April exports narrow 0.9% to US $ 707mn; trade deficit up 2.9%

The export earnings during April narrowed 0.9 percent YOY to US $ 706.6 million while the imports contracted by 2.0 percent YOY to US $ 1.46 billion resulting in trade deficit of US $ 754.3 million, an increase of 2.9 percent.

The decline in exports in April was a result of the 12.4 percent YOY fall in agricultural exports to US $ 159.5 million but the industrial exports increased by 3.1 percent YOY to US $ 544.2 million.

Earnings from tea, the largest agricultural export commodity, saw declining by 8.7 percent YOY to US $ 93.2 million while spices earnings fell by 30 percent YOY to US $ 13 million.

Earnings from rubber however showed a growth of 14.8 percent YOY to US $ 2.7 million.

Meanwhile, the textile and garments, the country’s largest commodity export income earner, saw its April earnings rising by a modest 3.1 percent YOY to US $ 340.5 million.

On the import side, the consumer goods imports declined by 15.9 percent YOY to US $ 316.2 million.

Sri Lanka’s Central Bank last week further tightened the monetary policy to rein in demand pressures on economy created through bank credit, which fuel excessive consumption.

Imports of food and beverages and vegetables have declined by 21.2 percent and 45.9 percent, respectively to US $ 117.4 million and 18.4 million each.

Notably the imports of vehicles have come down by 28.8 percent YOY in April to US $ 67.2 million.

The fuel import bill has narrowed by 5.5 percent YOY to US $ 200.8 million largely due to record low crude oil prices in the world market.

Fertilizer imports have significantly come down by 59 percent YOY to US $ 13 million. The coalition government stopped the fertilizer subsidy and instead proposed to give a fixed annual amount for the farmers, for them to buy fertilizer.

Meanwhile, the investment goods imports rose by 3.1 percent YOY to US $ 364.3 million but the transport equipment imports fell by 46.7 percent YOY to US $ 37.3 million.

The current regime stopped many infrastructure development projects due to the alleged malpractices but is seen recommencing some of them lately.

EARNINGS FROM TEA, THE LARGEST AGRICULTURAL EXPORT COMMODITY, SAW DECLINING BY 8.7 PERCENT YOY