Sri Lanka’s Services exports recorded a new high in 2023
By: Staff Writer
January 31, Colombo (LNW): Sri Lanka’s Services exports recorded a new high in 2023 with a strong rebound whilst shipment of goods lagged amidst challenges as per provisional data released by the export development board yesterday.
As against a 6% decline in 2022, services exports last year shot up by 63% to surpass the $ 3 billion mark. Merchandised exports on the other hand, declined by 9.5% to $ 11.85 billion, statistics from the Export Development Board revealed.
Robust performance by the services sector helped Sri Lanka finish 2023 with $ 14.95 billion in total exports, down marginally by 0.39% from $ 14.99 billion in the previous year.
The highest performance of total exports was $ 15.91 billion in 2018. However, 2023 performance was also far below the original target of $ 18.51 billion.
The services sector also beat the original forecast of $ 2.58 billion for 2023. Merchandise exports target was $ 16 billion.
In 2023, the value of ICT exports is estimated to have increased by 13.2 % to $ 1.26 billion. Construction, and transport and logistics services exports are forecasted to have increased as well, according to the EDB.
Except for tea, spices and concentrates, Electrical and Electronic Components (EEC) and food and beverage, all the other key export sectors including apparel and textiles, rubber and rubber finished products, coconut and coconut-based products and seafood underperformed in 2023.
“We cannot estimate the numbers for 2024 amid the highly volatile internal and global scenario,” the EDB Chairman Dr. Kingsley Bernard said.
He said the EDB in collaboration with the Investment Promotion Ministry has obtained technical support from the International Trade Centre (ITC) based in Geneva to revisit its existing Export Strategic Plan – National Export Strategy (NES).
“The key focus for 2024 is on reviewing the existing NES to align it with contemporary market challenges and harness emerging opportunities to boost exports. The ITC has not yet informed final details regarding the targets but it will soon be announced,” Dr. Bernard added.
Earnings from export of tea, spices and concentrates, electronics and electronic components and food and beverages increased by 4.06 %, 7.42 %, 0.62 % and 0.37 % respectively during the period of January – December 2023 compared, in comparison to the corresponding period of 2022.
Earnings from export of Electrical and Electronic Components (EEC) increased by 0.62 % to $ 486.66 million in the period of January to December 2023 compared to the corresponding period of 2022.
This increase was due to the strong performance in exports of printed circuits (52.37 %), switches, boards and panels (3.78 %) and boilers/ piston engines/ pumps and vacuum pumps (639.88 %) in the period of January to December 2023 compared to the corresponding period of 2022.
Earnings from export of Tea increased by 4.06 % to $ 1,390.9 million in the period of January to December 2023. This increase was mainly due to the strong performance in export of tea packets (10.95 %).
