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Thursday April 18th, 2024

Sri Lanka plastics exports up 400-pct in September 2020 driven by PPE

ECONOMYNEXT – Sri Lanka’s exports grew 3.6 percent to 774.5 million dollars in September 2020 with apparel export falls made up by personal protective equipment exports of cloth, plastics and rubber, the central bank said.

Textiles and apparel exports fell 6.6 percent from a year earlier to 419.1 million dollars.

Rubber products exports rose 9.9 percent to 78 million US dollars.

Plastic exports grew 483 percent to 34.1 million dollars from 5.8 million dollars a year earlier.

“The segments that marked a notable increase included personal protective equipment products such as plastic clothing, masks and gloves..” the central bank said.

Sri Lanka is planning to ban plastics next year and the effect on inputs is unclear.

Agricultural exports were up 10.4 percent to 225.5 million dollars with tea up 3.3 percent to 225 million dollars and seafood up 1.8 percent to 16.2 million dollars.

Imports were down 10.9 percent to 1,524 million dollars.

Consumer goods imports were down 14.8 percent to 312 million dollars, dairy products picked up to 24.1 million dollars from 8.9 million, and sugar rose to 38 million dollars from 16.2 million.

Vehicle imports were 0.6 million down from 70.1 million dollars, pharma grew 15.5 percent to 56.4 million dollars, telecom devices were up 29 percent to 21 million dollars and home appliances were up 11 percent to 17 million dollars.

Intermediate goods were down 11.7 percent to 883.3 million dollars. Fuel was down 39 percent to 883 million dollars amid lower prices, textiles were down 16 percent to 208 million dollars, wheat and maize was up 99 percent to 60 million dollars.

Investment goods were down 5 percent to 374 million dollars with building material down 31 percent to 93 million dollars. Machinery and equipment was up 24.5 million dollars to 257 million dollars.

The trade deficit was down 10.9 percent to 1.5 million dollars.

In the nine months to September exports were down 17.1 percent to 7.4 billion dollars, imports were down 19 percent to 11.7 billion dollars and the trade deficit was down 4.3 billion dollars from 5.6 billion dollars last year.

A trade deficit is caused by spending earnings from remittances (exports of labour) and foreign borrowings (exports of debt), and other items like tourism which are outside the merchandise trade account. (Colombo/Nov09/2020)

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Sri Lanka’s discussions with bondholders constructive: State finance minister

ECONOMYNEXT – Sri Lankan authorities continue to engage all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations, State Minister of Finance, Shehan Semasinghe has said.

“It is standard practice, when a representative group of bondholders is formed, to entertain confidential discussions with such group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which make them a privileged interlocutor for Sri Lanka,” Semasinghe said on X (twitter).

“It is well understood that given the price sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.

“The cleansing statement, which was issued on the 16th of April, at the conclusion of this first round of confidential discussions with members of the Group, aims at informing the Sri Lankan people, market participants and other stakeholders to this debt restructuring exercise, about the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.

“As informed in this statement, confidential discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks both sides successfully bridged a number of technical issues enabling important progress to be made. Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner.

“The next steps would entail further consultation with the IMF staff regarding assessments of the compatibility of the latest proposals with program parameters. Following these consultations, we hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka’s EFF program.”

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Sri Lanka rupee weakens at 301.00/302.05 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 301.00/302.05 to the US dollar in the spot forex market on Tuesday, from 299.00/10 on Tuesday, dealers said. Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed at 11.90/12.05 percent up from 11.95/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent down from 12.10/15 percent.

A bond maturing on 15.07.2029 closed at 12.25/40 percent.

A bond maturing on 15.03.2031 closed at 12.30/50 percent. (Colombo/Apr17/2024)

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Sri Lanka Treasury Bill yields down across maturities

ECONOMYNEXT – Sri Lanka’s Treasuries yields were down across maturities at Wednesday’s auction with the 3-month yield moving down 7 basis points to 10.03 percent, data from the state debt office showed.

The debt office sold all 30 billion rupees of 3-month bills offered.

The 6-month yield fell 5 basis points to 10.22 percent, with 25 billion rupees of bills offered and 29.98 billion rupees sold.

The 12-month yield dropped 4 basis points to 10.23 percent with 18.01 billion rupees of bills sold after offering 23 billion rupees. (Colombo/Apr17/2024)

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