Sri Lanka external trade expands in September: Central Bank

Nov 07, 2014 (LBO) – Sri Lanka's exports rose 0.5 percent, to 903 million US dollars in September 2014 from a year earlier with largest contribution from textiles and garments followed by coconut and printing industry products, official data showed.

Apparel exports grew 4.4 percent to 403.8 million US dollars in September 2014, the Central Bank said.
Exports of machinery and mechanical items had risen 17.6 percent to 32.1 million US dollars and rubber products had risen 6.1 percent to 82.4 million US dollars.

Agricultural exports grew 0.5 percent to 903.3 million US dollars with tea shrinked 4.8 percent to 133.6 million US dollars. Spices export also were down 32.5 percent to 27.4 million US dollars.

Imports grew 12.2 percent to 1,667.5 million US dollars with consumer goods up 56.9 percent including 88.2 percent growth to 97.0 million dollars of vehicles. Intermediate goods were down 5.1 percent to 870.7 million US dollars with fuel imports down 24.1 percent to 295.3 million US dollars.

Investment goods imports were up by 27.9 percent to 428.8 million US dollars with machinery and equipment down 10.1 percent to 177.2 percent while transport equipment were up by 290.0 percent to 140.1 million US dollars and building materials up 9.4 percent to 11.3 million US dollars.

As the growth of imports weighed on the export earnings, the trade deficit widened to US dollars 764 million in September 2014, compared to US dollars 587 million in Septemebr 2013.

Trade deficits are caused when market participants in a country earn and spend money from selling abroad sources other than goods.

In September worker remittances (exports of labour) rose 3.1 percent to 575 million US dollars, and tourism earnings rose 16.8 percent to 152 million US dollars.
In the nine months to September exports up 13.0 percent to 8,288.2 million US dollars, imports up 5.4 percent to 14,222.3 million US dollars and the trade gap declined 3.6 percent.

Worker remittances rose 9.1 percent to 5,089.7 million US dollars in the nine months and tourism earnings rose 31.4 percent to 1,599.7 million US dollars.

Long term loans obtained by the government during the year to end September 2014 amounted to US dollars 1,232.5 million, compared to US dollars 1,307.0 million during the corresponding period in 2013.

Net inflows to the Government securities market from January to end September 2014 amounted to US dollars 4410.6 million, which comprised net inflows to Treasury bills and Treasury bonds amounting to US dollars 1,610.4 million and US dollars.

Foreign Investments in the Colombo Stock Exchange (CSE) recorded a net outflow of US dollars 9.5 million in September 2014 although, on a cumulative basis, foreign investment in the CSE stood at US dollars 107 million by end October 2014.

Inflows to Licensed Commercial Banks (LCBs) and Licensed Specialised Banks (LSBs) during the first nine months in 2014 amounted to US dollars 450 million.

http://www.lankabusinessonline.com/news/sri-lanka-external-trade-expands-in-september:-central-bank/1309914412

If we are to be a developed country, this labor providing revenue should shift to higher skill labour and more towards manufacturing. Textile and apparel revenue is good as long as we have strong companies directly selling the end product to foreign buyers. Not act as outsourcing to provide labor only.