Better export performance in November 2006

Export earnings in November 2006 grew significantly by 24.3 per cent to US$ 623 million reversing the negative growth recorded in the previous month, the Central Bank said.

Industrial exports, the largest contributor to this growth, increased by 21.6 per cent in November 2006 reflecting a strong performance in textiles and garments, diamond and jewellery and petroleum products.

Agricultural exports were benefited by higher performance of tea and rubber. The cumulative exports in the first eleven months of 2006 grew by 8.0 per cent from US$ 5,719 million in 2005 to US$6,179 million in 2006.

Imports also grew by 15.7 per cent to US$875 million in November 2006, reflecting high growth in consumer and investment goods. The growth in consumer goods was dominated by sugar, wheat, personal motor vehicles and other consumer durables. Imports of investment goods increased by 20.1 per cent reflecting higher imports of transport equipment, machinery and equipment and building materials.

Imports of intermediate goods declined mainly due to lower imports of petroleum products and textiles. Petroleum products declined by 10.7 per cent in November 2006. Imports during the first eleven months of 2006 grew by 15.8 per cent to US$9,386 million.

The trade deficit reached US$252 million in November 2006 and the cumulative trade deficit for the first eleven months of 2006 increased to US$3,207 million. Private remittances grew by 20 per cent to US$2,106 million during the first eleven months of 2006, particularly containing the current account deficit.

The overall balance of payments registered a surplus of US$172 million and the gross official reserves stood at US$2,503 million (3 months of imports) by end November 2006.