SL’s August exports show strong growth, led by key sectors

By: Isuru Parakrama

October 01, Colombo (LNW): Sri Lanka’s export performance in August 2024 saw notable growth, with merchandise exports rising by 4.18 per cent year-on-year, reaching $1,165.4 million, according to provisional data from Sri Lanka Customs.

This increase was driven by key sectors such as apparel, textiles, tea, rubber-based products, coconut products, and spices. The strong performance was complemented by a 3.1 per cent rise compared to July 2024, showcasing consistent upward momentum.

In addition to merchandise, the services sector performed strongly, with estimated export earnings for August reaching $318.77 million, a 6.49 per cent increase from the same period in 2023.

Overall, combined merchandise and services exports for August 2024 totalled $1,483.13 million, reflecting a 4.67 per cent growth from the previous year.

Tea exports played a crucial role, contributing 12 per cent of merchandise exports. Earnings from tea increased by 9.11 per cent year-on-year to $130.54 million, bolstered by strong sales of bulk tea and tea packets, with notable market growth in Iraq and Iran, where exports surged by 13.35 per cent and 114.41 per cent, respectively.

Rubber and rubber-finished products saw significant growth, with a 29.48 per cent year-on-year increase, bringing in $103.79 million in August.

Coconut-based products also showed remarkable performance, with export earnings rising by 38.3 per cent.

Additionally, activated carbon, derived from coconut shells, saw an impressive 27.93 per cent increase, generating $13.74 million.

Spices and concentrates continued their steady climb, growing by 8.55 per cent in August, with pepper exports experiencing a substantial 31.56 per cent surge.

The country’s ICT sector also saw a considerable boost, with export earnings estimated to have risen by 35.76% to $146.26 million.

For the first eight months of 2024, cumulative merchandise exports increased by 5.37 per cent to $8,440.02 million. Services exports for the same period are expected to have grown by 7.58 per cent to $2,246.77 million, bringing the total combined exports to $10,686.79 million, a 5.82 per cent rise compared to 2023.

The growth in key export sectors has been consistent throughout 2024. Apparel exports rose by 1.28 per cent, tea by 8.26 per cent, rubber products by 11.52 per cent, coconut products by 20.85 per cent, and spices by 3.56 per cent in the first eight months of the year.

Meanwhile, ICT exports are expected to have grown by 17.04 per cent during this period.

However, not all sectors witnessed positive trends. Earnings from electrical and electronic components (EEC) decreased by 16.42 per cent to $282.37 million, reflecting challenges within this sector.

Sri Lanka’s major export markets, including the US, UK, India, Germany, and China, showed positive growth. Exports to India rose by 4.57 per cent in August, driven by higher shipments of pepper and animal feed.

Exports to India and Pakistan collectively accounted for 8.4 per cent of total merchandise exports during this period, highlighting the region’s growing importance to Sri Lanka’s trade landscape.