April exports plunge to lowest in two years

[First Guy]

* Apparel exports down by 2%
* Export of tea declines for seventh consecutive month
* Dip in seafood exports persists since October 2014

Country’s exports in April plunged to their lowest level in two years, widening the trade deficit further despite modest growth in imports.

According to Central Bank data released yesterday, exports in April amounted to $ 708 million, the lowest monthly figure after April 2013 and down by 7.4% from a year earlier.

“The reductions recorded in exports earnings from tea, petroleum products, seafood, rubber products and textiles and garments respectively contributed for the drop in exports during the month,” the Central Bank said.
On a cumulative basis, export earnings during the first four months of 2015 declined marginally by 0.3%, year-on-year, to $ 3.57 billion.

In April, tea exports, which were severely affected by the lower demand from Russia and Middle East, declined for the seventh consecutive month in April 2015, recording a drop of 12.7% over the corresponding month of 2014.

Tea exports to Russia and the Middle East declined by 39.0% and 5.5% respectively, during the first four months of 2015 compared to the corresponding period in 2014. Earnings from petroleum product exports declined by 42.7%, year-on-year, in April 2015 as a result of around 40% price reduction and 6.6% volume drop recorded in bunker fuel exports.

Sea Food exports which dropped continuously from October 2014, declined further in April 2015, recording a 41.2% reduction compared to the corresponding month in 2014 mainly due to a 68.3% decline in seafood exports to the EU market, the main seafood market of Sri Lanka.
Sea food exports from Sri Lanka to the EU market were banned with effect from 13 January 2015.

In line with the significantly low raw rubber prices prevailing in the international market, exports of rubber products also declined significantly by 16.2% in April 2015, reflecting a noteworthy decline in the export of rubber tyres. Export earnings from textiles and garments, which account for 46.7% of total exports, declined by 2.0% during the month reflecting a reduction in exports to the EU market.

According to the Central Bank, in the first four months the leading markets for merchandise exports were the USA, UK, India, China and Germany accounting for about 51% of the total exports

Central Bank also said despite the lower expenditure on imports of petroleum products, total import expenditure in April 2015 increased by 3.2% to $ 1,490 million mainly due to lower imports recorded in April 2014.

The growth in imports was led by personal motor vehicles, followed by machinery and equipment and transport equipment.
Import expenditure on fuel declined by 32.8% to $ 213 million in April 2015, due to non-importation of crude oil during the month and about 38.5% decline recorded in the international prices of refined petroleum products.

Furthermore, the import expenditure on wheat and maize also declined significantly due to 83.9% decline in volume of wheat imports, compared to higher imports recorded in April 2014. Higher expenditure on personal vehicle imports, particularly motorcars which increased by more than 90%, contributed mainly for the increase in imports.

Machinery and equipment imports, the second largest contributor for the import growth, increased by 23.6% during the month, mainly due to higher imports of engineering equipment. Imports of transport equipment increased by more than 100%, contributing significantly to the growth in imports.

On a cumulative basis, expenditure on imports during the first four months of 2015 increased marginally by 1.5%, year-on-year, to $ 6,283 million led mainly by consumer goods imports followed by investment goods imports.

During the period from January to April 2015, the main import origins were India, China, Japan, UAE and Singapore accounting for about 61% of the total imports.

The deficit in the trade account in April 2015 widened by 15.1% to $ 783 million in comparison to $680 million in April 2014. On a cumulative basis, trade deficit during the first four months of 2015 increased by 3.9% to $ 2.7 billion.

- See more at: http://www.ft.lk/article/437961/April-exports-plunge-to-lowest-in-two-years#sthash.9XH9EMJ6.dpuf

[yellow knifeTop contributor]

Other than rubber export the rest is due to Geo Political instability created by loving JATHYANTHARAYA..

Its high time for the world to find new world order and rise against the unjust in international trade..

If Russians and Iranians can afford let them buy SL Tea.. Thats called free trade.. If Europeans prefer SL Tuna let them enjoy the right of free trade..

These so called JATHYANTHARAYA never help a country to develop economically nowadays.. Best examples are Libiya and Iraq.. Iraq was invaded saying that American Intelligence has found evidence for nuclear weapons... What a damage they did to this poor country..? Where is social Justice? Where is free trading rights?

Why SL suffers economically? Why not so called JATHYANTHARAYA sympathetically look at the country that they have turned upside down politically?

Ranil's era is almost like JRJs era.. We could not end war as we used to believe America will safeguard us..

History repeat with poor international relationships again.. We give up the same nations that supported us to end the war and cling into the JATHYANTHARYA that never help a country to come up progressively..

[LeonTop contributor]

I don't know how our FM Hon.RK is going to stabilize USD/RS @ 130.00 with this sort of scenario.

