Economic

Furthermore, export performance in August 2024 increased by 3.1 % compared to July 2024.

The estimated value of services exports for the month of August 2024 was US$ 318.77 Million, increasing 6.49 % over the corresponding period of 2023.

Consequently, total exports for August 2024, including both merchandise and services, were recorded at US$ 1,483.13 million, increasing 4.67 % over the corresponding period of 2023.

Figure I shows Monthly Merchandise export performance from the year 2021 to August 2024.

 

Figure 1: Monthly Merchandise Export Performance 2021-August 2024

Sources: CBSL, Sri Lanka Customs

 Major Exports in August 2024

 

1. Products & Services with Positive Growth (Increases)

Export earnings from Apparel & Textile increased by 17.51 % y-o-y to US $ 511.13 Mn in August 2024 compared to August 2023. Additionally, exports of Apparel & Textile to USA increased by 22.56 % in August 2024 compared to August 2023.

Export earnings from tea, which made up 12% of merchandise exports, increased by 9.11 % y-o-y to US$ 130.54 Mn in August 2024 compared to August 2023. This increase is mainly due to the positive performance in the export of Bulk Tea (5.78%) and Tea packets (11.43%).

Additionally, Tea exports to Iraq and Iran markets, increased by 13.35 % and 114.41 % respectively.

Export earnings from Rubber and Rubber finished products have increased by 29.48 % y-o-y to US$ 103.79 Mn in August 2024, with the positive performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (20.52%) and Industrial & Surgical Gloves (44.33%).

On monthly analysis, export earnings of Coconut based products increased by 38.3 % in August 2024 compared to August 2023. Moreover, export earnings of Coconut kernel products, Coconut fiber products and Coconut shell products increased by 50.15 %, 29.42 % and 18.36 % respectively in August 2024 compared to August 2023.

Moreover, Export earnings from Coconut oil, Desiccated Coconut, Coconut milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 53.99%, 41.34%, 79.58 %, 36.83 % and 92.54 % respectively in August 2024 compared to August 2023.

Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fiber products, increased by 40.4 % to US$ 19.08 Mn in August 2024 in comparison to July 2023.

In addition, export of Activated Carbon, which is categorized under Coconut shell products, increased by 27.93 % to US$ 13.74 Mn in August 2024 in comparison to August 2023.

Export earnings from Spices and Concentrates increased by 8.55 % to US$ 52.04 Mn in the month of August 2024 compared to month of August 2023 mainly due to the strong performance in export of Pepper (31.56%).

Furthermore, the estimated value of ICT exports is expected to increase by 35.76 % to US$ 146.26 Mn in August 2024 when compared to August 2023. In addition, the estimated value of Logistics & transport services is expected to increase by 7.01 % to US$ 146.37 Mn respectively in August 2024 when compared to August 2023.

1. Products & Services with Negative Growth (Decreases)

 

Export earnings from Food & Beverages have decreased by 11.71 % y-o-y to US$ 40.7 Million in August 2024, with the poor performance in exports of Processed food (-55.94%).

Export earnings from the Electrical & Electronics Components decreased by 5.7 % y-o-y to US$ 38.87 Mn in August 2024 with poor performance in exports Other Electrical & Electronic Products (-12.01 %).

Furthermore, export of Other Export crops decreased by 51.76 % in August 2023 compared with August 2024.

Export earnings from Seafood decreased by 21.52 % to US$ 13.86 Mn in August 2024 compared to August 2023. This decrease was mainly due to the poor performance in the export of frozen fish (-21.78%) and Shrimps (-49.79%).

In parallel, export earnings from Ornamental fish decreased by 15.84 % to US$ 1.7 Mn in August 2024 compared to August 2023.

Exports during the period of January – August 2024

During the first eight months of 2024, cumulative merchandise exports increased by 5.37 % to US$ 8,440.02 million compared to the same period in 2023.

The estimated value of services exports is expected to increase by 7.58% to US$ 2,246.77 Mn during the first eight months of 2024 when compared to the corresponding period of 2023.

Consequently, total exports for the first eight months of 2024, including both merchandise and services, were recorded at US$ 10,686.79 Million, an 5.82 % increase over the same period of 2023.

1. Products & Services with Positive Growth (Increases)

Earnings from export of Apparel, Tea, Rubber products, Coconut products and Spices & Concentrates increased by 1.28 %, 8.26 %, 11.52 %, 20.85 % and 3.56% respectively during the first eight months of 2024 in comparison to the corresponding period of 2023.

Earnings from export of Apparel & Textile have increased by 1.28 % to US$ 3,358.05 Mn during the period of January to August 2024 compared to the same period in 2023. Further, earnings from export of Apparel increased by 2.31 % in January to August 2024.

Earnings from export of Tea increased y-o-y by 8.26 % to US$ 942.26 Mn in the period of January to August 2024. This increase was mainly due to the strong performance in export of Bulk Tea (15.16 %) & Tea Packets (3.26%).

