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Exports,
imports suffer in June while trade deficit widens This was because
both exports and imports fell in dollar terms compared with the
performance in the same month last year, the Central Bank said last
week. Export earnings
fell by 23 percent against a decline of five percent experienced
in June 2001 while expenditure on imports too declined by nine percent
when compared with a decline of 25 percent last year. The bank said
export earnings during the first half of 2002 declined by 17 percent
while imports declined by 11 percent. The trade deficit during the
first half of the year widened by 11 percent to $ 863 million compared
with a deficit of $ 779 million recorded during the corresponding
period in 2001. "The recovery
in the importation of intermediate goods continued in June which
indicates potential growth in exports in the period to come,"
the bank said. Exports Textiles and
garment exports earnings declined by 32 percent to $163 million
in June because of a 23 percent drop in volumes and a 12 percent
drop in unit price. The decline
in textiles and garment exports was largely due to lower demand
from the US, UK, Canada and Germany. However, earnings from textiles
and garment exports were higher than that of May 2002 due to improved
prices. Average prices of textiles and garments showed an increasing
trend in May and June though they were lower than that of the corresponding
months of 2001. Earnings from
agricultural products declined by 12 percent due to a decrease in
the exports of tea, coconuts, cloves, vegetables and fruit. Rubber,
pepper, cinnamon, non-manufactured tobacco, nutmeg and mace and
betel leaf exports improved in June. Earnings from tea at $ 52 million
recorded a decline of 19 percent in June when compared with the
previous year due to lower prices and falling export volumes. In June, tea
exports fell by five million kilogrammes while the average price
of tea eased to $ 2.17 per kg from $ 2.22 per kg in June 2001. With
tea production of 26 million kilogrammes in June, the total tea
production saw an increase of 472,088 kilogrammes during the first
half of 2002. Imports Wheat imports
in June were lower due to accumulated stocks in May. However, lower
imports of chillies and dried fish in June are partly due to the
higher import duty applied on these products since March. The import
of non-food consumer goods rose by eight percent. Within this category,
motorcars and cycles recorded an increase of 108 percent over June
2001. Intermediate good imports increased by six percent due to
higher imports of textiles, diamonds, petroleum products, chemical
elements and compounds and dyes and colouring materials. This increase
was entirely attributable to a higher volume of imports as import
prices declined. The bank said expenditure on crude oil, paper and paperboards declined due to lower prices. Expenditure on investment goods declined by 16 percent in June with machinery and equipment imports showing an improvement while transport equipment and building materials showed declines over June 2001. DFCC
to fund power, solid waste disposal projects "The pipeline
of inquiries currently with the bank is also encouraging and includes
a few large projects for the power generation and solid waste disposal,"
the bank said in a statement on its first quarter results. Group profit
after tax for the first quarter ended 30 June 2002 rose 32 percent
to Rs. 268 million, from Rs. 203 million in April - June 2001, according
to non-audited figures. The post-tax
group profit comprises DFCC Bank's post-tax profit of Rs. 169 million,
Rs. 84 million undistributed profit of its associate company, Commercial
Bank, and Rs. 15 million from its subsidiaries, the bank said. "The gross
loan and lease portfolio has not grown during the current period,"
it said. "However, the undisbursed approvals of loans and leases
on 30th June 2002 was Rs. 4 billion." An 87 percent increase in other income and reduction in net provision for bad debts through recoveries of loans and leases previously provisioned, helped offset a 31 percent fall in the net interest income, the bank said. Indian
shirt hits Sri Lankan market Manufactured
by S & Y Mills Chennai, India, using the best Juki machines
from Japan and technologies such as thermo bond fusing, double line
stitching, "Special Editions" encompasses high quality,
durability, perfect design and comes in an eye-catching range of
checks, stripes and solids, according to company officials. Kishan Jain,
S & Y Managing Director, told reporters the company has an impressive
marketing arrangement in the Gulf through an appointed distributor
in Dubai. It is also available in Fiji and Nepal and it will be
launched in Australia and New Zealand shortly. Jain was confident
that 'Special Editions' would be a popular brand in Sri Lanka and
make its way into the wardrobes of Sri Lankan men. Trade and Consumer
Affairs Minister Ravi Karunanayake, while welcoming the company,
urged S & Y Mills to set up a garment factory in Sri Lanka to
make use of the facilities here. In this context he explained that
opportunities created under the FTA with India need to be exploited.
'Special Editions'
will be distributed through Sinwa Holdings Ltd and will be available
at leading clothes stores in Colombo like Hameedias and other stores
outside the capital. |
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