Industrial exports account for 74.2 percent:

Export earnings top $ 1,797m in two months

There was commendable growth in exports, in the first two months of the year with earnings reaching US$ 1,797 million and industrial exports accounting for 74.2 percent of total exports, the Central Bank said yesterday. Among the industrial exports, further growth was registered in textiles and garments and rubber products categories.

“It is significant that industrial exports have accounted for 74 percent of total exports.

This is a sign that our industrial goods-led export growth will continue in the following months, showing the effectiveness of President Mahinda Rajapaksa’s development vision. Rubber products, among all industrial products, have become the main component of this exports rise,” Industry and Commerce Minister Rishad Bathiudeen said.

The Bank said that earnings from exports increased by 7.6 percent (to US$ 879 million) in February 2012 alone compared to the corresponding month of the previous year. These statistics were revealed by the bank in a review of the External Sector Performance for the first two months of the year.

The largest contribution to export earnings in February 2012 was from industrial exports.

Industrial exports grew mainly driven by gem, diamonds, jewellery and rubber products. Earnings from rubber based products increased by 17.5 percent due to the high demand from major export destinations, particularly the USA.

A spokesman for the Bank said that earnings from agricultural exports declined as a result of a lower performance in traditional agricultural exports of tea and rubber.

However, coconut exports increased by 46.5 percent in February, mainly due to higher production and favourable prices in the international market.

In another positive development, the number of tourist arrivals in February 2012 increased by 27 percent to 83,549 while earnings from tourism grew at 35 percent to US$ 86 million compared to February 2011. Workers’ remittances too were up to US$ 470 million in February 2012 compared to US$ 393 million in February 2011, recording a year-on-year growth of 19.6 percent.

The Bank also disclosed that by end February 2012, gross official reserves, excluding Asian Clearing Union (ACU) balances, amounted to US$ 5,522 million. Total external reserves, which include gross official reserves and foreign assets of commercial banks amounted to US$ 6,774 million, equivalent to 3.9 months of imports.

Expenditure on imports increased by 27.9 percent in February 2012 compared to the corresponding month of the previous year. Expenditure on petroleum imports increased by 111.7 percent to US dollars 506 million in February 2012 compared to February 2011.

Cumulative expenditure on imports during the first two months of 2012 increased by 24.7 percent to US dollars 3,496 million. The trade deficit during January-February 2012 stood at US$ 1,699 million.