Sri Lanka’s September exports dip 6%

9 December 2015 03:25 am

•  Seventh consecutive exports decline since March
•  Imports fall 5.1 percent yoy
•  September trade deficit narrows 4.1%
•  Trade deficit of first 9 months widens 3.8%

Sri Lanka’s exports fell 5.9 percent year-on-year (yoy) in the month of September at a faster rate that of imports (5.1 percent yoy), data released by the Central Bank showed. 
September marked seventh consecutive decline in exports since March 2015.
The Central Bank data showed both industrial and agricultural exports falling 4.7 percent yoy to US $ 636.4 million and 11.3 percent yoy to US $ 205.6 million, respectively.
Rubber products exports, mainly consisting of tyres, machinery and mechanical appliances and printing industry products jointly recorded around 60 percent of the overall decline in exports. Apparel exports which account for 48 percent of total exports rose 1.8 percent yoy to US $ 411.2 million.
Tea and sea food were the main two reasons for the fall in exports in agricultural products in September. 
Tea exports income fell 20.4 percent yoy to US $ 106.3 million while sea food exports fell 43.4 percent yoy to US $ 10 million due to the European Union ban. 
The cumulative tea exports in the first nine months fell 17.2 percent yoy to little over US $ 1 billion. Tea exports have been severely affected by the lower demand from Russia and the Middle East countries. 
The cumulative sea food exports fell 36.9 percent yoy to US $ 122.5 million. The Central Bank said Seafood exports to the EU market dropped 82.4 percent yoy in September.
As it has been the case for so many months, the main contributor to the import expenditure in September was the reduced oil bill thanks to the lower international crude oil prices.
However consumer goods imports in September rose 7.4 percent yoy to US $ 392.4 millon, driven by non-food consumer goods, which rose 29.5 percent yoy to US $ 276.9 million. The vehicle imports rose 30.2 percent yoy to US $ 126.2 million. On a cumulative basis, Sri Lanka has imported vehicles worth of US $ 1.03 billion in the first nine months of the year, up 79.8 percent yoy.
The import expenditure on intermdediate goods fell 4.8 percent yoy to US $ 829 million due to the oil bill falling 23.4 percent yoy to US $ 226.4 million. Import of investment goods also fell 16.1 percent yoy to US $ 359.6 million amid a steep 47.9 percent yoy to US $ 73 million fall in transport equipment imports.
The trade deficit in September contracted by 4.1 percent to US $ 733 million in comparison to US $ 765 million in September 2014. 
However, on a cumulative basis, the trade deficit during the first nine months of 2015 widened by 3.8 percent to US $ 6,145 million.