Industrial exports record remarkable growth

by Uditha KUMARASINGHE

Earnings from industrial exports increased by 33.5 percent to US$ 5,313 million during the first eight months of 2011, led by textiles and garments, rubber products, petroleum products and machinery and equipment.

This has facilitated Sri Lanka’s industrial exports to achieve a remarkable performance during the first eight months of 2011.

According to the report on ‘Recent Economic Development’ issued by the Central Bank of Sri Lanka, earnings from textile and garment exports amounted to US$ 2,779 million, reflecting an increase of 27.4 percent over the corresponding period of 2010. Strong demand for high quality Sri Lankan garments and the rising cost of production in competitor countries mainly due to wage pressures helped Lanka’s exports of textiles and garments.

Given the higher concentration of Sri Lanka’s apparel exports to US and European markets, the expansion of the export base among emerging market economies would enable diversification and global reach. Earnings from rubber-based products increased by 69.1 percent to US$ 575 million in the first eight months of 2011, the report stated.

The domestic rubber industry, particularly companies that manufacture solid tyres and rubber gloves for the export market, absorbed much of the local rubber production.