Better performance anticipated this year:
Lanka’s annual export earnings reach all-time high
by our economic correspondent
Sri Lanka’s annual export earnings reached its highest in
post-independence history in 2010, the Central Bank said yesterday.
The monthly export earnings for December 2010 were also the highest
for a single month, the Bank said.
“Cumulative exports increased by 17.3 percent to US$ 8,307 million
during 2010 recording the highest annual value so far in history,” a
Central Bank spokesman said.
Earnings from exports increased by 34 percent, year-on-year, to US$
968 million in December 2010.
“This is a spectacular achievement, considering that the war against
terrorism ended only around 18 months ago. This year should see an even
better performance on the exports’ front as all export sectors are
performing very well,” the spokesman said.
The largest contribution to the growth in exports in December was
from the industrial sector, led by significant increases in the export
of textiles and garments, food and beverages and rubber products, he
said.
Despite the loss of the GSP Plus facility, earnings from garment
exports to the European Union increased by 33.9 percent in December
2010, allaying fears expressed in some quarters that it would have a
crippling effect. There was a 31.4 percent increase in garment exports
to the US as well in the same month.
Export earnings from food, beverages and tobacco products rose 74.3
percent, year-on-year. Rubber products also fared well, thanks to
exports of new pneumatic tyres, apparel and clothing accessories such as
gloves. “Significantly, earnings from agricultural exports increased
substantially in December 2010, mainly due to higher prices recorded by
major export crops in the international market,” he said.
Earnings from minor agricultural exports increased 28.8 percent to
US$ 30 million in December 2010. Imports also increased in 2010. The
cumulative expenditure on imports increased by 32.4 percent to US
dollars 13,512 million last year. Expenditure on imports rose 30.8
percent to US$ 1,429 million in December 2010. Expenditure on imports of
intermediate goods increased in December 2010, led by higher expenditure
incurred on petroleum imports.
Import expenditure on food and drink increased in December 2010
mainly due to higher food prices in the international market. The
expenditure on non-food consumer imports also increased mainly due to
higher vehicle imports. Last year was also an exceptional year for
expatriate remittances, the Central Bank said. During 2010, workers’
remittances increased by 23.6 percent to US$ 4,116 million compared to
2009. Gross official reserves amounted to US$ 6.6 billion by end January
2011.
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