As per the provisional data released by the Sri Lanka Customs, the merchandise export performance in September 2024 amounted to US$ 937.95 million, recorded a decline of 3.49 % compared to the month of September 2023. This was mainly due to the decrease in earnings from export of Tea, Rubber based products, Electrical & Electronics and Seafood.
The estimated value of services exports for the month of September 2024 was US$ 329.89 Million, increasing 6.08 % over the corresponding period of 2023.
Consequently, total exports for September 2024, including both merchandise and services, were recorded at US$ 1,267.84 million, decreasing 1.17 % over the corresponding period of 2023.
Figure I shows Monthly Merchandise export performance from the year 2021 to September 2024.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in September 2024
a) Products & Services with Positive Growth (Increases)
Export earnings from Apparel & Textile increased by 15.71 % y-o-y to US $ 418.68 Mn in September 2024 compared to September 2023. Additionally, exports of Apparel & Textile to USA increased by 36.87 % in September 2024 compared to September 2023.
On monthly analysis, export earnings of Coconut based products increased by 10.36 % in September 2024 compared to September 2023. Moreover, export earnings of Coconut kernel products, Coconut fiber products and Coconut shell products increased by 9.29 %, 9.39 % and 814.8 % respectively in September 2024 compared to September 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 5.75%, 14.03%, 3.91 %, 11.76 % and 26.76 % respectively in September 2024 compared to September 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 14.27 % to US$ 16.42 Mn in September 2024 in comparison to September 2023.
In addition, export of Activated Carbon, which is categorized under Coconut shell products, increased by 21.05 % to US$ 13.17 Mn in September 2024 in comparison to September 2023.
Export earnings from Spices and Concentrates increased by 26.39 % to US$ 48.04 Mn in the month of September 2024 compared to month of September 2023 mainly due to the strong performance in export of Pepper (43.91%) and Cinnamon (16.34%).
Export earnings from Food & Beverages have increased by 8.78 % y-o-y to US$ 33.21 Million in September 2024, with the positive performance in exports of Processed food (69.41%).
Furthermore, the estimated value of ICT exports is expected to increase by 28.66 % to US$ 150.28 Mn in September 2024 when compared to September 2023. In addition, the estimated value of Logistics & transport services is expected to increase by 24.94 % to US$ 158.4 Mn in September 2024 when compared to September 2023.
b) Products & Services with Negative Growth (Decreases)
Export earnings from tea, which made up 12% of merchandise exports, decreased by 2.44 % y-o-y to US$ 117.03 Mn in September 2024 compared to September 2023. This decrease is mainly due to the negative performance in the export of Bulk Tea (-10.26%).
Export earnings from Rubber and Rubber finished products have decreased by 4.1 % y-o-y to US$ 79.5 Mn in September 2024, with the negative performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-12.19%).
Export earnings from the Electrical & Electronics Components decreased by 27.73 % y-o-y to US$ 28.1 Mn in September 2024 with poor performance in exports Other Electrical & Electronic Products (-25.41 %).
Furthermore, export of Other Export crops decreased by 73.57 % in September 2024 compared with September 2023 due to the negative performance in export of Arecanut (-85.91%).
Export earnings from Seafood decreased by 42.18 % to US$ 14.83 Mn in September 2024 compared to September 2023. This decrease was mainly due to the poor performance in the export of frozen fish (-38.88%), Fresh fish (-48.96%) and Shrimps (-43.56%).
In parallel, export earnings from Ornamental fish decreased by 14.23 % to US$ 2.17 Mn in September 2024 compared to September 2023.
Exports during the period of January – September 2024
During the first nine months of 2024, cumulative merchandise exports increased by 5.07 % to US$ 9,437.11 million compared to the same period in 2023.
The estimated value of services exports is expected to increase by 8.03 % to US$ 2,577.22 Mn during the first nine months of 2024 when compared to the corresponding period of 2023.
Consequently, total exports for the first nine months of 2024, including both merchandise and services, were recorded at US$ 12,014.33 Million, an 73.24 % increase over the same period of 2023.
a) Products & Services with Positive Growth (Increases)
Earnings from export of Apparel, Tea, Rubber products, Coconut products and Spices & Concentrates increased by 2.7 %, 6.97 %, 9.64 %, 19.57 % and 6.41 % respectively during the first nine months of 2024 in comparison to the corresponding period of 2023.
Earnings from export of Apparel & Textile have increased by 2.7 % to US$ 3,478.91 Mn during the period of January to September 2024 compared to the same period in 2023. Additionally, exports of Apparel & Textile to USA and UK increased by 4.96 % & 8.44% respectively in the period of January to September 2024 compared to the corresponding period of 2023.
