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August exports reach highest level

20 Oct 2021

  • Records $ 1 b for third consecutive month 
Earnings from exports in August 2021 grew by 16.2% over August 2020 to reach $ 1.1 billion, reaching the highest level of exports recorded in a month, according to data from the Central Bank of Sri Lanka (CBSL).  Earnings from exports were marginally higher at $ 1,104 million in July 2021. Cumulative export earnings increased by 22.6 % during January-August 2021, amounting to $ 7,903 million, compared to $ 6,445 million recorded in the corresponding period in 2020. However, the recent gap of around $ 345 million per month, on average, between the merchandise outflow and the financial inflow related to such exports, has been a matter of concern. Earnings from the export of industrial goods increased by 17.5 % in August 2021, compared to August 2020. This increase was due to a broad-based increase in earnings from most of the industrial products led by textiles and garments; petroleum products; rubber products; food, beverages, and tobacco; and machinery and mechanical appliances.  The export of garments to all major markets increased. Earnings from the export of petroleum products increased with the increase in prices of aviation and bunker fuel and the increase in volumes of bunker fuel exports. Increase in earnings from tyres and gloves led to higher earnings from rubber products, according to the CBSL. Meanwhile, expenditure on merchandise imports increased by 30.8 % to $ 1,687 million in August 2021, compared to $ 1,289 million recorded in August 2020.  The increase in import expenditure was observed across all main categories of imports, namely, consumer goods, intermediate goods, and investment goods, despite the continuation of some import restrictions imposed by the Government. On a cumulative basis, total import expenditure from January to August 2021 amounted to $ 13,411 million, compared to $ 10,257 million recorded in the corresponding period in 2020. Workers’ remittances moderated in August 2021, compared to August 2020. Workers’ remittances amounted to $ 447 million during August 2021, in comparison to $ 664 million in August 2020. Cumulative remittances during January-August 2021 amounted to $ 4,224 million, displaying a marginal decline of 2.8% year-over-year (YoY).


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