Export performance in 2023

Sri Lanka’s total exports reached US$ 14.94 Bn in 2023 including merchandise exports (US$
11.85Bn) and estimated service exports (US$ 3.08 Bn).It is only a 0.39 % decline when compare to
the value recorded in previous year ( US$ 14.99 Bn).Estimated increase in service exports is around
63%.

Sri Lanka's Export Performance in December 2023

Sri Lanka’s merchandise exports decreased by 11.25% to US$ 947.5 Million in December 2023
compared to December 2022 as per the provisional data released by the Sri Lanka Customs. Also, it is
a 5.16 % decrease when compared to the value recorded in November 2023.

However the exports of Apparel and Textile recorded the highest in the year in December 2023
showing a positive sign of regaining its momentum.

The Figure 1 shows the comparison of Monthly Merchandise Export Performance 2020 –2023.

Figure 1: Monthly Merchandise Export Performance 2020 –2023

1,400

1,200

1,000
US$ Mn

800

600

400

200
2020 2021 2022 2023
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sources: CBSL, SL Customs

Major Exports in December 2023

a) Products & Services with Positive Growth (Increases)

Export earnings from tea which made up 12% of merchandise exports, increased by 3.57 % y-o-y to
US$ 111.12 Mn in December 2023 compared to December 2022. This increase is mainly due to the
strong performance in the export of Tea packets & Tea bags, increased by 10.95% and 142.37%
respectively in December 2023 compared to December 2022.

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In addition, Export earnings from Rubber and Rubber Finished products have increased by 6.92 % y-
o-y to US$ 79.62 Mn in December 2023, with the strong performance in exports of Pneumatic &
Retreated Rubber Tyres & Tubes (18.43 %).

On monthly analysis, export earnings of Coconut based products increased by 2.02 % in December
2023 compared to December 2022. Moreover, export earnings of Coconut kernel products and
Coconut shell products increased by 9.07 % and 3.53 % respectively in December 2023 compared to
December 2022.

Export earnings from Coconut Oil, Coconut Cream and Liquid Coconut Milk which are categorized
under the Coconut kernel products increased by 9.17 %, 41.38 % and 22.27 % respectively in
December 2023 compared to December 2022.

Earnings from Activated Carbon, which is categorized under the Coconut shell products increased by
4.6 % to US$ 11.5 Mn in December 2023 compared to December 2022.

Export earnings from Spices and Essential Oils increased by 0.1 % to US$ 31.42 Mn in the month of
December 2023 compared to month of December 2022. This increase was mainly driven by a
significant increase in the export of Cinnamon by 13.75 %.

Export earnings from Seafood increased by 11.64 % to US$ 23.79 Mn in December 2023 compared to
December 2022. This increase was mainly due to the strong performance in export of Fresh fish
(74.58 %) and Shrimps (49.74 %).

Furthermore, the estimated value of ICT exports is expected to increase by 33.3 % to US$ 112.9 Mn
in December 2023 when compared to December 2022. Also, the value of Transport & Logistics
services exports is expected to increase by 107.4 % in December 2023 compared to the corresponding
period in the previous year.

b) Products with Negative Growth (Decreases)

Export earnings from Apparel & Textile have decreased by 8.64 % y-o-y to US$ 438.78 Million in
December 2023 compared to December 2022.

In addition, export earnings from the Electrical & Electronics Components decreased by 18.56 % y-o-
y to US$ 34.97 Mn in December 2023 with poor performance in exports of Insulated Wires and
Cables (-17.43%), Electrical Transformers (-34.75 %) and Other Electrical & Electronic products (-
22.63%).

Export earnings of Coconut fiber-based products decreased by 14.65% in December 2023 compared
to December 2022. Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith &
Moulded products which are categorized under the Coconut fibre products, decreased by 14.94 % to
US$ 8.48 Mn in December 2023 in comparison to December 2022.

Export earnings from Food & Beverages have decreased by 16.16 % y-o-y to US$ 29.21 Million in
December 2023, with the negative performance in exports of Animal feed (-49.16 %).

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Moreover, export earnings from Ornamental fish decreased by 4.69 % to US$ 2.03 Mn in December
2023 compared to December 2022.

Exports during the period of January – December 2023

Cumulative merchandise exports during the period of January to December 2023, decreased by 9.54
% to US$ 11,856.3 Million compared to the corresponding period in 2022.

a) Products & Services with Positive Growth (Increases)

Earnings from export of Tea, Spices & Concentrates, Electronics & Electronic Components and Food
& Beverages increased by 4.06 %, 7.42 %, 0.62 % and 0.37 % respectively during the period of
January – December 2023 compared, in comparison to the corresponding period of 2022.

Earnings from export of Tea increased y-o-y by 4.06 % to US$ 1,390.9 Mn in the period of January to
December 2023. This increase was mainly due to the strong performance in export of Tea packets
(10.95 %).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 7.42 % to US$ 397.78
Mn in the period of January to December 2023. This increase was due to the strong performance in
exports of Pepper (18.65 %), Cloves (116.01 %) and Nutmeg & Mace (14.01 %).

Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 0.62 %
to US$ 486.66 Mn in the period of January to December 2023 compared to the corresponding period
of 2022. This increase was due to the strong performance in exports of Printed Circuits (52.37 %),
Switches, Boards & Panels (3.78 %) and Boilers/ Piston Engines/ Pumps & Vacuum Pumps (639.88
%) in the period of January to December 2023 compared to the corresponding period of 2022.

The estimated value of ICT exports is expected to increase by 13.2 % to US$ 1,259.6 Mn in the
period of January to December of 2023 compared to the corresponding period in 2022. In addition,
Construction, and Transport & Logistics services exports are forecasted to increase in the period of
January to December 2023 compared with the corresponding period of 2022.

b) Products with Negative Growth (Decreases)

Earnings from export of Apparel & Textile have decreased by 18.02 % to US$ 4,864.53 Mn during
the period of January to December 2023 compared to the same period in 2022. Further, earnings from
export of Apparel declined by 19.01 % and export of Textiles declined by 5.9 % in January to
December 2023.

In addition, export earnings from Rubber & Rubber finished products decreased by 8.66 % to US$
930.24 Mn in January – December 2023 compared to the same period in 2022 attributed to declined
exports of Industrial & Surgical Gloves of Rubber (-23.67 %) and Pneumatic & Retreated Rubber
Tyres & Tubes (-1.1 %).

Export earnings of Coconut & Coconut based products decreased by 13.27 % to US$ 708.7 Mn
during January – December 2023 compared to the last year. Earnings from all the major categories of

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Coconut based products decreased in the period of January – December 2023 compared with the
corresponding period of 2022 due to the poor performance in export of Coconut Oil (-10.93 %),
Desiccated Coconut (-21.74 %), Coconut Milk Powder (-4.11 %), Coconut Cream (-1.72 %), Liquid
Coconut Milk (-1.90 %), Cocopeat (-14.82 %) and Activated Carbon (-15.5 %).

Further, export earnings from Seafood decreased by 2.52 % to US$ 262.24 Mn during the period of
January to December 2023 compared to year 2022 due to the poor performance in Frozen Fish (-4.74
%), Shrimps (-21.58 %) and Crabs (-21.22 %).

Table 1 shows the comparison of Merchandise export performance in December 2023 and January to
December 2023 in comparison to the corresponding period in 2022.

Table 1: Comparison of Product-wise Merchandise Export Performance

Values in US$ Mns
Jan-Dec Jan-Dec % Growth Dec Dec % Growth
Exports of Goods
2022 2023 (22-23) 2022 2023 (22-23)
Apparel & Textile 5,933.52 4,864.53 -18.02 480.28 438.78 -8.64
Tea 1,258.81 1,309.90 4.06 107.29 111.12 3.57
Rubber-based 1,018.40 930.24 -8.66 74.47 79.62 6.92
Coconut-based 817.09 708.70 -13.27 54.86 55.97 2.02
Diamond, Gems & Jewelery 399.77 388.16 -2.90 30.75 17.88 -41.85
Electronics & Electronic
483.65 486.66 0.62 42.94 34.97 -18.56
Components
Spices and Concentrates 370.30 397.78 7.42 31.39 31.42 0.10
Processed Food & Beverages 426.39 427.97 0.37 34.84 29.21 -16.16
Seafood 269.02 262.24 -2.52 21.31 23.79 11.64
Ornamental Fish 21.74 26.38 21.34 2.13 2.03 -4.69
Vegetables 27.80 29.19 5.00 2.34 2.58 10.26
Fruits 38.78 43.26 11.55 4.00 3.42 -14.50
Other Export Crops 92.42 91.30 -1.21 2.79 3.04 8.96
Flowers & Foliage 14.66 15.01 2.39 1.16 1.28 10.34
Boat Building 17.40 78.50 351.15 0.19 0.76 300.00
Petroleum Products 283.23 372.04 31.36 30.32 13.49 -55.51
Others 1,633.42 1,424.44 -12.79 146.54 98.14 -33.03
Total Merchandize Exports 13,106.40 11,856.3 -9.54 1,067.6 947.5 -11.25
Sources: CBSL, SL Customs

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export markets of Sri Lanka, France has shown a strong performance in both the
month of December 2023 as well as the period of January to December 2023 compared to the
corresponding period in 2022. Furthermore, UAE and Italy have shown significant performance
during the same period.

United States of America remained a key export destination for Sri Lanka, absorbing 23% of Sri
Lanka’s merchandise exports in 2023. Exports to United States of America, Sri Lanka’s single largest
export destination, decreased by 0.96 % to US$ 253.74 Mn in December 2023 compared to November

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2022. Further, exports to United States of America decreased by 16.91 % to US$ 2,758.57 Mn during
the period of January to December 2023 compared to the same period in 2022.

