The Destinational Concentration Analysis (DCA) of Sri Lanka’s export markets revealed that over the years Sri Lanka has diversified its markets ‘gradually’.
The DCA index, developed by the Export Development Board (EDB), is a statistical parameter which serves as a measure of how dispersed a country’s exports are. Higher the index value, the less distributed are the export markets, and lower the index, the more widely distributed are the markets, states the Ministry of Industry of Commerce.
The DCA index which was at a high of 40.9 in 2002 fell to 34.1 by 2006, then 29.6 in 2009 and its improvement steadily continued to rest at 26.8 levels in both Y2010 and Y2011.
EDB also warned that when it comes to future projections of world markets and Sri Lankan product supply, “apparels and garment accessories” segment is faced with the challenge of becoming a ‘loser in a declining market’. Similarly, vegetables, fruits, plastics and electric and electronic items too emerged as potential ‘losers in a declining market’. On the other hand, there is surging global demand for coffee, tea, tobacco, seafood and rubber. “These export products need to be well supported and promoted” EDB officials stressed.