Sri Lanka’s export sector achieved significant milestones in the first 11 months of 2024, with total export earnings crossing $14.78 billion, reflecting a 6.44% year-on-year (YoY) growth.
According to the Sri Lanka Export Development Board (EDB), merchandise exports contributed $11.61 billion, marking a 6.44% YoY rise, while services exports generated an estimated $3.17 billion, up by 7.39% YoY.
However, November saw a downturn in merchandise exports, which dropped 5.56% YoY to $943.1 million, a 14.4% decrease compared to October 2024. This was primarily due to reduced exports of rubber-based products, electrical and electronic components, food and beverages, and seafood.
Services Sector Performance
Despite the decline in merchandise, services exports for November 2024 surged by 21% YoY to $326.23 million, driven by robust growth in ICT/BPM, construction, financial services, and transport and logistics. Combined, merchandise and services exports for November reached $1.26 billion, showing a marginal 0.04% increase compared to November 2023.
Year-End Forecasts
The EDB had projected $16.3 billion in total export revenue for 2024, including $12.7 billion from merchandise exports and $3.6 billion from services. While the year’s overall performance has been positive, achieving this target remains uncertain given the mixed results in November.
Sectoral Analysis: Positive Growth Areas
Apparel and Textiles: November export earnings rose 0.54% YoY to $397.19 million, with notable increases in shipments to the US (1.4%) and the UK (4.6%).
Tea: Contributing 12% of merchandise exports, tea earnings grew by 4.72% YoY to $118.15 million. Growth was led by Tea Packets (14.14%) and Bulk Tea (5.02%).
Coconut-Based Products: Monthly earnings increased by 13.08% YoY. Subcategories such as Coconut Kernel Products (12.37%), Coconut Fibre Products (11.73%), and Coconut Shell Products (16.72%) saw significant gains. Specific items like Coconut Oil, Desiccated Coconut, and Coconut Milk Powder rose by 8.18%, 20.64%, and 24.8%, respectively.
Spices and Concentrates: Export earnings jumped 33.17% YoY to $41.27 million, driven by strong performances in Pepper (169.71%) and Cinnamon (15.96%).
ICT/BPM and Logistics: ICT exports are expected to rise 38.04% YoY to $141.39 million, while logistics and transport services may grow by 21.09% YoY to $162.34 million.
Sectors with Declines
Rubber and Rubber-Finished Products: Earnings fell 1.96% YoY to $77.2 million, with Pneumatic and Retreaded Rubber Tyres and Tubes dropping 22.95%.
Electrical and Electronics: Earnings decreased by 6.18% YoY to $35.08 million, primarily due to a 20.47% decline in Insulated Wires and Cables.Food and Beverages: Earnings dropped 8.29% YoY to $36.29 million, with notable decreases in Animal Feed (-22.81%) and Other Cereals (-30.73%).
Seafood: Export earnings plummeted 34.68% YoY to $16.46 million, attributed to declines in Frozen Fish (-22.49%), Fresh Fish (-39.92%), and Shrimps (-72.22%).Ornamental Fish: Earnings fell 26.64% YoY to $1.79 million.
While Sri Lanka’s export sector has demonstrated resilience and notable growth in key areas, challenges persist in certain industries. The mixed performance underscores the need for targeted strategies to bolster underperforming sectors while capitalizing on growth opportunities in high-performing categories.
