Exports grow in December

COLOMBO: Export earnings in December grew by 21.8 per cent reaching the highest ever monthly value of US dollars 625 million. Industrial exports dominated by textiles and garments, food and beverages and rubber based products led the overall growth in exports.

Cumulative exports in 2005 grew by 10.2 per cent from US dollars 5,757 million in 2004 to US dollars 6,345 million in 2005, the Central Bank said.

Imports declined by 6.6 per cent in December 2005 reflecting low imports of intermediate and consumer goods. Cumulative imports in 2005 grew by 10.8 per cent from US dollars 8,000 million in 2004 to US dollars 8,863 in 2005.

Cumulative expenditure on petroleum imports which attributed to 19 per cent of overall imports increased by 36.9 per cent to US dollars 1,655 million in 2005. Overall imports excluding petroleum increased only by 6.1 per cent in 2005 compared to the growth of 16.4 per cent recorded in 2004.

The trade deficit in December 2005 reached the lowest value of US dollars 130 million since January 2005.

However, cumulative trade deficit in 2005 expanded to US dollars 2,519 million compared to US dollars 2,243 million in 2004.

Despite the widened trade deficit, the overall balance of payment position was further strengthened as the surplus increased to US dollars 502 million by end December 2005 benefiting from increase in private remittances (26 per cent), of the debt moratorium and the Central Bank's purchase of the net proceeds of foreign currency loans mobilized by the government.

Consequently, the gross official international reserves increased from US dollars 2,196 million in December 2004 to US dollars 2,735 million in December 2005.