In addition, export earnings from Rubber & Rubber finished products increased by 11.52 % to US$ 679.43 Mn in January – August 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (17.08 %) and Pneumatic & Retreated Rubber Tyres & Tubes (10.56 %).

Export earnings of Coconut & Coconut based products increased by 20.85 % to US$ 563.99 Mn during January – August 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – August 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (24.21 %), Desiccated Coconut (42.11 %), Coconut Milk Powder (43.09 %), Coconut Cream (39.73 %), Liquid Coconut Milk (29.38 %), Cocopeat (19.66 %) and Activated Carbon (16.30 %).

In addition, export earnings from Spices and Concentrates increased y-o-y by 3.56 % to US$ 274.08 Mn in the period of January to August 2024. This increase mainly driven by the strong performance in exports of Pepper (78.66 %). Pepper exports to India increased 28.11 % in the first eight months of 2024 compared to the corresponding period of previous year.

Export earnings from Food & Beverages have increased by 8.2 % y-o-y to US$ 315.69 Million in the period of January to August 2024, with the positive performance in exports of Processed food (27.29 %).

Furthermore, the estimated value of ICT exports is expected to increase by 17.04 % to US$ 947.46 Mn during the period of January to August 2024 when compared to the corresponding period of 2023.

1. Products & Services with Negative Growth (Decreases)

Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 16.42 % to US$ 282.37 Mn in the period of January to August 2024 compared to the corresponding period of 2023. This decline was primarily driven by poor performance in exports of Electrical Transformers (-19.25 %), Insulated wires (-9.28 %) and Other Electrical & Electronic Products (-22.34 %).

Further, export earnings from Seafood decreased by 1.65 % to US$ 164.54 Mn during the period of January to August 2024 compared to year 2023 due to the poor performance in Frozen Fish (-3.04 %) and Shrimps (-25.63%).

Export earnings from Ornamental fish decreased by 2.12 % to US$ 16.55 Mn in the first eight months of 2024 compared to the same period of 2023.

Table 1 shows the comparison of Export performance during the month of August 2024 and the period of January to August 2024 compared to 2023.

Table 1: Comparison of Sector-wise Export Performance

                                                                                                              Values in US$ Mns

Exports of Goods & Services	Jan-Aug 2023	Jan-Aug 2024	% Growth (23-24)	Aug  2023	Aug 2024	% Growth (23-24)
Apparel & Textile	3,315.56	3,358.05	1.28	434.98	511.13	17.51
Tea	870.37	942.26	8.26	119.64	130.54	9.11
Rubber-based	609.26	679.43	11.52	80.16	103.79	29.48
Coconut-based	466.67	563.99	20.85	63.89	88.36	38.30
Diamond, Gems & Jewelery	266.56	214.29	-19.61	37.64	25.43	-32.44
Electronics & Electronic   Components	337.85	282.37	-16.42	41.22	38.87	-5.70
Spices and Concentrates	264.65	274.08	3.56	47.94	52.04	8.55
Processed Food & Beverages	291.77	315.69	8.20	46.10	40.70	-11.71
Seafood	167.30	164.54	-1.65	17.66	13.86	-21.52
Ornamental Fish	16.91	16.55	-2.13	2.02	1.70	-15.84
Vegetables	18.95	19.37	2.22	2.12	2.11	-0.47
Fruits	28.79	27.08	-5.94	3.56	3.84	7.87
Other Export Crops	61.68	46.39	-24.79	11.38	5.49	-51.76
Flowers & Foliage	9.87	9.23	-6.48	0.95	0.98	3.16
Boat Building	67.15	24.91	-62.90	54.44	0.31	-99.43
Petroleum Products	267.59	274.87	2.72	23.56	28.47	20.84
Others	949.17	1,226.92	29.26	131.34	117.74	-10.35
Total Merchandize Exports	8,010.10	8,440.02	5.37	1,118.60	1,165.36	4.18
ICT/ BPM	809.53	947.46	17.04	107.73	146.26	35.76
Construction	205.10	146.44	-28.60	50.40	18.84	-62.62
Financial Services	40.62	43.60	7.32	4.42	7.30	64.99
Transport & Logistics	1033.30	1109.27	7.35	136.79	146.37	7.01
Total Services Exports	2088.56	2246.77	7.58	299.35	318.77	6.49
Total Exports	10,098.7	10,686.8	5.82	1,418.0	1,484.1	4.67

Sources: CBSL, Sri Lanka Customs

 

Sri Lanka’s Export Performance in Major Markets

 

Among Sri Lanka's top 10 export markets, USA, UK, India, Germany, Netherlands, Canada and China markets showed positive growth in the month of August 2024 and the cumulative period from January to August 2024, compared to the corresponding periods in 2023.

