Earnings from exports in November 2021 recorded the highest monthly export value in history, while marking the sixth consecutive month of above US dollars 1 billion of exports. Meanwhile, import expenditure also increased at a higher rate in November 2021.
Gross official reserves stood at US dollars 1.6 billion as at end November 2021, excluding the 3-year bilateral currency swap facility amounting to CNY 10 billion (approximately US dollars 1.5 billion) between the People’s Bank of China (PBoC) and the Central Bank of Sri Lanka.
Reflecting the favourable impact of increased exports, the merchandise trade deficit narrowed to US dollars 553 million in November 2021 compared to US dollars 600 million in November 2020. Workers’ remittances declined in November 2021. Accordingly, workers’ remittances amounted to US dollars 271 million during November 2021, in comparison to US dollars 612 million in November 2020.
Tourist arrivals were recorded at 44,294 in November 2021, compared to 22,771 arrivals recorded in October 2021. Earnings from tourism are estimated at US dollars 120 million for the month of December 2021. On a cumulative basis, earnings from tourism are estimated at US dollars 261 million in 2021 compared to US dollars 682 million.
The deficit in the trade account narrowed to US dollars 553 million in November 2021, compared to the deficit of US dollars 600 million recorded in November 2020. In the meantime, the cumulative deficit in the trade account during January to November 2021 widened to US dollars 7,051 million from US dollars 5,446 million in the corresponding period of 2020.
Earnings from exports in November 2021 grew by 54.6 % over November 2020 to reach US dollars 1,211 million, and surpassed the previous highest value recorded in October 2021 (US dollars 1,200 million). Increases in earnings were observed across all main categories, while industrial exports mainly contributed to the expansion. Cumulative export earnings, which increased by 24.9% during January-November 2021 over the same period of the last year amounted to US dollars 11,345 million.
Earnings from the export of industrial goods increased by 56.6% in November 2021 compared to November 2020. Export of garments to all major markets improved. Earnings from the export of petroleum products increased with the increase in prices of bunker and aviation fuel and the increase in volumes of bunker fuel exports.
Total earnings from the export of agricultural goods in November 2021 increased by 46.9%, compared to November 2020. The export volume index and unit value index increased by 36.0% and 13.7%, respectively, on a year-on-year basis, in November 2021, indicating relatively higher contribution by export volumes to the increased export earnings.
Expenditure on merchandise imports increased by 27.5% to US dollars 1,765 million in November 2021, compared to US dollars 1,384 million recorded in November 2020.
Expenditure on the importation of consumer goods in November 2021 increased by 19.7 % over the month of November 2020 driven by the increases in expenditure on both food and non-food consumer goods amidst extremely low imports of personal use motor vehicles.
Expenditure on the importation of intermediate goods increased by 24.3% (y-o-y) in November 2021, driven mainly by fuel, textiles and textile articles, rubber and articles, and plastics and articles thereof.
Expenditure on the importation of investment goods increased by 40.2% in November 2021, Compared to the same month in 2020, due to substantial increases in all three types of investment goods, namely, machinery and equipment, building material and transport equipment. The import volume and unit value indices increased by 3.1% and 23.6%, respectively (y-o-y), in November 2021, implying that the increase in import expenditure in November 2021 was mainly driven by the price effect.
A marginal net outflow of foreign investment was recorded in the government securities market in November 2021. Meanwhile, the Colombo Stock Exchange (CSE) recorded a net outflow of US dollars 20 million in November 2021, resulting in a net outflow of US dollars 242 million during the eleven months up to November 2021.
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