Export earnings fell by 1.9 % to US$654.6 million in June 2008 against earnings in the same month in 2008 due to falling earnings from some industrial exports, namely, food and beverages; garments and textiles; and machinery and equipment, the Central Bank said.

However the cumulative earnings from exports during January-June, 2008 recorded an increase of 9.8% and amounted to US$3,888 million since earnings from agricultural exports increased by 34.6 %, year-on-year, given the significant increase in commodity prices in international markets and the premium prices fetched by ‘Ceylon Tea’ in key markets.

The Bank said agricultural exports are expected to continue to perform better, in terms of volumes as well as prices, and industrial exports are expected to rebound from the one-off decline in June.
Imports in June 2008 amounted to US$1,159 million, up by 39.4 % but non-oil imports amounting to US$819 million, recorded a slower growth of 16.9 %. Expenditure on imports is expected to be lower during the rest of the year, as the petroleum prices continue to ease, the Bank said. Fertilizer and diamonds were among the other intermediate imports that increased in June, 2008.