Merchandise export earnings top US$ 5.5bn in first half of the year

June export earnings hit threemonth high of US$ 978mn

Apparel exports recover in first half to US$ 2.5bn

Tea exports for first half tops US$ 650mn; earnings from rubber and rubber-finished products up 45% to US$ 520mn

Services exports estimated to have risen by 20% to US$ 1.6bn in first half

Sri Lanka’s merchandise exports topped US$ 5.5 billion in the first half of the year with June earnings reaching a three-month high, flirting with the US$ 1 billion mark, according to Sri Lanka Customs data compiled by the Export Development Board (Edb).export earnings rose by 9.41 percent year-on-year (YOY) to US$ 978.2 million in June despite the impacts of third COVID-19 wave in the country recording the second highest earnings for the year.

Sri Lanka’s overall merchandise export earnings rose by 27.5 percent YOY to US$ 5.56 billion in the first half of the year. However, it was below the pre-pandemic export earnings of US$ 5.92 billion recorded in the same period of 2020.

On a month-on-month (MOM) basis, export earnings saw a steady growth for the second consecutive month in June.

In June, apparel exports sector recorded 3 percent YOY growth to reach US$ 414.14 million, accounting for 42.3 percent of the country’s merchandise export earnings in the month. In the sixmonth period, apparel exports recovered by 27.97 percent YOY to US$ 2.48 billion.

Meanwhile, tea export earnings almost doubled in June, growing by 7.8 percent YOY to US$ 123.91 million, constituting for 12.7 percent of total merchandise exports in the month.

Accordingly, tea export earnings in the six-month period rose by 13.80 percent YOY to US$ 650.54 million.

In June, export earnings from rubber and rubber-finished products increased by 38.63 percent YOY to US$ 95.50 million.

Overall, rubber and rubberfinished products recorded US$ 519.96 million in export earnings for the six-month period, up 49 percent YOY.

Coconut exports grew by 8.6 percent YOY in June to reach US$ 70.61 million while recording an overall growth of 37.72 percent YOY to reach US$ 387.8 million for the six-month period.

Meanwhile, export earnings from electrical and electronic components (EEC) rose by over 21 percent YOY to US$ 37.67 million in June.

In the six-month period, earnings from EEC saw a growth of 40.15 percent YOY to US$ 201.95 million in the six-month period with record growth in export earnings from insulated wires and other electrical and electronic products.

Further, export income from gem and jewellery in June recovered to US$ 20.3 million from US$ 10.13 million a year ago. Overall earnings from gem and jewellery exports also recovered by 127.06 percent YOY to US$ 78.53 million in the six-month period.

Although with 46.02 percent YOY growth, the European Union (EU) emerged as the largest market for Sri Lanka’s exports, purchasing US$ 1.38 billion worth export goods in the six-month period of the year.

The United States (U.S) fell to the second spot with 18.10 percent YOY growth, purchasing US$ 1.35 billion worth Sri Lankan exports.

The United Kingdom (UK) was the single largest market for Sri Lanka’s exports in the six-month period. Exports to UK grew by 22.84 percent YOY to US$ 444.18 million during the period.

Netherlands, Canada and Australia were the fastest growing markets for the country’s exports in the first half of the year.

The services exports estimated by EDB, which includes ICT/BPM, construction, financial services and transport & logistics, rose by nearly 20 percent YOY to US$ 1.59 billion in the six-month period.