Wednesday, 18 October 2017 - 16:31
Export revenue rises in August, trade deficit too expands



Central Bank says Sri Lanka’s external sector showed a mixed performance in August 2017.

Although export earnings increased in August 2017, higher growth in import expenditure resulted in an expansion of the trade deficit.

The latest data shows that the export earnings have surpassed the 1 billion dollar mark for the second consecutive month.

The CBSL said the increase indicated the positive impact of the restoration of the GSP+ facility.

Accordingly, earnings from exports increased by 15.5 percent (year-on-year) to US dollars 1,001 million.

On a cumulative basis, earnings from exports grew by 7.6 percent (year-on-year) to 7,413 million dollars during the first eight months of 2017 mainly due to increased earnings received from exports of tea, petroleum products, transport equipment, spices, and seafood.

In contrast, on a cumulative basis, export earnings from textiles and garments, gems, diamonds and jewelry and leather, travel goods and footwear declined during the period under consideration.

The USA, the UK, India, Germany, and Italy were the leading markets for merchandise exports of Sri Lanka during the first eight months of 2017, accounting for about 50 percent of total exports.

However, the import expenditure increased by 9.6 percent (year-on-year) to 13,599 million dollars during the first eight months of 2017 largely due to higher imports of fuel, gold, and rice. However, import expenditure on machinery and equipment, personal vehicles and fertilizer declined during this period.


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