Total exports fell 11.6 percent to 491 million dollars in January 2009 mainly because of lower agricultural export earnings, the bank said in a statement on the island's trade performance.

Imports fell 40.5 percent to 699 million dollars owing to lower oil prices and lower spending on investment and consumer goods.

"Both the agriculture and industrial sectors, which were affected by the decline in commodity prices, contributed to the reduction in growth in export earnings," the bank said.

"The lower demand emanating from the global economic downturn also had an impact on the export volumes."

The decline in agricultural exports, contributed to more than 50 percent of the decline in exports in January 2009.

The prices of tea and rubber fell by 9.7 percent and 45.9 percent.

"However, the performance in the exports of textiles and garments is encouraging as it grew by 4.5 percent, despite reduced external demand," the central bank said.

Overall, industrial exports declined by 5.2 per cent to 385 million US dollars in January 2009 from a year ago.

Expenditure on imports declined by 40.5 percent to 699 million dollars in January, 2009.

Lower petroleum imports accounted for more than 40 percent to this decline.

The average price of crude oil imports declined by 55 percent to 41.71 dollars a barrel in January, 2009, from 92.71 dollars a barrel in January 2008.

Expenditure on investment and consumer goods also declined by 42.1 percent and 23.6 percent in January 2009.

"The current trend in external trade is likely to prevail throughout a greater part of 2009, in response to the deepening global economic crisis," the central bank said.

Private remittances fell 6.6 percent to 256 million dollars in January 2009 from a year ago.

"A considerable part of remittances are denominated in UK pounds, euro, Australian dollar and Korean won, all of which have depreciated sharply against the US dollar, contributing to the decline in remittances in US dollar terms."

The central bank said remittances in January have been 123 percent of the trade deficit, easing the pressure on the current account balance.

It said that because of these developments, both current and expected, the 100 percent margin deposit requirements on certain non-essential imports imposed in October 2008 were removed.

The margin of 200 percent on certain categories of motor vehicles was reduced to 100 percent.

"This trend is expected to continue throughout the year, leading to much lower trade and current account deficits in 2009, easing the pressure on the foreign exchange market."