Earnings from exports increased by 7 per cent to US dollars 760 million in August, recording the highest monthly value thus far in 2010, stated the Central Bank yesterday (28) issuing 'External Sector Performance – August 2010'.

Including the proceeds of the Sovereign Bond issued in September 2010, the gross official reserves, (without Asian Clearing Union (ACU) funds) increased to US dollars 6.8 billion by 25 October 2010, the Bank further said.

Cumulative earnings from exports during the first eight months of 2010 increased by 11 per cent to US dollars 5,040 million compared to the corresponding period of 2009, the Bank said.

It also said that the largest contribution to the growth in exports in August 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 electrical transformers, static converters, inductors and insulated cables.

Earnings from exports of rubber products and petroleum products have also performed well. However, earnings from exports of food and beverages, textiles and garments, diamond and jewellery and other industrial products declined on a year-on-year basis. At US dollars 309 million, earnings from the textiles and garments sector recorded the highest earnings thus far, during the year. Earnings from food, beverages and tobacco exports have declined by 17 per cent mainly due to the lower exports of fish.

Earnings from agricultural exports, which accounted for 23 per cent of total exports, increased in August 2010 led by higher earnings from exports of rubber and minor agricultural products, which continued to fetch premium prices in the international market. Rubber prices rose by 81 per cent to US dollars 3.27 per kg compared to the same period of 2009. Earnings from minor agricultural exports increased by 21 per cent mainly due to the higher prices fetched by cardamoms and cocoa products.

There were also significant increases in the export volumes of tobacco, cardamoms, sesame seeds and cashew nuts. The average price of tea, however, declined marginally to US dollars 4.29 per kg in August 2010. Earnings from coconut exports also declined, in terms of value as well as volumes, compared to August 2009.

During the first eight months of 2010, workers’ remittances increased by 12.9 per cent to US dollars 2,479 million over that of the corresponding period of 2009.