Financial Times

Exports, following the strong growth of 22 per cent in April, grew further in May 2006 at 13.6 per cent at a value of US dollars 509 million, the Central Bank said last week.

It said improved growth was backed by a strong performance of tea, rubber, textiles and garments, food and beverages and rubber based products. Cumulative exports in the first five months increased by 5.8 per cent. Imports grew by 37.1 per cent to US dollars 938 million in May reflecting the increases in intermediate, consumer and investment goods, which grew by 42.4 per cent, 31.2 per cent and 27.7 per cent, respectively.

The growth of the intermediate good imports was led by petroleum and textiles imports. The imports of investment goods increased reflecting higher growth in imports of machinery and equipment and building material.

Consumer good imports consisted mainly of sugar, wheat and motor vehicles. Imports in the first five months of 2006 grew by 21.6 per cent to US dollars 4,015 million.

Expenditure on petroleum imports, which accounted for 19 per cent of overall imports increased by 54.1 per cent to US dollars 822 million in the first five months of 2006, the Bank said.

The trade deficit reached US dollars 429 million in May 2006 while the cumulative trade deficit for the first five months of 2006 increased to US dollars 1,485 million. Private remittances grew by 26 per cent to US dollars 994 million during the first five months of 2006, containing the current account deficit. The overall balance of payments registered a surplus of US dollars 148 million by end May 2006. The gross official reserves excluding liabilities due to the Asian Clearing Union stood at US dollars 2,531 million (3.2 months of imports) by end May 2006.