External trade performance for July

CB REPORT: Export earnings recorded a decline of 7.9 per cent to US dollars 516 million in July 2006 due to temporary disruption of movement of goods resulting from the labour unrest at the Colombo harbour in July 2006.

Despite this interruption, agricultural exports led by tea, rubber and coconut grew by 7.4 per cent in July 2006.

However, industrial exports declined by 8.8 per cent, reflecting the reduction of exports of textiles, garments, food and beverages.

Cumulative exports in the first seven months in 2006 grew by 6.1 per cent from US dollars 3,466 million in 2005 to US dollars 3,677 million in 2006, a Central Bank of Sri Lanka media release said.

Imports grew by 19.7 per cent to US dollars 862 million in July 2006 reflecting the increases in petroleum products, wheat grain and machinery and equipment. Imports of wheat grain was not affected by the labour unrest at Colombo harbour as wheat cargo was handled at the Trincomalee harbour.

Imports of petroleum was also not affected as crude oil is directly distributed through harbour pipeline network.

Petroleum imports which accounted for 24 per cent of total imports in July 2006 grew by 105.1 per cent due to low base effects in July 2005. In July 2005, crude oil was not imported as petroleum refinery was shut down for routine maintenance work.

Excluding petroleum, imports grew only by 5.5 per cent in July 2006. Imports during the first seven months of 2006 grew by 20.2 per cent to US dollars 5,818 million.

The trade deficit reached US dollars 347 million in July 2006. The cumulative trade deficit for the first seven months of 2006 increased to US dollars 2,140 million.

Private remittances grew by 24 per cent to US dollars 1,359 million during the first seven months of 2006, particularly containing the current account deficit.

However, overall balance of payments registered a surplus of US dollars 168 million by end July 2006.

The gross official reserves stood at US dollars 2,523 million (3.1 months of imports) by end July 2006.