Merchandise export revenue increases by more than USD 1.2 billion in June

Merchandise export revenue rose 20% year-on-year (YoY) in June 2022, according to the Export Development Board (EDB).

According to statistics released by Sri Lanka Customs, revenue fell from US$980.2 million in May to US$1,208.2 million in June.

This revenue growth is the result of increased revenue from the export of garments and textiles, rubber and coconut products, food and beverages and seafood, noted the EDB.


Monthly Merchandise Export Performance, 2020 – June 2022 in US$ Million

(Sources: Central Bank of Sri Lanka, Sri Lanka Customs and Sri Lanka Export Development Board)

Main exports in June 2022

Main product sectors except tea and spices and concentrates; Clothing and textiles, rubber products, coconut products, electrical and electronic components and food and beverages, seafood and ornamental fish, as shown in Table 1 above below, recorded an increase in exports in June 2022.

Apparel and textiles exports increased 36.85% year-on-year to reach $566.78 million in June 2022. This increase was driven by both apparel and textiles.

Export revenue of rubber and finished rubber products increased 7.18% year-on-year to reach $102.36 million in June 2022, with a good export performance of tires and reprocessed rubber tires and inner tubes (15.2%).

According to the monthly analysis, the export earnings of kernel, fiber and shell products classified as coconut products increased by 30.15%, 1.63% and 21.3 % respectively in June 2022 compared to June 2021.

Seafood export earnings increased by 130.75% to $36.39 million in June 2022 compared to June 2021. The expansion was mainly due to higher exports of frozen fish ( 89.3%), fresh fish (219.18%) and prawns (219.25%).

In addition, ornamental fish export earnings increased by 297.4% to reach US$3.06 million in June 2022 compared to June 2021.

Export revenue of electrical and electronic components increased by 5.71% year-on-year to reach US$39.82 million in June 2022, with a strong performance of insulated wire and cable exports (14.5%) and switches, cards and panels (23.55%).

However, tea export earnings in June 2022, which accounted for 12% of merchandise exports, fell 5.99% year-on-year to $116.49 million. This was mainly due to the decline in bulk tea exports (10.99%).

In addition, Spices and Essential Oils export revenues decreased by 10.9% to US$31.74 million in June 2022 compared to June 2021 due to the poor performance of Pepper (49. 68%), oleoresins (-7.26%) and cloves (-24.15%). Despite the industry’s decline, Cinnamon’s revenue increased 89.81% in June 2022 compared to June 2021.


Main exports during the period from January to June 2022

For the first half of 2022, merchandise exports increased by 12.4% to reach US$6,408.3 million compared to the corresponding period of 2021. Main product sectors except tea and spices and concentrates; Clothing and textiles, rubber products, coconut products, electronics and electronic components, food and beverages, seafood and ornamental fish, as specified in the Table 1 below, recorded an increase in exports.

Exports of garments and textiles increased by 19.73% to reach US$2,967.39 million during the period of January to June 2022 compared to the same period of 2021. Excluding made-up clothing accessories (-8.7%), yarn (-21.38%) and textile floor coverings (-3.28%)); exports of other sub-categories of clothing and textiles increased.

For the period January to June 2022, export earnings of coconut and coconut products increased by 12% to US$434.34 million. Revenues from all major coconut product categories increased in the period January to June 2022 compared to the corresponding period of 2021 due to improved export performance of liquid coconut milk , coconut cream, coconut peat, mattress fiber, activated carbon, coconut oil and desiccated coconut.

Meanwhile, revenue from the export of electrical and electronic components (EEC) increased by 12.96% to reach US$228.12 million during the period January to June 2022 compared to the corresponding period. of 2021. The export of insulated wire increased by 18.68% in the period from January to June 2022 to US$40.54 million compared to the corresponding period of the previous year. In addition, exports of switches, switchboards and panels, electrical transformers and other electrical and electronic products increased by 8.29%, 18.87% and 9.14% respectively during the period from January to June 2022 compared to compared to the corresponding period of the previous year.

Seafood export revenue increased by 33.64% to US$142.17 million in the period January to June 2022 compared to the year 2021 due to better performance in all subcategories except lobsters; Frozen Fish (20.97%), Fresh Fish (70.51%) and Shrimps (86.04%).

In addition, revenue from the export of ornamental fish increased by 51.49% to US$10.15 million in the period January to June 2022 compared to the year 2022.

However, tea export earnings decreased by 11.25% to US$577.38 million in the period January to June 2022 compared to the corresponding period of 2021. Exports of all sub- tea sector categories excluding tea bags; Tea bags (-11.47%), loose tea (-10.96%), instant tea (-28.55%) and green tea (-23.65%) declined during the period from January to June 2022 compared to the same period of 2021.

Export revenue of finished rubber and rubber products decreased slightly by 0.64% to US$516.62 million from January to June 2022 compared to the same period of 2021, due to lower exports of industrial and surgical gloves (-16.06%). However, exports of tires and reprocessed rubber tires and inner tubes increased by 8.45% during the period from January to June 2022 compared to the same period of 2021.



Table 1: Performance of merchandise exports (values ​​in millions of US dollars)


Sri Lanka’s Export Performance in Major Markets

Strong export growth was recorded for the top 5 export markets during the month of June 2022 and the period from January to June 2022.

During the month of June 2022, exports to the United States, the main export destination of Sri Lanka, increased by 46.16% to reach US$323.65 million compared to the month of June 2021. better performance was driven by an increase in exports of Clothing and Textile (29.68%) and coconut products (26.8%).

The top export destination of the United States of America recorded $1,687.73 million in exports during the period January to June 2022, a significant year-on-year increase of 24, 54% compared to the $1,355.14 million recorded in 2021.



Table 2: Top 10 export destinations (values ​​in millions of US dollars)

Exports to FTA partners

During the period January to June 2022, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports and increased by 17.99% to 478, $67 million.

Although exports to India increased by 21.24% year-on-year to US$437.75 million, exports to Pakistan decreased by 8.31% to US$40.92 million in during the period from January to June 2022 compared to the corresponding period of 2021.

The increase in exports to India is mainly supported by the increase in exports of animal feed (19.26%), areca nuts (95.96%) and textiles (47.76%) in January-June 2022.


Sri Lanka’s Export Performance by Regions

On a comparison by region, exports to all regions except CIS countries increased during the month of June 2022 and the period from January to June 2022 compared to the corresponding period of 2021.

Exports to the European Union (EU) which accounted for 20% of Sri Lanka’s exports increased by 21.55% year-on-year to reach US$303.17 million during the month of June 2022.

During the period January to June 2022, the distribution of exports to the top five EU markets, which accounted for 80% of Sri Lanka’s total exports to the EU, was; Germany $383.94 million (9.41% increase), Italy $295.33 million (7.45% increase), Netherlands $203.02 million (4.81% increase), Belgium $156.39 million (1.98% decrease) and France United States $130.87 million. (up 14.71%).

Table 2: Top 10 export destinations (values ​​in millions of US dollars)

Service export

The estimated value of services exports for the first half of 2022 was $1,337 million, an increase of 45.72% compared to the corresponding period of 2021. Services exports estimated by EDB include ICT/BPM, construction, financial services and transportation and logistics.