Exports up 11.3%, imports by 13.5% in first 9 months
 

by Shirajiv Sirimane

Exports and imports in the first nine months of 2005 grew by 11.3% and 13.5% respectively over the corresponding period of last year.

Exports earning reached the second highest monthly value of $ 561 million in 2005 and recorded a growth of 2.2% in September 2005. This is over and above the 19% growth recorded in September 2004 according to an official of the Central Bank.

Agricultural exports dominated by tea led the overall growth in exports in September 2005. Cumulative exports for the first 9 months of the year grew by 11.3% from US $ 4,143 million in 2004 to US $ 4,611 million in 2005.

Tea smallholders who accounted for over 66 percent of the total production once again dominated the tea sector. Rubber exports and production too has increased, the official said. Imports grew at a significant high rate of 31.1% recording the highest ever-monthly value of US $ 862 million in September 2005. Of this, petroleum imports amounted to US $ 202 million, recording a growth of 84%.

Cumulative imports for the first nine months grew by 13.5% to US $ 6,488 million in 2005 from US $ 5,714 million in 2004, which includes petroleum imports of US $ 1,198 million, that grew by 40% compared with the petroleum imports of first 9 months of 2004.

The trade deficit in September 2005 recorded US $ 301 million. The cumulative trade deficit in the first nine months of 2005 reached US $ 1,876 million. In 2004 industrial exports preponderate in export earnings with a high share of 78 per cent, while agricultural exports account only for 19 per cent. The contribution to the growth in exports in 2004 was mostly from the industrial sector, which contributed 85 per cent. The comparative figure for agricultural exports was 16 per cent.

Agricultural exports grew by 10 per cent in 2004 reflecting the higher performance of the three major crops, tea, rubber and coconut. Tea was benefited by higher prices, while coconut registered a relatively higher volume and prices. By 7 per cent to US dollar 2.46 per.

Minor agricultural exports increased by 8 per cent in 2004 in sharp contrast to the 10 per cent decline in 2003. The growth was mainly supported by higher exports of cloves, vegetables, cinnamon and unmanufactured tobacco. This sector benefited from the Indian FTA.

Meanwhile imports grew by 20 per cent to US dollars 8,000 million in 2004, as against the 9 per cent growth in 2003, reflecting the impact of the economic expansion, the prolonged drought, the escalation of oil prices and the relatively low interest rate regime.

The economic expansion resulted in an increase in the imports of investment and intermediate goods, while the drought conditions led to an escalation of the imports of food items and petroleum products.