Exports increase by 17 per cent

Exports increased by 17.0 per cent, year-on-year, to US dollars 746 million. Industrial exports largely contributed to this growth with export earnings from food, beverages and tobacco; diamonds and jewellery; garments and textiles; rubber products; machinery and equipment; and petroleum products expanding.

However, the major impetus for export growth in recent months came from the agricultural sector, reflecting the impact of the surge in global food and energy prices. Agricultural exports continued to expand in May 2008 along with significant increases in earnings from tea and minor agricultural products.

The continuous increase in minor agricultural product exports backed by the higher performance of particularly cinnamon, cloves, fruit and vegetables, and betel leaves has been a noteworthy feature in relation to the agricultural sector in recent months.

Mineral exports including gems, which have a share of only approximately one per cent in total exports, meanwhile, recorded a decline. Cumulative exports during the period January - May 2008 recorded a growth of 12.6 per cent, in comparison to the corresponding period last year, and amounted to US dollars 3,234 million.

Expenditure on imports in May 2008 increased by 24.2 per cent, on a year-on-year basis, and amounted to US dollars 1,258 million.

Imports of petroleum continued to dominate the behaviour of import expenditure, accounting for 58.3 per cent of the increase in import expenditure in May 2008, while food imports accounted for about 21.0 per cent of the year-on-year increase in expenditure on imports, mainly as a result of increased expenditure on wheat.

Investment goods imports also increased further and accounted for 5.5 per cent of the increase in import expenditure in May 2008. Cumulative expenditure on imports during the period January - May 2008 grew by 34.8 per cent when compared with the corresponding period last year, and amounted to US dollars 5,813 million.

Imports excluding petroleum grew by 25.1 per cent to US dollars 4,360 million for the first five-months of 2008.

The overall balance of payments recorded a surplus of US dollars 292 million by end-May 2008, and the gross official reserves amounted to US dollars 3,355 million by end May 2008, which was sufficient to finance around 3.2 months of imports.

External Trade Performance: May 2008 and January-May 2008
Category
Growth:			May	May	Growth-	Jan-May	Jan-May	
2007			2008	May	2007	2008	Jan.-May
US$ mn			US$ mn	(%)	US$ mn	US$ mn	(%)

Exports			637.3	745.9	17.0	2,872.9	3,233.5		12.6
Agricultural 		110.5	138.6	25.4	540.3	728.7		34.9
of which, tea		74.1	96.4	30.1	355.7	507.1		42.6
Industrial		510.4	597.8	17.1	2,266.5	2,438.6		7.6
of which, textiles
and garments		295.1	307.2	4.1	1,291.3	1,340.1		3.8
Mineral			12.7	9.5	-25.3	59.4	57.3		-3.5
Imports			1012.8	1258.0	24.2	4,311.4	5,812.8		34.8
Consumer goods		186.8	238.3	27.6	838.3	1,151.0		37.4
Intermediate Goods	600.9	777.3	29.4	2,428.8	3,374.2		38.9
of which, petroleum	194.3	337.2	73.6	826.7	1,452.3		75.7
Investment goods	223.2	236.7	6.0	997.7	1,250.0		25.3
Balance of Trade	-375.5	-512.2	36.4	-1,438.6 -2,579.2	79.3