Exports in various sectors seen increasing in 2021

Merchandise export revenue rose by 23 per cent to US$12.4 billion last year while $1 billion alone has been recorded for rubber exports including surgical gloves owing to demand from the pandemic, said Suresh D. de Mel- Export Development Board (EDB) Chairman and Chief Executive last week.

He was briefing the media on Sri Lanka’s Export Performance -2021 at the Hilton Colombo Residences, Colombo.

He said coconut exports have recorded $836.1 million, a 26 per cent increase while the highest ever value for Cinnamon, Pepper, Cocopeat, Shrimps and Ornamental Fish exports have also been recorded. A significant growth for export of ICT /BPM has also been seen. Exports to partner countries that have Free Trade Agreements with Sri Lanka have increased by 34 per cent bringing in $907 million. The top export destination countries including India, Germany, Netherlands Canada and China have shown a significant growth whereas other countries including South Asia, Middle East and African countries have also grown. But owing to few container ships, the supply chains have disrupted creating shortage of goods and essential items in the market place.

Minister of Trade Dr. Bandula Gunawardena addressing the media said owing to the pandemic the world trade has been severely affected that led to the closure of factories and industries in many parts of the world. Thousands of workers have lost their jobs owing to the closure of factories. Container and shipping costs too have risen sky-high. Petroleum products including chemical fertilisers have shot up in price and malnutrition and hunger have increased in the world as a result.

He emphasised that to salvage the country and boost its economy prowess will only happen when the whole country becomes an export zone. The politicians alone cannot do it but this will solely rest on the efforts made by entrepreneurs of the country. There are talented entrepreneurs in both Small, Medium Enterprises (SME) who should be given a helping hand to generate exports. The countries that helped entrepreneurs in the past were Singapore, Malaysia, Vietnam, Taiwan Thailand and South Korea. “There is no other miracle that we can think of,” he said.

When compared with tea exports Information Technology (ICT/ BPM) has brought in $1.2 billion in 2021. The CESS Fund of the EDB taken over the Treasury should be reverted to the EDB to encourage entrepreneurs in the country.

Meanwhile Sri Lanka’s merchandise exports increased by 16.71 per cent to $1.125.69 million in December 2021 compared to December 2020 as per data released by the Sri Lanka Customs. Exports have shown above one billion dollars for the sixth consecutive month in December last year.