Exports fall only marginally -Minister
Despite strong external developments, the 2012 first quarter exports
fell only marginally but more importantly, Sri Lanka continued to record
strong exports in March. “Amidst strong external developments such as
volatile global oil prices and global downturn, we reported only a
marginal 1.4% export drop and were not greatly affected as many other
countries but recorded $ 835.7 million in exports sector” said Rishad
Bathiudeen, Minister of Industry and Commerce of Sri Lanka.
Minister Bathiudeen announced this on May, 30 acknowledging the
latest external sector performance data released by the Central Bank of
Sri Lanka on the same day. The 2012 first quarter export data by the
Central Bank showed a marginal 1.4% negative growth in exports (at $
2.63 billon) in comparison to 2011 first quarter (at $ 2.67 billion).
“The depreciation of Rupee that began after 2011 November Budget’s
devaluation, followed by this February’s depreciation appear to have
warded off a drastic export revenue fall that equally affected the South
Asian region in March 2012 and could have possibly saved us. For
instance, Indian year on year exports in March fell by 5.7%,
Bangladesh's exports in March fell by 7.23% while Pakistan’s year on
year exports, according to their Bureau of Statistics, fell by 18.76% in
March 2012.
But Pakistan’s exports recovered in April” Minister Bathiudeen
revealed and added: “Even though our own industrial exports fell due to
lower earnings from exports of textiles and garments and petroleum
products, we believe that our apparel export fall was due to the overall
demand drop in our key markets of EU and US. The same pattern appears
for other South Asian apparels too. But I believe these minor deviations
would not affect our $ 12 billion export target for 2012.”
Although Sri Lanka’s textiles and garments earnings declined by
11.7%. in March 2012, it still continued to be the largest export earner
with $ 319 million in March 2012.
“Impact of oil import costs and rising energy costs are affecting
manufacturing bottom-line and as a result our international
competitiveness could to suffer” Minister Bathiudeen cautioned. |