Earnings from exports grew by 24.2 per cent in April 2010 to US dollars 543 million led by higher earnings from the industrial and agricultural sectors, stated the Central Bank (CB), with reference to Sri Lanka’s External Sector Performance in April.

The cumulative earnings from exports and expenditure on imports have increased during the first four months by 10.7 per cent to US dollars 2,307 million and 42.9 per cent to US dollar 4,192 million respectively, it further said.

'The largest contribution to the growth in exports in April was from the industrial sector, led by a significant increase in exports of machinery and equipment. This comprised mainly of transport equipment such as boats and bicycles and electrical equipment such as transformers, static converters, inductors and insulated cables', CB states.

Earnings from exports of rubber products, petroleum products and diamond and jewellery have also performed well. Export earnings from textiles and garments have increased marginally to US dollars 227 million in April 2010 after seven consecutive months of year-on-year declines, the Bank added.

Earnings from food, beverages and tobacco exports have declined by 7.3 per cent mainly due to lower exports of fresh and frozen fish. Agricultural exports, which accounted for 24.4 per cent of export earnings in April 2010, increased year-on-year, reflecting the sound performances by the tea, rubber, coconut and minor agricultural sectors, as they continued to gain higher prices in the international market.

In line with the higher oil prices in the international market, the average export price of natural rubber increased by 126.7 per cent, year-on-year, from US dollars 1.39 per kg in April 2009 to US dollars 3.16 per kg in April 2010. However, the rubber supply was affected by the unfavorable weather conditions in April 2010.

All major categories of imports increased in April 2010, reflecting higher demand. Expenditure on imports of intermediate goods increased led by higher petroleum and fertilizer imports.

Import price of crude oil averaged at US dollars 85.02 per barrel in April 2010 reflecting an increase of 56.1 per cent over US dollars 54.45 per barrel in April 2009. Expenditure on imports of consumer goods increased by 63.6 per cent, due to higher expenditures incurred on imports of sugar, milk products and other food items.

Following the upward trend in milk product prices in the international market, the expenditure on import of milk products increased by 258.6 per cent in April 2010. Expenditure on investment goods increased in April 2010, led by higher imports of transport equipment, particularly motor cycles, followed by machinery and equipment such as electrical equipment and printing machinery.

During the first four months of 2010, workers’ remittances increased by 14.5 per cent over that of the corresponding period of 2009 to US dollars 1,199 million.

The gross official reserves, with and without Asian Clearing Union (ACU) funds, increased to US dollars 5,440 million and US dollars 5,215 million, respectively, by end April 2010. Based on the previous 12 months average imports of US dollars 955 million per month, the gross official reserves, without ACU funds, were the equivalent of 5.5 months of imports, the Central Bank stated.