Archives

Export earnings in US dollar terms increased by 33 per cent in May 2003 in contrast to a decline of 16 per cent recorded in May 2002. This was an increase of US dollars 154 million over the previous month. The high export growth was supported by continued strong performance of industrial exports, which rose by 42 per cent in May 2003. All major industrial subcategories contributed to this acceleration of export growth. The textiles and garments sector, which grew by 40 per cent in volume, accounted for 59 per cent of the monthly increase.

Meanwhile, the expenditure on imports declined by 11 per cent in May 2003 (in comparison to decline of 3 per cent in 2002) mainly reflecting the impact of higher import value of power generators in May 2002 and short term monthly fluctuations in some major import categories. As a result, the monthly trade deficit came down to US dollars 50 million in May 2003, compared to a deficit of US dollars 230 million each in May 2002 and April 2003. The cumulative export earnings during the first five months of 2003 increased by 17 per cent, (during the first four months, the rate of growth amounted to 13 per cent) in contrast to a drop of 16 per cent in the comparable period in 2002.

Similarly, cumulative imports increased by 7 per cent as against a decrease of 11 per cent in 2002. Consequently, the trade deficit in the first five months of 2003 declined to US dollars 616 million, compared with a deficit of US dollars 733 million recorded during the first five months of 2002.

Exports

Export earnings amounted to US dollars 459 million in May 2003, the highest monthly exports so far in 2003 driven by a substantial growth in textiles and garments. The cumulative export earnings during the first five months of 2003 were US dollars 1,961 million, compared with US dollars, 1,676 million recorded during the corresponding period in 2002.

Imports

The expenditure on imports, amounting to US dollars 509 million, declined by 11 per cent in May 2003, compared with imports amounting to US dollars 575 million in May 2002. The expenditure on imports during the first five months of 2003 was US dollars 2,577 million, an increase of 7 per cent over the imports in the first five months of 2002.

Trade deficit

The trade deficit in the first five months of 2003 declined to US dollar 616 million, US dollars 117 million less than the deficit in the first five months of 2002. This reduction, together with increased foreign exchange inflows due to the growth in tourism, private transfers and capital account flows, strengthened the stability in the exchange rate and increased foreign exchange liquidity, thereby enabling the Central Bank to purchase US dollar 113 million from the market during the first five months of 2003.

www.crescat.com

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries

Produced by Lake House
Copyright © 2003 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager