Sri Lanka Exports Up and Tade Deficit Widens

06th October 2010, www.news360.lk

Sri Lanka’s trade deficit during the 1st 7 months has widened to 103% to stand at US$ 3.36 billion owing to the import bill which is rising higher than the export earnings.

Importation of consumer goods, intermediate goods and investments good all has increased during this period to incur an import bill of US$ 7.6 billion, which during the same period last year stood at just US$ 5.49 billion.

Petroleum imports has cost the country a bill of US$ 1.89 billion an increase of 77.6% compared to last years reference periods US$ 1 billion.

Motor vehicle imports too has seen a considerable increase during the period.

Meanwhile up to July, export earnings have gone up by 11.4% to earn a sum of US$ 4.28 billion.

Earnings from Agricultural products has seen the biggest increase of 23.5% to contribute US$ 1.09 billion which tea exports along brought in US$ 746 million.

Earnings from tea have seen a growth.

The largest quantum of export earnings came from the industrial sector which has grown by 7.9% to earn a sum of US$ 3.13 billion.

However textiles and Garments which contributed US$ 1.76 billion for the overall industrial earnings has declined by 3.9% during the first 7 months of the year.

Meanwhile up to July this year the country’s worker remittances has increased by 12.5% to stand at US$ 2.14 billion.

The gross official reserves without the Asian Clear Union Funds stood at US$ 5.4 billion equivalent of 5.4 months of imports.