Export earnings rise

COLOMBO: Export earnings grew by 11.2 per cent to US $ 489 million in January, 2007, compared to US $ 440 million in January, 2006 the Central Bank said.

Industrial exports, the largest contributor, grew by 15.6 per cent, reflecting the higher growth in textiles and garments and food and beverage, Tea exports were affected by the reduced production due to labour unrest in the plantation sector in December 2006.

However, within the agricultural sector the increase in rubber and other agricultural exports were more than sufficient to offset the reduction in the export earnings from tea.

Imports in January 2007 grew by 15.8 per cent to US $ 788 million reflecting higher imports of both investment goods and consumer goods, Investment goods increased with the continuous expansion in construction and infrastructure projects in recent months.

Consumer goods increased mainly due to higher imports of food items supported by lower tariff. Intermediate goods imports increased only marginally due to lower imports of petroleum and fertilizer. Non importation of crude oil partly due to refinery's maintenance work led petroleum imports to decline by 45.5 per cent in January 2007.

The trade deficit increased to US $ 298 million in January 2007 compared to US & 240 million in January 2006.