Sri Lanka's exports rebound after relaxation of lockdown measures

Earnings from merchandise exports rebounded in June 2020 to US $ 906.02 Mn as per the Customs statistics, with the export sector progressively commencing actions following the relaxation of lockdown measures and the recovery of both domestic and global supply and demand chains to some extent, the Export Development Board said.

“The bounce is certainly back in exports which has now become the breadwinner for Sri Lanka's favourable trade balance. Exports have become a national priority, now more than ever, it is certainly impressive to see a strong V shaped recovery in the export sector, comparatively to the lowest point in April 2020, exports are up 327%. I thank the entire export community for serving the national economic needs at our most vulnerable time and we at the EDB stand ready to serve our export community,” EDB Chairman Prabhash Subasinghe said.

 

Export Earnings from Merchandise in June 2020 increased by 50.4% compared with the value recorded in May 2020. However, in comparison to June 2019, earnings from merchandise exports declined by 16.42%.

 

 

Export earnings from Apparel & Textiles increased 83.72% to US$ 402.04 Mn during the month of June 2020 compared with US$ 218.83 Mn recorded in May 2020. However, a 20.22% decline was recorded in June 2020 in comparison to June 2019.

Export earnings from tea increased as both values (6.14%) and volumes (4.52%) increased in June 2020 compared with May 2020. In addition, export earnings from tea recorded 1.55% increase in June 2020 in comparison to June 2019

Earnings from all the major categories of Coconut based products increased in June 2020 compared with June 2019 due to the improved performance in export of Coconut Oil, Cocopeat & Activated Carbon.

In addition, Export earnings from Rubber & Rubber finished products increased by 34.58% to US$ 68.89 Mn during the month of June 2020 compared with May 2020. With the poor performance recorded in the tyre sector, Export of Rubber & Rubber finished products decreased by 14.74% during the month of June 2020 compared with the same month in the previous year.

Spices and Seafood exports increase YoY

Export earnings from Spices and Essential Oils increased significantly in June 2020 compared with May 2020 as the growth in cinnamon (81.7%), pepper (84.78%), nutmeg and mace (106.67%) and essential oils (22.75%). In parallel export earnings from Spices and Essential Oils increased by 29.96% in June 2020 in comparison to June 2019.

Earnings from seafood increased by 13.7% to US$ 24.32 Mn in June 2020 in comparison to US$ 21.39 Mn recorded in June 2019 and also increased by 110.93% in June 2020 compared with May 2019 due to the better performance of export of frozen fish.

 

Moreover, led by a higher demand for personal protective equipment (PPE) such as face masks, protective suits, surgical gloves, etc., earnings from exports of Apparel & Textiles and Rubber & rubber-based products grew significantly during the month of June 2020. PPE related exports recorded US$ 106.46 Mn in June 2020.

When considering the disaggregated level, Exports of Rubber Gloves (Industrial & Surgical), Liquid Coconut Milk, Cocopeat, Made-Up Textile Articles, Areca Nuts, Coconut Cream, Cinnamon, Pepper, Essential Oils, Frozen fish, Lentils and Plastic Gloves recorded positive growth rates, while other sectors such as Rubber Products (-14.74%), Food & Beverages (-8.36%), Electronics & Electronic Components (-6.28%) and Petroleum Products (-7.98%) recorded negative growth rates during the month of June 2020 compared with the month of June 2019.