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| Sunday, 15 June 2003 |
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Substantial growth in exports and imports The recovery in exports and imports that had been experienced during the last few months continued in April. Export earnings in US dollar terms increased by 21 per cent in April in contrast to a decline of 19 per cent in April 2002. Similarly the expenditure on imports increased by 12 per cent, compared with a decline of three per cent in April 2002. However, the monthly trade deficit widened marginally to US$ 230 million compared to a US$ 226 million deficit in April 2002. The cumulative export earnings during the first four months of the year increased by 13 per cent, in contrast to a drop of 21 per cent in the comparable period in 2002. Similarly, cumulative imports increased by 13 per cent as against a decrease of 12 per cent in 2002. Consequently, the trade deficit in the first four months of 2003 increased to US$ 566 million compared with a deficit of US$ 503 million recorded during the first four months of last year. Export earnings amounted to US$ 305 million in April compared with US$ 251 million in April 2002. The cumulative export earnings during the first four months of the year were US$ 1,502 million, compared with earnings amounting to US$ 1,332 million recorded during the corresponding period in 2002. The largest contribution to export growth came from textiles and garments followed by machinery and equipment, food and beverages and rubber-based products. Earnings from textile and garment exports increased by 25 per cent to US$ 134 million in April, continuing the increasing trend recorded by this sector since October 2002. April is usually a lean month for the export of textiles and garments. However, earnings from agricultural products declined by one per cent, due to decreases in the exports of tea and cloves. Earnings from tea, amounting to US$ 46 million, recorded a decline of four per cent in April due to lower prices. Reflecting the impact of the outbreak of the Iraq war and war-related uncertainties, the prices of low grown tea sold to Middle-East countries were adversely affected during the first four months. During this period, tea production increased by 1.6 million kg. The reduction in export earnings from minor agricultural products was largely attributable to the substantially lower earnings from the export of cloves compared to the previous year. Earnings from other minor agricultural products, excluding cloves, increased by 11 per cent in April 2003 due to higher exports of cinnamon and un-manufactured tobacco. The expenditure on imports, amounting to US$ 535 million, increased by 12 per cent compared with imports amounting to US$ 477 million in April. The expenditure on imports during the first four months of 2003 was US$ 2,068 million, an increase of 13 per cent over the imports in the first four months of 2002. Imports of consumer goods declined by six per cent in April. Within this category, food imports declined by 24 per cent due to lower imports of wheat, sugar, rice, milk products and some fish products. Rice imports were low, reflecting the expectations of a large harvest in the Maha season. Imports of non-food consumer goods increased by 14 per cent, reflecting increases mainly in motor cars and cycles, radio receivers and TV sets, and rubber tyre and tubes. |
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