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Export earnings dip in February 

19 Apr 2021

  • Records YoY decline of 3.7% 

  Earnings from merchandise exports in February 2021 declined by 3.7% to $ 952 million, compared to February 2020. Export earnings exhibited a recovery towards pre-pandemic levels since the peak of the second wave of Covid-19 spread in Sri Lanka, reaching levels close to those recorded in the same month of 2020 ($ 989 million) and 2019 ($ 981 million).  Earnings from the export of industrial goods declined by 6.3 % in February 2021, compared to a year ago, mainly due to the decline in earnings from petroleum product exports by 60.8 % (YoY) and textiles and garments by 5.3 % (YoY). Earnings from the export of petroleum products declined because of the significant reduction in volumes of aviation fuel and bunkering fuel supplied due to lower aircraft and ship arrivals in the country, as well as the reduction in prices for these export products.  Earnings from garment exports to the EU increased, while exports to the US and other destinations declined. Earnings from a number of smaller export segments declined, while increases were recorded under rubber products (due to an increase in export of surgical and other gloves and rubber tyres), machinery and mechanical appliances, transport equipment, chemical products (mainly activated carbon), plastics and articles thereof (mainly plastic sacks and bags and vinyl polymers), and ceramic products (mainly tableware and kitchenware).  Export earnings from agricultural goods increased by 5.9 % in February 2021, compared to a year ago, mainly contributed by spices, coconut and tea. Among spices, earnings from pepper, cinnamon, nutmeg and mace were supported by both price and volume increases while earnings from cloves also increased with volume increases. Increased earnings from tea exports were mainly due to price increases, while volumes registered a decline.  Earnings from coconut exports increased mainly through the export of coconut fibres. Export earnings from minor agricultural products, such as edible nuts and seafood, declined significantly.  Mineral exports in February 2021 were higher than that of February 2020, mainly due to the increase in exportation of items, such as titanium and zirconium ores, slag, graphite, and graphite powder.  Meanwhile, expenditure on merchandise imports was 2.5% lower in February 2021 at $ 1,524 million, compared to February 2020.


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