Sharp increase in Lanka's export earnings

by L. S. A. Wedaarachchi

Sri Lanka's export earnings grew significantly in 2006. In 2005 Sri Lanka's exports grew by 9.6% to Rs. 638 billion. Any emerging economy needs the support of exporters.

The largest contribution for export growth in 2006 is industrial exports according to the Central Bank. The performance in textiles and garments, food and beverages, petroleum products is remarkable in the industrial sector. Agricultural exports continued to grow with higher performance in tea and rubber. cumulative exports in the first half of 2006 grew by 8.8 percent from US$ 2,906 million in 2005 to US$ 3,162 million in 2006.

The National Chamber of Exporters of Sri Lanka (NCE) recognised exporters in 1993 on the initiative of the founder President of the NCE Patrick Amarasingha making it the oldest awards presented to the exporting fraternity of Sri Lanka.

In the general industry sector value-addition, efficient utilisation of local resources and contribution to the economy have been considered by splitting the sub sectors in agriculture. Former chairman of the Sri Lanka Export Development Board and the Executive Director of the Sri Lanka National Council for Economic Development (NCED) Rohantha N. A. Athukorala said that Sri Lanka's export target is Rs. 1,000 billion by the end of 2008.

"However, there are some key issues namely in Sri Lanka's top markets the USA and UK and it is time that we got together and decide how we will face the key competitor China. Exports from China to UK last year have grown from 85 million Sterling to 185 million Sterling registering a growth of 117 percent from January - August last year and reaching a record of 283.5 million Sterling Pounds at the end of the year, he said.

"The key success to this was the strong marketing by China in the UK market. We have to look for a different strategy for Sri Lanka or else it will not augur well for exports," he said.

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