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Cumulative export earnings over the first six months of 2010 grew only 13.7 percent while expenditure on imports rose by 42.1 percent, the External Sector Performance report released today for June 2010 showed.
Higher earnings from the industrial and agricultural exports contributed to a 23 percent growth in export earnings of US$ 697 million in June 2010 but expenditure in all major categories of imports also increased by 32 percent to US$ dollars 1.114 million.
Exports of apparel and rubber products to US and European markets increased the export earnings in June.
Earnings from textiles and garments exports increased by 24 percent to US$ 305 million in June and exports to the United States increased by 34 percent while 8 percent increase was recorded for the European Union.
The European Union withdrew its GSP+ tariff concession to Sri Lanka from August 15. The move is expected to reduce the export earnings from Europe in the months to come.
According to the Central Bank earnings from exports of rubber products increased by 110 percent to US$ 52 million while earnings from agricultural exports, especially in tea exports accounted for 24 percent of export earnings in June 2010.
The rise in crude oil prices has contributed significantly to the increase in expenditure of imports.
The reduction in import duties on motor vehicles and electronic items by the government has lifted the import volumes of these items contributing to the expenditure on consumer goods.
Workers' remittances grew by 13.54 percent in the first half of 2010 over the same period last year bringing in US$ 1.82 billion.
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