By: Staff Writer
January 02, Colombo (LNW): Sri Lanka experienced a month-on-month (M-o-M) decline in both exports and imports in November 2024, although year-on-year (YoY) and cumulative figures showed growth, according to the latest data released by the Central Bank of Sri Lanka (CBSL).
Exports: A Marginal YoY Decline
Merchandise export earnings totaled $994 million in November, down from $1.15 billion in October. This represents a marginal YoY decrease of 0.5%, largely due to reduced mineral and industrial exports, despite an increase in agricultural exports. Cumulatively, export earnings for the first 11 months of 2024 amounted to $11.67 billion, up from $10.9 billion in the same period of 2023.
The decline in export earnings in November 2024 compared to November 2023 was primarily driven by lower export prices. The export volume index increased by 2.5%, but the unit value index dropped by 2.9%.
Notably, petroleum product exports surged by 27% to $70 million due to higher volumes, while agricultural exports grew by 6% to $228 million, supported by increased volumes of spices, tea, and coconut-based products. However, mineral exports plummeted by 91% to $1.5 million.
Imports: Higher YoY but Lower M-o-M
Imports in November amounted to $1.49 billion, down from $1.7 billion in October. However, YoY, imports grew by 7.7%, benefiting from a low base in November 2023. For the first 11 months of 2024, cumulative import value rose to $16.9 billion, up from $15.3 billion in the same period of 2023.
The increase in import expenditure was driven by higher volumes, as indicated by an 8.9% rise in the import volume index, despite a 1% decline in the unit value index. Spending on consumer goods jumped by 20.5% YoY to $319.6 million, driven by higher imports of food items like edible oils and non-food items such as clothing and home appliances.
Intermediate goods imports grew by 6% to $920 million, with significant contributions from textiles, wheat, and machinery parts. Investment goods imports saw a marginal rise of 0.3% to $256 million, driven by transport equipment.
Trade Deficit Widening
The merchandise trade deficit widened to $502 million in November 2024, compared to $390 million a year earlier, driven by increased import expenditure and marginally lower export earnings. The cumulative deficit for the first 11 months of 2024 reached $5.24 billion, up from $4.4 billion in the same period of 2023.
Terms of Trade and Outlook
The terms of trade deteriorated by 1.9% in November 2024, as declining export prices outpaced the decline in import prices. Despite the challenges, cumulative growth in exports and imports suggests a recovering trade environment, though with ongoing pressures on the trade balance.