Furthermore, United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 19.37 % to US$ 300.98 Mn in August 2024 compared to August 2023. In parallel, exports to United States of America in the cumulative period of January to August 2024 increased by 3.58 % to US$ 1,939.76 Mn compared to the corresponding periods in 2023.

Exports to the United Kingdom increased by 19.35 % to US$ 86.54 Mn in August 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 7.5 % to US$ 613.56 Mn in cumulative period of January to August 2024 compared to the corresponding period in 2023.

Table 2 shows the comparison of Merchandise export performance of top 15 export markets during the month of August 2024 and the period of January to August 2024 compared to 2023.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations

Values in US$ Mns

	Destination	Jan-Aug 2023	Jan-Aug 2024	% Growth (23-24)	Aug  2023	Aug 2024	% Growth (23-24)
1	United States	1872.70	1939.76	3.58	252.13	300.98	19.37
2	United Kingdom	570.76	613.56	7.50	72.51	86.54	19.35
3	India	575.92	577.47	0.27	82.05	85.80	4.57
4	Italy	444.86	395.69	-11.05	63.63	57.80	-9.16
5	Germany	396.30	430.01	8.51	46.40	69.72	50.26
6	United Arab Emirates	254.55	233.87	-8.12	32.98	27.48	-16.68
7	Netherlands	224.96	253.28	12.59	27.85	38.41	37.92
8	France	227.06	178.49	-21.39	74.81	27.35	-63.44
9	Canada	206.90	219.13	5.91	27.16	35.60	31.08
10	China	161.69	169.86	5.05	19.99	21.38	6.95
11	Australia	152.38	161.77	6.16	21.77	22.34	2.62
12	Belgium	150.76	154.58	2.53	18.25	23.85	30.68
13	Turkey	134.95	94.99	-29.61	22.83	12.92	-43.41
14	Japan	130.83	115.83	-11.47	15.93	14.57	-8.54
15	Switzerland	128.46	116.92	-8.98	15.59	15.95	2.31
	Others	2377.02	2784.81	17.16	324.72	324.67	-0.02
	Total	8,010.10	8,440.02	5.37	1,118.60	1,165.36	4.18

Sources: CBSL, Sri Lanka Customs

 

Exports to FTA Partners (India & Pakistan)

1. August 2024

In August 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a modest increase of 0.13 % to US$ 93.32 Mn compared to August 2023. Specifically, exports to India increased by 4.57 % while exports to Pakistan decreased by 32.56 % in August 2024 compared to August 2023.

The positive performance of India was driven by higher exports of Pepper and Animal Feed, while Pakistan's negative performance was led by decreased exports of Other Textile Articles and Betel leaves.

1. January – August 2024

Exports to India & Pakistan accounted for 6.8 % of total merchandise exports increased by 0.29 % to US$ 629.44 Mn during the period of January to August 2024 compared to the corresponding period of previous year.

Exports to India and Pakistan increased by 0.27% and 0.46% respectively during the period of January to August 2024 when compared with the corresponding period in 2023.

The positive export performance of India was driven by higher export of Pepper (84.72 %). Meanwhile, increased exports to Pakistan were led by increased exports of Other Products of Base Metal.

Sri Lanka’s Export Performance in Regions

 

Table 3 shows the comparison of region wise exports during the month of August 2024 and the period of January to August 2024 compared to 2023.

Table 3: Comparison of Region wise Merchandise Export Performance

Values in US$ Mns

Region	Jan-Aug 2023	Jan-Aug 2024	% Growth (23-24)	Aug  2023	Aug 2024	% Growth (23-24)
United States	1872.70	1939.76	3.58	252.13	300.98	19.37
European Union (EU) excluding UK	1829.15	1815.49	-0.75	286.47	281.77	-1.64
South Asia	827.18	872.47	5.48	118.13	124.98	5.80
ASEAN	687.49	664.02	-3.41	90.40	84.54	-6.48
CIS Countries	215.65	203.62	-5.58	25.22	34.11	35.25
African Countries	219.41	241.85	10.23	34.75	30.58	-12.00
Middle East Countries (excl. Cyprus & Egypt)	165.51	186.45	12.65	19.36	21.43	10.69
Others	2193.01	2516.36	14.74	292.14	286.97	-1.77
Total Merchandise Exports	8,010.10	8,440.02	5.37	1,118.60	1,165.36	4.18

Sources: CBSL, Sri Lanka Customs

Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, decreased by 1.64 % y-o-y in August 2024. In parallel, exports to EU decreased by 0.75 % during the cumulative period of January to August 2024.

Exports to the top five EU markets were recorded as; Germany US$ 430.01 Mn (increased by 8.51 %), Italy US$ 395.69 Mn (decreased by 11.05%), Netherlands US$ 253.28 Mn (increased by 12.59%), France US$ 178.49 Mn. (decreased 21.29 %) and Belgium US$ 154.58 Mn (increased by 2.53%) during the cumulative period of January to August 2024 in comparison to the corresponding period in 2023.

Policy & Strategic Planning Division