Earnings from exports reached a level of US dollars 952 million, an increase of 19.1 per cent, compared with corresponding month of August 2010 stated the Central Bank yesterday (24) issuing 'External Sector Performance – August 2011 ' report.

Earnings from tourism grew at a healthy rate of 49 per cent to US dollars 522 million during the first eight months of 2011 compared to the corresponding period of 2010, the report said.

The exports growth in August was mainly driven by industrial exports where significant contributions came from textiles and garments, rubber products and food and beverages, the Bank added.

Earnings from exports of textiles and garments increased by 18.4 per cent while rubber products continued to record a high growth rate of 47.4 per cent. Exports of food, beverages and tobacco increased considerably by 51.1 per cent in August 2011 where significant contributions came from tinned and bottled fruits, salted fish and animal fodder exports. Exports of diamond and jewellery increased by 45.3 per cent. Agricultural exports increased by 14.4 per cent, where minor agricultural exports reported higher earnings, the Bank further said.

For the first eight months of 2011, the cumulative earnings from exports and expenditure on imports have increased by 28.6 per cent to US dollars 6,966 million and 50.6 per cent to US dollars 12,926 million, respectively. As a result, the trade deficit stood at US dollars 5,960 million.

The expansion in exports of services and increased inward workers’ remittances helped contain the impact of the widened trade deficit on the current account. Cumulative inflows on account of workers’ remittances grew at 27.2 per cent to US dollars 3,381 million during the first eight months of 2011.

Gross official reserves, excluding Asian Clearing Union (ACU) balances, increased to US dollars 8,051 million by end August 2011 from US dollars 6,610 million by end 2010. The improved macroeconomic environment, relaxation of exchange control regulations to attract foreign capital to the private sector and inflows to the government for infrastructure development projects contributed towards strengthening the country’s external reserve position to this level, the Bank said.

Total external reserves, which includes gross official reserves and foreign assets of commercial banks, also increased to US dollars 9,293 million by end August 2011 from US dollars 8,034 million by end 2010.

For full report please visit:

http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20111024e.pdf