Earnings from export of Tea increased y-o-y by 6.97 % to US$ 1,059.29 Mn in the period of January to September 2024. This increase was mainly due to the strong performance in export of Bulk Tea (12.0 %) & Tea Packets (3.62%).
In addition, export earnings from Rubber & Rubber finished products increased by 9.64 % to US$ 758.91 Mn in January – September 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (17.12 %) and Pneumatic & Retreated Rubber Tyres & Tubes (7.79 %).
Export earnings of Coconut & Coconut based products increased by 19.57 % to US$ 634.93 Mn during January – September 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – September 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (21.61 %), Desiccated Coconut (37.97 %), Coconut Milk Powder (37.7 %), Coconut Cream (36.23 %), Liquid Coconut Milk (29.09 %), Cocopeat (19.02 %) and Activated Carbon (16.82 %).
In addition, export earnings from Spices and Concentrates increased y-o-y by 6.41 % to US$ 322.09 Mn in the period of January to September 2024. This increase mainly driven by the strong performance in exports of Pepper (72.38%). Pepper exports to India increased 74.69 % in the first nine months of 2024 compared to the corresponding period of previous year.
Export earnings from Food & Beverages have increased by 8.27 % y-o-y to US$ 348.95 Million in the period of January to September 2024, with the positive performance in exports of Processed food (30.54 %).
Furthermore, the estimated value of ICT exports is expected to increase by 18.52 % to US$ 1,089.88 Mn during the period of January to September 2024 when compared to the corresponding period of 2023.
In addition, the estimated value of Logistics & transport services is expected to increase by 12.21 % to US$ 1,287.33 Mn during the period of January to September 2024 when compared to the corresponding period of 2023.
b) Products & Services with Negative Growth (Decreases)
Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 17.59 % to US$ 310.44 Mn in the period of January to September 2024 compared to the corresponding period of 2023. This decline was primarily driven by poor performance in exports of Electrical Transformers (-16.21 %), Insulated wires (-11.08 %) and Other Electrical & Electronic Products (-22.64 %).
Further, export earnings from Seafood decreased by 7.05 % to US$ 179.36 Mn during the period of January to September 2024 compared to year 2023 due to the poor performance in Frozen Fish (-7.59 %) and Shrimps (-28.08%).
Export earnings from Ornamental fish decreased by 3.76 % to US$ 18.71 Mn in the first nine months of 2024 compared to the same period of 2023.
Table 1 shows the comparison of Export performance during the month of September 2024 and the period of January to September 2024 compared to 2023.
Sri Lanka’s Export Performance in Major Markets
Among Sri Lanka’s top 10 export markets, USA, UK, Germany, Netherlands, Canada and China markets showed positive growth in the month of September 2024 and the cumulative period from January to September 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 21.57 % to US$ 245.69 Mn in September 2024 compared to September 2023. In parallel, exports to United States of America in the cumulative period of January to September 2024 increased by 5.33 % to US$ 2,185.45 Mn compared to the corresponding periods in 2023.
Exports to the United Kingdom increased by 3.69 % to US$ 77.75 Mn in September 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 7.06 % to US$ 691.31 Mn in cumulative period of January to September 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 September 2024 and the period of January to September 2024 compared to 2023.
Exports to FTA Partners (India & Pakistan)
a) September 2024
In September 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a decline of 17.13 % to US$ 72.28 Mn compared to September 2023. Both, exports to India and Pakistan decreased by 16.78 % and 20.82% respectively in September 2024 compared to September 2023.
The negative performance of India was driven by lower exports of Arecanut while Pakistan’s negative performance was led by decreased exports of Betel leaves.
b) January – September 2024
Exports to India & Pakistan accounted for 6.8 % of total merchandise exports decreased by 1.84 % to US$ 701.73 Mn during the period of January to September 2024 compared to the corresponding period of previous year.
Exports to India and Pakistan decreased by 1.8 % and 2.24 % respectively during the period of January to September 2024 when compared with the corresponding period in 2023.
The negative export performance of India was driven by lower export of Arecanut (-42.31 %). Meanwhile, decreased exports to Pakistan were led by decreased exports of Betel leaves (-37.34%)
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of September 2024 and the period of January to September 2024 compared to 2023.
Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, increased by 0.44 % y-o-y in September 2024. However, exports to EU decreased by 0.62 % during the cumulative period of January to September 2024.
Exports to the top five EU markets were recorded as; Germany US$ 477.33 Mn (increased by 8.88 %), Italy US$ 441.88 Mn (decreased by 12.9 %), Netherlands US$ 285.57 Mn (increased by 15.88 %), France US$ 199.24 Mn. (decreased 19.77 %) and Belgium US$ 174.08 Mn (increased by 2.41%) during the cumulative period of January to September 2024 in comparison to the corresponding period in 2023.
Policy & Strategic Planning Division – 29.10.2024
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