brand logo

Exporters have positive outlook for earnings: CCC-USAID 

10 Dec 2021

The bi-annual Export Barometer Survey demonstrated that exporters of Sri Lanka have a positive outlook in terms of the earnings despite the pandemic.  It said: “Sri Lankan exporters are confident in their outlook for export growth, despite challenges  faced in the first half of 2021.”  This survey was designed and conducted by the Ceylon Chamber of Commerce (CCC) and the US Agency for International Development (USAID)’s Partnership for Accelerating Results in Trade, National Expenditure, and Revenue (PARTNER) project. The results were released on 23 November 2021 in a virtual roundtable discussion with key private and public sector stakeholders.   The Export Barometer Survey is a bi-annual survey conducted to provide exporter insights over time. The most recent iteration provides key insights into the impact of Covid-19 on exports and the economy’s transition to the “new normal” as well as longer-term competitiveness.  Small and medium enterprises (SMEs) comprised the majority of the 120 respondents, and many hailed from the Western Province. One quarter of the responding firms were owned and/or led by women. More than three-fourths of the respondents were engaged in goods exports, with the remaining quarter focused on services.  According to the CCC, most exporters claim that they performed well in the first half of 2021; however, it was noted that most firms were not operating at their optimal capacity. Firms expect to increase their capacity utilisation in the next six months.  Exporters of all sizes experienced similar challenges in obtaining intermediate goods and the rising cost of transport and logistics.  The majority of exporters were more confident in managing their existing workforce than they were in June and September 2020, while 29% hoped to recruit for new positions in the next six months.  Most exporters (67%) were leveraging online channels to generate revenue. However, these online channels contributed less than 25% of their overall revenue. Compared to large firms, both SMEs and women-owned and/or led firms relied more on digital channels (such as social media, online advertising, online marketplace) in generating sales/revenue.  Despite the challenges faced by exporters, 75% of the firms found new export opportunities, with more opportunities prevalent among SME exporters. Exporters are exploring new markets with their current and new products/services, while also promoting their new products/services to the same markets they are in. Firms are also generating new business opportunities, mainly by utilising their existing buyers based in their current markets.  Almost all exporters stated that they need support from policymakers, trade chambers, and donor agencies to be more export-competitive, such as improving market access and establishing links with new customers. Exporters also had specific requests for the Government regarding improving efficiency in the regulatory process, tax relief/rebate/exemption, assistance in supply chain and export finance, and deploying a financial assistance package.  Exporters were more confident about their export growth in the next six months compared to their growth outlook on the economy. Most firms are looking to expand their market reach by increasing their presence/interest in at least one to two markets, with some looking to diversify away from traditional markets.


More News..