By: Staff Writer
August 27, Colombo (LNW): Sri Lanka’s exports are expected to rise by 8.4% in 2024, reaching $12.9 billion, following a decrease in 2023. This forecast is detailed in the Central Bank of Sri Lanka’s (CBSL) Annual Economic Review of 2023, which was released last week. In 2023, the country’s exports fell by 9%, dropping to $11.9 billion from $13.1 billion in 2022.
Imports, on the other hand, are projected to rebound to $20 billion this year, recovering from $16.8 billion in 2023, which was a decline from $18.3 billion in 2022.
In the first two months of 2024, exports reached $2 billion, a 3.6% increase compared to the same period in 2023, while imports surged by 18% to $2.89 billion.
In July 2024, Sri Lanka’s merchandise export earnings surpassed the $1 billion mark, bringing the total export value for the first seven months of the year to over $9 billion. July alone saw a 6.58% year-on-year increase in merchandise exports, totaling $1.08 billion, a 5.5% rise compared to June 2024.
The growth in earnings was driven by key sectors such as apparel and textiles, tea, coconut-based products, spices and concentrates, and seafood.
In addition to merchandise, services exports for July 2024 were estimated at $293.26 million, a 16.44% increase over July 2023. This includes sectors like ICT/BPM, construction, financial services, transport, and logistics. Total exports for June 2024, encompassing both goods and services, amounted to $1.9 billion, reflecting a 9.52% growth compared to the same period in 2023.
For the first seven months of 2024, total merchandise exports grew by 4.94% year-on-year to over $7.23 billion, while service sector earnings increased by 12.28% year-on-year to $1.67 billion.
This brought overall export earnings for the January to July period to $9.13 billion, marking a 5.86% year-on-year growth.
CBSL noted that the growth outlook for Sri Lanka is positive, with sustained external demand for domestic services, especially tourism.
Additionally, if ongoing efforts to enhance export capabilities succeed, there could be a renewed demand for exports, driven by improved economic conditions among Sri Lanka’s key trading partners.
However, the merchandise trade deficit is expected to widen in 2024 due to a potential increase in import demand.
This reflects the relaxation of import restrictions, heightened economic activity, and increased spending power among consumers and businesses, despite the moderate growth expected in export earnings.
