Sri Lanka’s earnings from exports increased in the first eleven months of 2024 while the import expenditure also increased in the same period, according to the Weekly Economic Indicators report of the Central Bank.
The report indicates that the export unit value declined along with the import unit value, but the former’s decline was steeper, thus hurting the terms of trade and widening the trade deficit.
The following are some excerpts from the report.
“Earnings from exports increased by 7.0 per cent (year-on-year) to US dollars 11,670 mn during the eleven months ending November 2024 as a result of increased earnings mainly from exports of petroleum products (104%), textiles and garments (3.9%), tea (8.8%), food, beverages and tobacco (20.0%), rubber products (8.9%), and coconut related products (21.3%), among others. Import expenditure increased by 10.4 per cent (year-on-year) to US dollars 16,917 mn during the eleven months ending November 2024, mainly due to higher imports of textiles and textile articles (18.6%), machinery and equipment (22.4%), chemical products (22.6%), and base metals (48.6%), among others.”
“Accordingly, the deficit in the trade account widened to US dollars 5,247 mn during the eleven months ending November 2024 from US dollars 4,414 mn in the corresponding period of 2023.”
“The export unit value index declined by 2.9 per cent, (year-on-year), in November 2024 mainly due to lower prices recorded in exports of industrial goods. The import unit value index in November 2024 declined by 1.0 per cent, (year-on-year), due to lower prices recorded in intermediate and investment goods. Accordingly, the terms of trade deteriorated by 1.9 per cent, (year-on-year) to 90.3 index points in November 2024.”
“On year-on-year basis, Colombo Consumer Price Index-based headline inflation remained in the negative territory for the fourth consecutive month, recording a deflation of 1.7 per cent in December 2024 compared to the deflation of 2.1 per cent in November 2024.”
“The Non-Food category recorded a deflation of 3.0 per cent, while Food category recorded an inflation of 0.8 per cent. Meanwhile, the CCPI based core inflation remained unchanged at 2.7 per cent in December 2024.”
“In November 2024, Purchasing Managers’ Index for Construction Industry, as reflected by the Total Activity Index, expanded on a month-on-month basis.”
“The total outstanding market liquidity was a surplus of Rs. 140.156 bn by 03rd January 2025, compared to a surplus of Rs. 148.272 bn by the end of the last week.”
“During the year up to 03rd January 2025, the Sri Lanka rupee depreciated against the US dollar by 0.2 per cent.”
“The net purchases by the CBSL from the domestic foreign exchange market amounted to US dollars 209.0 mn in December 2024.”
“The gross official reserves were provisionally estimated at US dollars 6,451mn as at end November 2024. This includes proceeds from the PBOC swap arrangement.”
(The Island)
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