ECONOMYNEXT – Sri Lanka’s exports fell 11.88 percent from a year ago to 951.5 million US dollars in September 2023, with apparel exports plunging 24.6 percent, amid a slowdown in Western markets, data from the island’s export promotion office shows.
Apparel and textiles fell 24 percent to 361.8 million US dollars, Sri Lanka’s Export Development Board said.
Falling export shipments can slow a recovery by reducing domestic value generation compared a year earlier but will also reduce imports, as money for workers and export firms to spend of imports also reduces.
Coconut based products were down 2.37 percent to 64.3 million US dollars, diamond and jewellery was down 32 percent to 38.5 million, electronics were down 9.4 percent to 38.8 million US dollars and spices were down 6.9 percent to 38.8 million US dollars.
Tea exports were up 1.8 percent to 119.96 million dollars, seafood grew 50 percent to 28.1 million US dollars.
There is reduction of money printing in the US and EU, which is reducing both the volumes and prices of traded goods.
The Fed drove inflation to 40 year high by delaying to put the brakes on its money printing, claiming the inflation in 2021 was driven by supply chain shocks, regressing into classical Mercantilism.
Exports to United States of America, Sri Lanka’s single largest export destination, fell 26.28 percent to 202.1 million dollars in September. Exports to the US from January to September were down 19.67 percent.
Exports to India were up 11.3 percent to 79.68 million US dollars.
Total exports from January to September 2023 were down 10.3 percent to 8,961.62 million dollars. (Colombo/Oct25/2023)