Tuesday, July 6, 2010

Export earnings rise in April External Sector Performance - April 2010:

Earnings from exports and expenditure on imports have grown significantly on a year-on-year basis in April 2010, the Central Bank said yesterday.

Earnings from exports grew 24.2 percent in April 2010 to US$ 543 million led by higher earnings from industrial and agricultural sectors.

Expenditure on imports increased by 55.8 percent to US$ 967 million in April 2010.
Accordingly, the trade deficit stood at US$ 424 million in April 2010.

The cumulative earnings from exports and expenditure on imports have increased during the first four months by 10.7 percent to US$ 2,307 million and 42.9 percent to US$ 4,192 million respectively.

The largest contribution to the growth in exports in April was from the industrial sector, led by a significant increase in exports of machinery and equipment.

This comprised mainly of transport equipment such as boats and bicycles electrical equipment such as transformers, static converters, inductors and insulated cables.

Earnings from exports of rubber products, petroleum products and diamond and jewellery have also performed well.

Export earnings from textiles and garments have increased marginally to US$ 227 million in April 2010 after seven consecutive months of year-on-year declines. Earnings from food, beverages and tobacco exports have declined by 7.3 percent mainly due to lower exports of fresh and frozen fish.

Agricultural exports, which accounted for 24.4 percent of export earnings in April 2010, increased year-on-year, reflecting the sound performances by the tea, rubber coconut and minor agricultural sectors, as they continued to gain higher prices in the international market. In line with the higher oil prices in the international market, the average export price of natural rubber increased by 126.7 percent, year-on-year, from US$ 1.39 per kg in April 2009 US$ 3.16 per kg in April 2010.

However, the rubber supply was affected by the unfavourable weather conditions in April 2010.
All major categories of imports increased in April 2010, reflecting higher demand. Expenditure on imports of intermediate goods increased led by higher petroleum and fertilizer imports. Import price of crude oil averaged at US$ 85.02 per barrel in April 2010 reflecting an increase of 56.1 percent over US$ dollars 54.45 per barrel in April 2009. Expenditure on imports of consumer goods increased by 63.6 percent, due to higher expenditures incurred on imports of sugar, milk products and other food items.

Following the upward trend in milk product prices in the international market, the expenditure on import of milk products increased by 258.6 percent in April 2010.

Expenditure on investment goods increased in April 2010, led by higher imports of transport equipment, particulary motor cycles, followed by machinery and equipment such as electrical equipment and printing machinery.

During the first four months of 2010, workers' remittances increased by 14.5 percent over that of the corresponding period of 2009 to US$ 1,199 million.

The gross official reserves, with and without Asian Clearing Union (ACU) funds, increased to US$ 5,440 million and US$ 5.215 million, respectively, by end April 2010.

Based on the previous 12 months average imports of US$ 955 million per months, the gross official reserves, without ACU funds, were the equivalent of 5.5 months of imports.

source - www.dailynews.lk

No comments: