Dec 06, 2012 (LBO) – Sri Lanka’s exports slipped 13.4 percent to 770.4 million US dollars in October from a year earlier, with tea being hit by Middle East tensions with apparel falling amid weak demand, the Central Bank said. “Given the slowing down of global demand, exports of industrial exports continued to decline by October 2012,” the Central Bank said.
“Earnings from exports of garments, which have a share of around 38 per cent in total export earnings, have made the largest contribution to the decline in earnings from industrial exports.
“The decline in earnings from exports of rubber products as well as gems including diamonds and jewellery also made a significant contribution to the decline in export earnings in October 2012.”
Exports of apparel had fallen 16.6 percent to 297.2 million US dollars in October and tea had fallen 9.6 percent to 187.5 million US dollars.
In the first ten months of the year exports had fallen 6.6 percent to 8,163 million US dollars.
Falling exports also reduce the money available to be spent on imports. But imports are also driven by spending power that comes from remittances which grew 17.6 percent to 7.5 billion US dollars in the first ten months and other foreig