Continuing the increasing trend observed since the withdrawal of the GSP+ scheme in August 2010, earnings from textile and garments exports increased by 121.9 per cent to US dollars 385 million in January 2011, depicting a 143.5 per cent increase to EU and 95.8 per cent increase to USA Central Bank stated in its 'External Sector Performance – January 2011' report.

Earnings from exports in January 2011 increased by 72.4 per cent year-on-year, to US dollars 813 million led by significant increases in exports of textile and garments and rubber products. In comparison to January 2008, exports have increased by 47.3 per cent, the Central Bank said.

Expenditure on imports increased by 21.3 per cent to US dollars 1,501 million in January 2011, mainly due to increases in imports of motor vehicles, electrical equipment and transport equipment. Accordingly, the trade deficit in January 2011 contracted by 10.2 per cent, year-on-year, to US dollars 688 million, the Bank further said.

Exports of rubber products increased by 118.7 per cent, year-on-year, reflecting higher levels of domestic value addition, particularly in the form of solid tyres and rubber gloves. Other key categories of industrial exports such as food, beverages and tobacco, machinery and equipment and petroleum based products also performed well in January 2011, the Bank said.

Earnings from agricultural exports grew by 28.9 per cent to US dollars 184 million in January 2011, recording a healthy growth in all major sub sectors mainly due to higher prices. The average export prices of tea and rubber remained high at US dollars 4.79 per kg and US dollars 4.89 per kg, respectively.

Expenditure on imports of intermediate goods increased by 15.7 per cent, to US dollars 812 million in January 2011. The average import price of crude oil increased by 22.6 per cent to US dollars 95.33 per barrel in January 2011, though import volume declined.

Imports of textiles increased by 55.2 per cent in January 2011, indicating a better outlook for the garment industry. Expenditure on fertilizer imports also increased in January 2011, mainly due to higher import volumes. Expenditure on imports of consumer goods increased significantly during the month of January 2011 led by non-food consumer goods, particularly, motor vehicles and electrical equipment.

Import expenditure on food and drink also increased with the upward trend in food prices of sugar, wheat grain and milk products in the international market. All sub categories of investment goods imports increased in January 2011.

During January 2011, workers’ remittances increased by 20.1 per cent to US dollars 377 million over that of 2010.