External earnings fell in July due to port strike

Export earnings fell marginally by 7.9 per cent to $516 million in July due to temporary disruption of movement of goods resulting from the labour unrest at the Colombo harbour, the Central Bank said.

Despite this interruption, agricultural exports led by tea, rubber and coconut grew by 7.4 per cent in July 2006. However industrial exports declined by 8.8 per cent, reflecting the reduction of exports of textiles, garments, food and beverages. Cumulative exports in the first seven months in 2006 grew by 6.1 per cent from $3,466 million in 2005 to $3,677 million in 2006.

Imports grew by 19.7 per cent to $862 million in July 2006 reflecting the increases in petroleum products, wheat grain and machinery and equipment, the Bank said. Imports of wheat grain wasn’t affected by the labour unrest at Colombo harbour as wheat cargo was handled at the Trincomalee harbour.

Imports of petroleum was also not affected as crude oil is directly distributed through harbour pipeline network. Petroleum imports which accounted for 24 per cent of total imports in July 2006 grew by 105.1 per cent due to low base effects in July 2005. In July 2005, crude oil was not imported as petroleum refinery was shut down for routine maintenance work. Excluding petroleum, imports grew only by 5.5 per cent in July 2006. Imports during the first seven months of 2006 grew by 20.2 per cent to $5,818 million.