Sri Lanka’s export sector has achieved significant growth, with the combined value of goods and services exports surpassing $10 billion in the first eight months of 2024(Export Earnings). This marks a steady year-on-year (YoY) growth of nearly 6%, demonstrating the resilience of the country’s export sector despite various global challenges. The Sri Lanka Export Development Board (SLEDB) announced these positive results, highlighting the continued expansion of both merchandise and services exports during this period.
Merchandise Exports Rise by Over 5%
From January to August 2024, merchandise exports reached an impressive $8.44 billion, reflecting a 5.37% YoY increase. This growth has been driven by strong performances in key sectors such as apparel, textiles, tea, rubber products, and electronics. The August 2024 merchandise export earnings alone stood at $1.16 billion, representing a 4.18% increase compared to the same month last year.
The apparel and textiles sector played a particularly important role in this growth, contributing over $500 million in August 2024. This milestone was achieved after a two-year gap, marking a strong comeback for one of Sri Lanka’s most important export sectors. The consistent performance in this area helped boost overall merchandise exports during this period.
Services Exports Grow by 7.58%
In addition to merchandise exports, Sri Lanka’s services sector also saw a notable increase in export earnings. The estimated value of services exports for the first eight months of 2024 reached $2.24 billion, reflecting a 7.58% YoY growth. Services exports include key industries such as information and communication technology (ICT), business process management (BPM), financial services, construction, and transport and logistics.
In August 2024 alone, services exports brought in $318.77 million, marking a 6.49% YoY increase. This sector’s consistent growth has further solidified Sri Lanka’s position as a competitive provider of services in the global market, with ICT/BPM continuing to be a leading contributor to overall service export earnings.
Total Export Earnings Top $10.68 Billion
When combined, the total export earnings from both merchandise and services for the period from January to August 2024 reached $10.68 billion. This represents a 5.82% YoY growth, highlighting the overall positive trajectory of Sri Lanka’s export sector.
The strong performance in August 2024 contributed significantly to this total, with combined earnings from goods and services exports reaching $1.48 billion for the month. This figure represents a 4.6% growth compared to the same month in 2023, reflecting the steady progress being made in Sri Lanka’s export landscape.
Key Sectors Driving Export Growth
Several key sectors have been instrumental in driving Sri Lanka’s export growth in 2024. The apparel and textiles sector, which saw earnings surpass $500 million in August 2024, has been a major contributor to the overall increase in merchandise exports. After a challenging period, the sector’s resurgence has provided a much-needed boost to the country’s economy.
In addition to apparel and textiles, the tea industry, known for its high-quality Ceylon tea, continues to perform well, contributing significantly to export earnings. Other key sectors include rubber products, electronics, and coconut-based products, all of which have shown positive growth trends during the first eight months of the year.
On the services side, the ICT/BPM sector has emerged as a key driver of growth, with global demand for Sri Lanka’s IT services and business process outsourcing continuing to rise. Financial services and transport and logistics have also contributed to the increase in service export earnings.
Future Outlook for Sri Lanka’s Exports
The steady growth in both merchandise and services exports during the first eight months of 2024 is a positive indicator of the resilience and potential of Sri Lanka’s export sector. As global economic conditions improve and demand for Sri Lankan products and services increases, the country is well-positioned to continue expanding its export base.
The Sri Lanka Export Development Board (SLEDB) remains optimistic about the future of the country’s exports, with ongoing efforts to diversify the range of products and services offered to global markets. Initiatives to enhance the competitiveness of Sri Lankan exports, improve infrastructure, and strengthen trade partnerships are expected to contribute to further growth in the coming months.
Additionally, government policies aimed at supporting export industries, such as incentives for businesses in key sectors and efforts to reduce trade barriers, are likely to bolster the country’s export performance. These measures, combined with the continued resilience of the private sector, will play a crucial role in maintaining the upward trend in export earnings.
Conclusion
Sri Lanka’s export sector has shown remarkable growth in 2024, with total export earnings from both goods and services surpassing $10 billion in the first eight months of the year. The 5.82% YoY growth reflects the country’s ability to adapt to changing global conditions and leverage its strengths in key sectors such as apparel, textiles, ICT, and business process management.
As Sri Lanka continues to focus on expanding its export base and improving the competitiveness of its products and services, the future outlook for the country’s exports remains positive. With strong government support and a commitment to innovation and diversification, Sri Lanka’s export sector is well-positioned to achieve further growth in the years to come.
