SL export earnings slide in March, declining trends continue
View(s):Export earnings fell in March by 2.8 per cent from the same month in 2012, continuing a trend seen over several months in the Sri Lankan economy.
The Central Bank (CB), releasing the latest monthly data said March earnings fell due to earnings from industrial exports, which account for about three fourths of total export earnings, declining.
However, earnings from textiles and garments, which account for more than a half of industrial exports in value terms, recorded a further increase of 5 per cent, year-on-year, in March 2013, following the increase recorded in the previous month. Exports of garments to the US increased in March too while exports of garments to the European Union.
The CB said earnings from agricultural exports increased by 0.5 per cent, year-on-year, in March.
Expenditure on imports declined by 16.8 per cent, year-on-year, in March. While expenditure on all three major categories of goods imported, viz. consumer goods, intermediate goods and investments goods, declined in March 2013, a decline in expenditure on imports of crude oil and refined petroleum products led the decline in import expenditure, the CB data showed.
With expenditure on imports falling during the first three months of 2013 and earnings from exports also easing, the deficit in the trade balance for the first quarter of 2013 contracted on a year-on-year basis.
The CB said there were substantial inflows of foreign investments to Government securities, with net inflows to Treasury bills and Treasury bonds in March amounting to US$ 33.5 million compared to a net inflow of $6.8 million in March 2012. Long-term loans obtained by the Government amounted to $428 million during the first quarter of 2013, while more inflows are expected to materialise during the rest of the year.
The CB said gross official reserves amounted to $6,689 million while total international reserves, which include gross official reserves and foreign assets of commercial banks amounted to $8,121 million.
By end April 2013, gross official reserves are estimated to have increased to $6.9 billion, which is equivalent to around 4.5 months of imports, the statement said.
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