Sri Lanka achieves record exports in 2017
Sri Lankan merchandise exports grew to an all time record of over Us$11.4bn in 2017, surpassing the previous high of Us$11.1bn achieved in 2014. Once, again the EU and the USA were our biggest markets taking US$ 3bn each.
The sectors showing particularly strong year-on-year growth were tea 20 percent and fisheries 40 percent. Tea benefitted from higher prices and enhanced access to Middle Eastern markets, particularly, Iran. Fisheries benefitted from both the lifting of the EU ban in June 2016 and the GSP Plus concession in May 2017.
Apparel which accounts for over 40 percent of all goods exports and employs over 300,000people directly, mostly women, recorded a modest 2 percent growth over 2016. However it is encouraging that the past 4 months showed 10 percent year-on-year growth as new orders from the EU were secured due to the GSP Plus benefit of 12 percent duty exemption. 2018 is expected to be a strong year for the apparel manufacturers.
Services exports comprising ICT/ BPM, logistics, financial services and construction contributed an additional US$ 3.7 billion of exports, an increase of 8 percent compared to 2016. The growth in services in 2017 was significant compared to the year 2016 where ICT/BPM grew at 7.7 percent and logistics at 5 percent. Furthermore, ICT/BPM companies are expected to show a double digit growth next year with thebudget support for IT SMES to be executed in 2018,while benefiting from grant schemes for innovation and entrepreneurship. In addition the 40 percent foreign ownership restriction will be removed from freight forwarding to facilitate investment into the sector.
The Export Development Board (EDB), under the Ministry of Development Strategies and International Trade, is Sri Lanka’s apex organisation for the promotion and development of exports. Commenting on the landmark 2017 performance, EDB Chairperson, Indira Malwatte said, “Our export results are particularly noteworthy given the global trading environment.