Financial Times

Sri Lanka’s export growth momentum continues
Sri Lanka’s growth momentum of exports continued in June 2005 with the Central Bank saying exports grew by 12.1% to US$ 514 million in June 2005 from US$ 459 million in the same 2004 month. Exports earnings during the first half of 2005 grew by 1 1.5 % to US $ 2,906 million, a Central Bank statement said.

Imports continued to grow as well, following the higher growth recorded in May 2005. Total imports grew by 18% in June 2005 to US$ 815 million from US$ 691 million recorded in June 2004. Petroleum imports accounted for a 92% increase of this increase in total imports reflecting the impact of high petroleum prices in the international market.

During the first half of 2005 import expenditure increased by 10.3%, amounting to US$ 4,118 million and 51% of this increase was accounted by the rise in petroleum imports.

Industrial goods, the largest export category, grew by 12.8% to US$ 407 million in June 2005 due to high growth in exports of food, beverages and tobacco products, textiles and garment products as well as rubber based products. Food, beverages and tobacco products increased over twofold to reach US$ 29 million compared with US$ 12 million in June 2004.

Agricultural exports grew by 9.2% to US$ 96 million in June 2005 compared to US$ 88 million in June 2004. Tea exports, which accounted for 10.7% of overall export growth increased by 9.6%, with exports amounting to US$ 68 million in June 2005, compared to US $ 62 million in June 2004.

Expenditure on imports in June 2005 grew by 18%. Intermediate goods imports increased by 28.4% from US$ 408 million in June 2004 to US$ 523 million in June 2005 due to the increases in imports of petroleum and chemicals, the Central Bank said.

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