Agricultural exports grew by 1.9 percent

TRADE: Export earnings recorded a decline of 14.8 per cent to US $ 440 million in January 2006 following an unprecedented high export earnings of US dollars 627 million in December 2005.

Agricultural exports led by tea, rubber and coconut grew by 1.9 per cent while industrial and mineral exports declined by 13.9 per cent and 11.5 per cent in January 2006. However, the growth momentum in export will prevail in 2006, The Central Bank External Trade Performance January 2006 report said.

Imports grew by 17.5 per cent to US dollars 680 million in January 2006 reflecting high imports of intermediate and investment goods. Intermediate goods led by inputs of raw materials for industries (textiles and diamond) grew by 10.8 per cent in January 2006.

Reflecting capacity expansion of domestic industries, investment goods, led by machinery and equipment, increased by 44.9 per cent in January 2006.

The expenditure on consumer goods declined by 11.1 per cent reflecting reduction of imports of food and beverages and other consumer goods. Expenditure on petroleum imports, which accounted for 15 per cent of overall imports increased by 4.3 per cent to US dollars 99 million in January 2006.

The trade deficit in January 2006 reached US dollars 240 million. Despite the widened trade deficit, the continuation of the growth in private remittances, which grew by 26 per cent to US dollars 213 million in January 2006, helped in containing the current account deficit.