Financial Times

Lankan exports recover in June-2004
Sri Lanka's exports in June 2004 recorded a growth of 10 percent in US dollar terms reversing the negative growth of 11 per cent in May 2004, the Central Bank said in its routine report on exports and imports data.

Consequently, export earnings increased by 9.6 per cent to $2,606 million in the first half of 2004 from $2,378 million in the comparable period in 2003, an 18 per cent growth. Industrial exports, dominated by textiles and garments, continued to be the main contributor to this increase with a share of 82 per cent. Industrial exports increased by 10 per cent (to $2,020 million), agricultural exports grew by 14 per cent (to $503 million) and mineral exports grew by 56 per cent (to $63 million) in the first half of 2004.

In the first half of 2004, expenditure on imports increased by 21 per cent to $3,732 million, from $3,078 million in the first half of 2003, a 7 per cent growth. Consumer goods, intermediate goods and investment good imports increased by 8 per cent (to $758 million), 19 per cent (to $2,145 million ) and 50 per cent (to $813 million) respectively. The most noticeable factor was the significant performance of investment goods during the first half of 2004. Investment goods that posted a modest 2 per cent growth during the first half of 2003, increased by 50 per cent in 2004. High imports of passenger vehicles, tractors and accessories, motor vehicles for transporting goods and motor spare parts increased expenditure on transport equipment, while iron and steel, cement and asbestos contributed to higher imports of building materials.

As the increase in imports surpassed the increase in exports, the trade deficit expanded, to $1,126 million in the first half of 2004 compared to of $700 million in the first half of 2003. Increased foreign exchange from tourism, port related revenues and private remittances offset the increase in the trade deficit to some extent.

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