Surge in export earnings

Earnings from exports surged by 19.2 per cent in September 2007 and reached US$ 725 million, the Central Bank said yesterday.

Agricultural exports grew by 35 per cent bolstered by a 39.9 per cent growth in tea, as a result of both improved prices and higher volumes, the Bank said.

Prices of tea, which have been on an increasing trend from early 2007, increased further, pushing the average price of tea to US$ 3.37 per kg in September.

Industrial exports, which grew by 16.6 per cent, were supported by textiles and garments, food and beverages, diamond and jewellery and rubber based products.

The cumulative export earnings in the first nine months of 2007 were US dollars 5,651 million, recording a growth of 12.6 per cent over the corresponding period last year. Expenditure on imports increased by 24.9 per cent, year-on-year, to US$ 1,006 million in September 2007.

An increase in the volume coupled with a significant increase in prices raised the imports of petroleum and fertilizer, which had lagged in recent months, raising the expenditure on imports of intermediate goods.

The declining trend in the import of motor vehicles for personal use observed in the recent past continued further.

Investment goods imports, which grew with marked increases in building materials, transport equipment and machinery and equipment, are likely to continue on a high growth path, with the implementation of several infrastructure projects by the Government.