Table 2 shows the comparison of Merchandise export performance of top 15 export markets in
November 2023 and January to December 2023 compared to corresponding period in 2022.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations

Values in US$ Mns

Jan-Dec Jan-Dec % Growth Dec Dec % Growth
Destination
2022 2023 (22-23) 2022 2023 (22-23)
1 United States 3,319.85 2,758.57 -16.91 256.20 253.74 -0.96
2 United Kingdom 966.04 846.16 -12.41 79.12 72.33 -8.58
3 India 854.88 829.70 -2.95 64.97 53.70 -17.35
4 Germany 744.57 587.40 -21.11 59.84 57.61 -3.73
5 Italy 640.18 679.05 6.07 50.36 47.01 -6.65
6 Netherlands 428.27 343.47 -19.80 40.61 37.01 -8.86
7 Canada 361.44 293.21 -18.88 24.07 24.24 0.71
8 UAE 345.82 357.09 3.26 30.67 27.95 -8.87
9 Belgium 307.68 221.45 -28.03 20.83 16.21 -22.18
10 France 257.52 304.95 18.42 15.80 19.50 23.42
11 Australia 254.40 226.51 -10.96 20.92 18.74 -10.42
12 China 253.11 257.73 1.83 20.84 19.69 -5.52
13 Japan 226.30 188.76 -16.59 19.36 14.58 -24.69
14 Bangladesh 217.54 173.87 -20.07 23.46 11.91 -49.23
15 Mexico 190.30 182.77 -3.96 14.37 17.97 25.05
Others 3,738.50 3,605.61 -3.55 326.18 255.31 -21.73
Total 13,106.40 11,856.30 -9.54 1,067.60 947.5 -11.25
Sources: CBSL, SL Customs

Exports to FTA Partners (India & Pakistan)

a) December 2023

In December 2023, exports to India & Pakistan constituted 6.5% of the total merchandise exports,
experienced a notable 19.19 % decrease to reach US$ 57.94 Mn, compared to December 2022.
Further, exports to India and Pakistan recorded a decrease of 17.35 % and 36.85 %, respectively,
during the month of December 2023 compared to December 2022.

The negative performance of India was driven by lower exports of Animal feed (-43.99%) and
Petroleum oil (-76.92%), while Pakistan's negative performance was led by decreased exports of betel
leaves.

b) January - December 2023

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Exports to India & Pakistan accounted for 7.2% of total merchandise exports decreased by 3.21 % to
US$ 904.39 Mn during the period of January to December 2023 compared to the corresponding
period of previous year.

Exports to India and Pakistan decreased by 2.95 % and 6.06 % respectively during the period of
January to December 2023 when compared with the corresponding period in 2022.

The negative export performance of India was driven by lower export of Animal feed (12.92 %),
while Pakistan's negative performance was led by decreased export of Sheet rubber and Other article
of stones.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports during the month of December 2023 and during
the period of January to December 2023 compared to 2023.

Table 3: Comparison of Region wise Merchandise Export Performance

Values in US$ Mns
% %
Jan-Dec Jan-Dec Dec Dec
Region Growth Growth
2022 2023 2022 2023
(22-23) (22-23)
United States 3,319.85 2,758.57 -16.91 256.20 253.74 -0.96
European Union (EU)
3,038.59 2,711.93 -10.75 239.25 226.05 -5.52
excluding UK
South Asia 1,261.36 1,192.75 -5.44 103.33 79.48 -23.08
ASEAN 998.34 995.00 -0.33 92.74 72.53 -21.79
CIS Countries 301.91 324.79 7.58 22.86 25.98 13.65
African Countries 374.13 327.95 -12.34 44.40 23.19 -47.77
Middle East Countries
248.85 239.87 -3.61 19.53 18.24 -6.61
(excl. Cyprus & Egypt)
Others 3,563.37 3,305.44 -7.24 289.29 248.29 -14.17
Total Merchandise
13,106.40 11,856.30 -9.54 1,067.60 947.5 -11.25
Exports

Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports during the month
of December 2023 decreased by 5.52 % y-o-y to US$ 226.05 Mn. Further, exports to the European
Union (EU) decreased by 10.75 % y-o-y to US$ 2,711.93 Mn during the period of January to
December 2023 compared to the corresponding period of previous year.

Exports to the top five EU markets were recoded as; Italy US$ 679.05 Mn (increased by 6.07 %),
Germany US$ 587.4 Mn (decreased by 21.11 %), Netherlands US$ 343.47 Mn (decreased by 19.8 %),
France US$ 304.95 Mn. (increased by 18.42 %) and Belgium US$ 221.45 Mn (decreased by 28.03 %)
during the year 2023 in comparison to 2022.

Export of Services

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The estimated value of services exports for the period of January to December 2023 was US$ 3,080.9
Mn, increasing 63.1 % over the corresponding period in 2022. The services exports estimated by EDB
consists of ICT/BPM, Construction, Financial services and Transport & Logistics.

Policy & Strategic Planning Division

29.01.2024