Textile and garment exports rebounded by 8.5 per cent, year-on-year, recording US dollars 324 million in August 2009, recording the highest earnings by the sector during the year, the Central Bank said.

Sri Lanka exports down 6.7 percent in August from a year earlier were showing a steady month on month rise with a recovery seen in the key apparel sector.

Food and beverages and other industrial exports were also improving where tea exports had grown 2.8 percent in August from a year earlier, with high prices. The average export price had reached 4.34 US dollars a kilo in 2009.

Total exports in August were 710 million, and had been growing from April, reported LBO quoting the Central Bank.

"It is expected that exports will continue to increase during the remaining months of 2009 and in 2010, notwithstanding the uncertainties on the continuation of GSP+ concessions," the Central Bank said.

Weakening Euro and Sterling, may help Sri Lanka, further stated the Central Bank. The Sri Lanka rupee is pegged to the US dollar at 114.80/90 levels.

But textile and clothing imports, which are used as inputs for apparel exports, increased by 7.7 per cent to 120 million in August, US dollars pointing higher apparel exports in coming months.

Imports for August were 826 million US dollars was down 34.6 percent while In the eight months to August imports had fallen 35.2 per cent to 6,179 million US dollars against 2008, reported LBO.