Export earnings increase upto May

Workers’ remittances up by 13.3 percent:

Sri Lanka’s external sector performance improved in May 2010 reflecting enhanced trade and higher remittances.

Export earnings from January to May increased by 11.6 percent and import expenditure increased by 42.4 percent. The trade deficit during this period expanded to US $ 2,351 million.

Year-on-year earnings from exports grew by 15.1 percent in May 2010 to US $ 620 million while expenditure on imports also increased by 35.8 percent to US $ 1,051 million the Central Bank said yesterday.

Earnings from agricultural exports increased by 7.9 percent to US $ 153 million in May 2010, led by the higher prices of agricultural commodities in the international market.

Earnings from minor agricultural exports grew by 19.4 percent supported by the better performances by vegetables, fruits, aerecanuts, pepper, cloves and essential oil exports.

Industrial exports increased by 17.1 percent to US $ 458 million led by rubber and petroleum products. Earnings from the textiles and garments sub sector increased by 10.8 per cent to US$ 263 million while the food and beverages and the machinery and equipment sub sectors also performed well in May.

During the first five months of 2010, workers’ remittances increased by 13.3 percent over that of the corresponding period of 2009 to US $ 1,498 million. All major categories of imports increased in May. The largest contribution to this increase was from the intermediate goods followed by the consumer goods.Expenditure on imports of intermediate goods increased mainly due to the higher crude oil prices. Expenditure on other petroleum products, chemicals and fertilizer also increased over the preceding year.

Non-food consumer goods increased mainly due to the higher imports of motor cars and motorcycles. Within the investment goods category, imports of transport equipment and building materials increased sharply, the Central Bank said.