SL export earnings decline further in February to around US$1 billion

Reflecting lower global demand and rising inflation, earnings from exports declined further for the second consecutive month as February merchandise shipments were down by 8.06% year-on-year to $ 1 billion, the Export Development Board said yesterday.

Although Sri Lanka’s export sector began 2023 on a negative note, earnings however managed to surpass the $ 1 billion mark.

Despite the earnings dip YoY in the first two months, it was higher than in 2021. In January earnings were up by 7% and the February performance was up by 6% compared to 2021.

For 2023 the EDB targets to achieve over $ 15.93 billion from merchandise exports, up from $ 13.01 billion achieved in 2022.

Export earnings from tea, which made up 12% of merchandise exports, increased by 9.14% YoY to $ 204.13 million in February 2023.

Earnings from the export of tea packets (21.24%) and instant tea (27.52%) increased in February 2023 compared to a year earlier. However, earnings from the export of bulk tea (-15.33%) and tea bags (-27.03%) decreased in February 2023.

In addition, export earnings from the Electrical and Electronics Components (EEC) increased by 13.72% YoY to $ 43.01 million in February 2023 with a strong performance in exports of other EEC products (22.12%).

Earnings from the export of spices and essential oils increased by 27.0% to $ 34.48 million YoY with a strong performance in cinnamon (20.16%) and cloves (412.82 %). Despite the increase recorded in the sector, earnings from pepper and essential oils decreased by 37.90% and 43.41% respectively in February 2023 compared to the same period last year.

Apparel and textile exports dropped by 2.32 % YoY to $ 483.35 million in February 2023. Though earnings from exports of apparel decreased by 14.75%, earnings from export of textiles increased by 146.67% in February 2023 compared to the same period in 2022.

Rubber and rubber finished products earnings have dropped by 17.81 % YoY to $ 76.58 million in February 2022, with negative performance in exports of pneumatic and retreaded rubber tyres and tubes (-6.10%) and industrial and surgical gloves (-45.38%).

On monthly analysis, export earnings of kernel products and fibre products categorized under the coconut-based category decreased by 14.65% and 37.63% respectively in February 2023 compared to the same period in 2022. However, earnings from coconut shell products increased by 28.67% YoY in February 2023.

Export earnings from liquid coconut milk which is categorized under the coconut kernel products decreased by 16.68% YoY to $ 8.69 million in February 2023.

Being the largest contributor to the coconut-based sector, coco peat, fibre pith and moulded products which are categorized under the coconut fibre products, decreased by 35.87% YoY to $ 10.55 million in February 2023.

Earnings from activated carbon, which is categorized under the coconut shell products increased by 2.18% YoY to $ 10.76 million in February 2023.

Seafood export earnings also dropped by 5.57% YoY to $ 19.99 million in February 2023. This decrease was mainly due to the decline in earnings from the export of frozen fish (-3.72%), fresh fish (-7.42%) and shrimps (-38.34%). However, export earnings from ornamental fish increased by 37.93% YoY to $ 2 million in February 2023.

From January to February 2023, merchandise exports decreased by 9.68 % to $ 1.98 billion compared to the corresponding period of 2022.