Sri Lanka’s export sector witnessed a modest increase in February 2024, marking a positive trend after a decline in January. The total merchandise export earnings reached $983.7 million, representing a 0.17% rise compared to February 2023. This growth also signifies a 1.3% improvement from January 2024, suggesting a gradual recovery in the country’s export performance.
The story, however, is one of mixed success across different sectors. Agriculture emerged as the star performer, boasting an impressive 11.82% increase in export earnings to $255.76 million. This surge was primarily driven by a robust 22.16% rise in tea exports, totaling $127.74 million. The increased sales of Bulk Tea and Tea packets, coupled with a significant over 20% jump in export volume, indicate a thriving global demand for Sri Lankan tea.
Other agricultural products also contributed positively. Rubber and rubber-finished products experienced a notable 15.87% year-over-year increase to $88.73 million, fueled by a strong demand for Pneumatic & Retreaded Rubber Tyres & Tubes. Similarly, the Coconut-based products sector witnessed a 25.17% growth, with Activated Carbon exports showcasing a promising 11.25% rise. The seafood sector too joined the positive trend, with earnings climbing by 3.5% to $20.69 million, driven by exports of fresh fish and shrimps.
Looking beyond agriculture, the Food & Beverages sector displayed remarkable potential, recording a substantial 36.77% year-over-year increase in export earnings to $43.0 million. This highlights the growing possibilities in processed food exports. Additionally, the Diamonds, Gems & Jewellery sector experienced a significant leap, with export earnings surging by a remarkable 66.56% to $37.61 million.
However, the picture isn’t entirely rosy. Industrial exports faced a setback, declining by 3.36% to $727.94 million. The Apparel & Textile sector, a critical contributor to Sri Lanka’s exports, witnessed a 2.06% decrease in earnings. Ornamental fish and Electrical & Electronics Components also saw significant drops, dampening the overall industrial export performance.
The report further sheds light on Sri Lanka’s export markets. The United States, the country’s largest export destination, displayed an encouraging 8.02% increase in exports, reaching $249.6 million. However, exports to India and Pakistan fell by 18.18%. European Union markets presented a mixed bag, with Germany, Italy, and France experiencing growth, while Belgium faced a decline.
In conclusion, Sri Lanka’s export sector in February 2024 displayed a tentative recovery with a slight increase. While the agricultural sector emerged as a clear winner, the decline in industrial exports and the uneven performance across markets paint a picture of a dynamic and challenging export environment. As Sri Lanka navigates global economic uncertainties, continued diversification and strategic focus on high-growth sectors will be crucial for sustained export growth.