Despite the huge damage caused by the tsunami to the economy, the country's export sector is showing signs of stronger performance during this year.

The export figures of January recorded a 13% increase to Rs. 47.8 billion, surpassing the figures of the corresponding period of the last year of Rs. 42.3 billion in 2004.

Export Development Board (EDB) Chairman, Rohantha Athukorala said the results are encouraging especially as the strategic sectors are continuing the upward trend in spite of the tsunami in late December.

The Central Bank too said yesterday that the export growth is expected to continue in 2005, benefiting mainly from the continuation of high global economic growth and expected better access of Sri Lanka's apparel exports to the EU market. The EDB Chairman said textiles and garments were up 6.5% to Rs. 23.6 Billion in January.

"Tea is up 11% to Rs. 6.3 billion with the tea packet segment increasing in exports by 16%. Eventhough rubber exports have reduced by 33% to 370 Million crepe rubber exports are up by 26% which is in line with the strategic decision of driving crepe rubber to the world market," he said.

He said the gem and jewellery sector has shown a growth of 54% to Rs. 3.3 Billion whilst export crops grew by 35% with cinnamon up by 13% and pepper a commanding 96% over the last year.

"With the FTA with Pakistan coming ahead, Sri Lanka has a greater opportunity in the spice market. Our vegetable exports have grown by 25%. However (fruits fresh or dried) have dropped by 49%. With the occupancy back on track at hotels in the Maldives Sri Lankan vegetable and fruit exports will bounce back from March 2005.

Woven fabrics dropped by 31% in exports. As predicted, fisheries sector is down by 28% eventhough Sri Lankan crab exports have grown by 13% compared to the previous year.

Overall coconut products were down by 17% with Kernel products depicting a de-growth of 39% but coconut by products have grown by 12% to Rs. 397 million is a significant achievement.

Food and Beverage exports are up 26% whilst wooden products have grown by 8% to 200 Million. Paper products exports are also up by 30% which is encouraging," the EDB Chairman said.