Sri Lanka consumer durable imports slow in 2012: biz chamber

Feb 27, 2013 (LBO) – Growth in consumer electronics imports to Sri Lanka have slowed following a fall in the exchange rate and higher interest rates and China has increased its share, a business chamber has said. Sri Lanka’s Ceylon Chamber of Commerce said, machinery and mechanical appliances classified under chapter 84 of the international harmonized customs code system, grew 19 percent in 2012 slowing from a 66 percent growth in 2011.

Electronic machinery and equipment (HS code Chapter 85) increased 18 percent in 2012 slowing from a 57 percent increase in 2012.

The Ceylon Chamber said China’s market share grew to 34 percent in 2012 from 25 percent in 2011. India came in second place with 11 percent.

“Countries like Japan and Singapore, which used to be leading suppliers of these products have been steadily losing their market in Sri Lanka,” the Chamber said.

Sri Lanka experienced a large volume of unsustainable imports from mid 2011 due to an expansion during a balance of payments crisis which was largely triggered by state credit taken to subsidize imported energy.

From mid July to December 2012, Sri Lanka’s central bank injected 167 billion rupees of new money in to the banking syste