July 2022. Earnings from Activated Carbon, which is categorized under the Coconut shell products decreased by 30.37 % to US$ 10.64 Mn in July 2023 compared to July 2022.

Exports during the period of January – July 2023

For the period of January to July 2023, overall merchandise exports decreased by 10.26 % to US$ 6,898.34 Million compared to the corresponding period of 2022.

Products & Services with Positive Growth (Increases)
Earnings from the export of Tea, Spices and Concentrates, Gems & Jewellery and Electronics & Electronic Components increased by 8.03 %, 11.57 %, 19.06 % and 10.0 % respectively during the period of January – July 2023 compared with the corresponding period of 2022.

Earnings from the export of Tea increased by 8.03 % to US$ 750.72 Mn due to the increase of all the subcategories of the tea sector except Bulk Tea and Tea Bags. Earnings from Tea packets, Instant Tea, Green Tea and Other Tea increased by 13.5 %, 44.71 %, 57.65% and 48.41% in the period of Jan-July 2023.

In addition, export earnings from Spices and Essential Oils increased y-o-y by 11.57 % to US$ 216.73 Mn in the period of January to July 2023. Export earnings from Cloves increased y-o-y by 247.25 % to US$ 35.94 Mn in the period of January to July 2023.

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 10.0 % to US$ 296.58 Mn in the period of January to July 2023 compared to the corresponding period of 2022.

Earnings from the export of Printed Circuits, Switches/ Boards and panels, Boilers/ Piston Engines/ Pumps & Vacuum Pumps and Other Electrical and electronic Products increased by 49.86 %, 13.28% and 827.71 % respectively in the period of January to July 2023 compared to the corresponding period of 2022.

The value of ICT exports is estimated to increase by 17.78 % to US$ 793.8 Mn in the first seven months of 2023 compared to the corresponding period of 2022. In addition, Construction and Financial services exports are estimated to increase by 130.21 % and 37.77 % respectively in the period of January to July 2023 compared with the corresponding period of 2022.

Products & Services with Negative Growth (Decreases)
Earnings from the export of Apparel and textiles decreased by 18.10 % to US$ 2,880.61 Mn during the period of January to July 2023 compared to the same period of 2022. The export of Apparel declined by 18.98 % and the export of Textiles declined by 7.64 % from January to July 2023.

In addition, export earnings from Rubber and rubber finished products decreased by 12.67 % to US$ 529.08 Mn in January – July 2023 compared with the same period of 2022 attributed to lower exports of Industrial and Surgical Gloves of Rubber (-26.49 %) and Pneumatic & Retreated Rubber Tyres & Tubes (-6.02 %).

For the period of January to July 2023, export earnings from Coconut and coconut-based products decreased by 19.68 % to US$ 402.80 Mn from the same period last year. Earnings from all the major categories of Coconut-based products decreased in the period of January – July 2023 compared with the corresponding period of 2022 due to the poor performance in export of Coconut Oil (-24.96 %), Desiccated Coconut (-35.75%), Coconut Milk Powder (-12.37 %), Coconut Cream (-21.13 %), Liquid Coconut Milk (-12.28 %), Cocopeat (-16.61 %) and Activated Carbon (-16.81 %).

Further, export earnings from Seafood decreased by 8.10 % to US$ 149.63 Mn during the period of January to July 2023 compared to the year 2022 due to the poor performance in Frozen Fish (-6.74 %), Fresh fish (-5.93 %) and Shrimps (-38.02%).