[LeonTop contributor]

Good one YK. +

[HAL9000Top contributor]

Other than rubber export the rest is due to Geo Political instability created by loving JATHYANTHARAYA..

Its high time for the world to find new world order and rise against the unjust in international trade..

If Russians and Iranians can afford let them buy SL Tea.. Thats called free trade.. If Europeans prefer SL Tuna let them enjoy the right of free trade..

These so called JATHYANTHARAYA never help a country to develop economically nowadays.. Best examples are Libiya and Iraq.. Iraq was invaded saying that American Intelligence has found evidence for nuclear weapons... What a damage they did to this poor country..? Where is social Justice? Where is free trading rights?

Why SL suffers economically? Why not so called JATHYANTHARAYA sympathetically look at the country that they have turned upside down politically?

Ranil's era is almost like JRJs era.. We could not end war as we used to believe America will safeguard us..

History repeat with poor international relationships again.. We give up the same nations that supported us to end the war and cling into the JATHYANTHARYA that never help a country to come up progressively..

How should we re align our foreign policy, What are you suggestions?
, Did the MR regime foreign policy do any favour for SL ?. When did we lose our GSP +, Fish exports, ? why we didnt attract sizable FDIs in post war period ? Can we re - align a foreign policy in over night or within a short periods? Will stand against Western or China do any good for us ?, Does even Russia manage to survive with westerm sanctions and pressure, so What can a small island like us can do ? There are plenty of questions more to be asked and answered about the ideal foreign policy.

[yellow knifeTop contributor]

Major Importers of capital 200-2012

[BackstageTop contributor]

Other than rubber export the rest is due to Geo Political instability created by loving JATHYANTHARAYA..

Its high time for the world to find new world order and rise against the unjust in international trade..

If Russians and Iranians can afford let them buy SL Tea.. Thats called free trade.. If Europeans prefer SL Tuna let them enjoy the right of free trade..

These so called JATHYANTHARAYA never help a country to develop economically nowadays.. Best examples are Libiya and Iraq.. Iraq was invaded saying that American Intelligence has found evidence for nuclear weapons... What a damage they did to this poor country..? Where is social Justice? Where is free trading rights?

Why SL suffers economically? Why not so called JATHYANTHARAYA sympathetically look at the country that they have turned upside down politically?

Ranil's era is almost like JRJs era.. We could not end war as we used to believe America will safeguard us..

History repeat with poor international relationships again.. We give up the same nations that supported us to end the war and cling into the JATHYANTHARYA that never help a country to come up progressively..

How should we re align our foreign policy, What are you suggestions?
,  Did the MR regime foreign policy do any favour for SL ?. When did we lose our GSP +, Fish exports,  ? why we didnt attract sizable FDIs in post war period ? Can we re - align a foreign policy in over night or within a short periods? Will stand against Western or China do any good for us ?, Does even Russia manage to survive with westerm sanctions and pressure, so What can a small island like us can do ? There are plenty of questions more to be asked and answered about the ideal foreign policy.

Easy peasy. For starters Appoint Jayantha Dhanapala as Foreign Minister in next cabinet. Chris Weeramanthri and Palitha Kohona as advisers. Kadirgama Institute to set up think tank to formulate long term policy.

[yellow knifeTop contributor]

Major Exporters of Capital 2000-2012

[yellow knifeTop contributor]

Its worth studying the two countries China and Japan which did not depend on foreign loans , aids or FDIs develop their countries...

[yellow knifeTop contributor]

A good suggestion Backstage

[BackstageTop contributor]

A good suggestion Backstage

Thanks YK.

Its not rocket science to figure out what needs to be done, to put this one horse town in order. Sri Lanka has less problems than one large city in India. And we have brilliant capable people. To make a long story short, can the wise and intelligent confront and stare down the brutish imbeciles who have taken control of this country at all levels. If not, we will have to trundle along merrily while our economy and natural assets keep depleting away. Ohnge kiwwah.

[yellow knifeTop contributor]

We have to develop a culture of confronting ideas among intellectuals and not party politics

When USA became independent there were two confronting views

Jefferson represented the view that agriculture should dominate the economy and there should be less bank influence

Alexander Hamilton being the first treasury secretary confronted and said agriculture should not be privileged over manufacturing and banking sector should be strengthened to create credit...

Confronting of ideas is popular in China 

Let a hundred flowers bloom: let a hundred schools of thought contend is a famous quotation by Mao


Even long before him there were 120 schools of thoughts among Buddhist clergy being debated in China (Source.. Debt of David Graber)


After Mao , Deng Xiaopeng was fighting to model China after Singapore ..and Deng won...


What we see in SL is fighting intellectuals who say MR is good over Ranil and vise versa..

[BackstageTop contributor]

Saadhu , Saaadhu, Saaaaaadhu !

[NC`Top contributor]

Thanks FG & YK...