Exporters’ Association of

Sri Lanka

Annual Report &

Accounts

2016 – 2017

EASL Annual Report 2016/2017 Page 1

OFFICE BEARERS 2016/ 2017

CHAIRMAN Mr. Harin De Silva Eastern Merchants Plc

(From February 2017 to July 2017)

Mr. Fazal Mushin Link Natural Products (Pvt) Ltd

(From July 2016 to February 2017)

VICE CHAIRMAN Mr. Chrisso De Mel Hayleys Plc

(From February 2017 to July 2017)

1st VICE CHAIRMAN Mr. Harin De Silva

Eastern Merchants Plc

(From July 2016 to February 2017)

2nd

VICE CHAIRMAN Mr. Chrisso De Mel Hayleys Plc

(From July 2016 to February 2017)

SECRETARIAT THE CEYLON CHAMBER OF COMMERCE

50, Nawam Mawatha, Colombo 2

TEL : +94 11 5588871

FAX : +94 11 2449352

EMAIL : easl@chamber.lk

WEBSITE : www.exporterssrilanka.net

EASL Annual Report 2016/2017 Page 2

MANAGING COMMITTEE 2016/2017

MEMBER COMPANIES

Company Name Main Representative Alternate Representative

A S Agri Exports (Pvt) Ltd Dr. A S Sabaratnam

AgStar Exports (Pvt) Ltd Mr. Kanishka Samaraweera Mr. Ruwan Marambage

Akbar Brothers (Pvt) Ltd Mr. T Sambasivam

C W Mackie PLC Mr. Nalin Jayasinghe

Ceylon Biscuits Ltd Mr. Jude Rubera Mr. Priyantha Bandara

Chemanex PLC Mr. Jayantha De Mel

Eastern Merchants PLC Mr. Harin De Silva

Expolanka (Pvt) Ltd Mr. Imdadh Marikar Mr. Mohamed Farzan

Hatton National Bank PLC Mr. Janath Illangantileke Mr. Shyam De Silva

Hayleys PLC Mr. Chrisso De Mel Mr. Nalaka Ratnayake

Hellmann Worldwide Logistics

(Pvt) Ltd Mr. Lalith Hennayake Mr. Wasantha Dias

Imperial Teas (Pvt) Ltd Mr. Wasantha Alutwela Mr. Kapila Jayasundara

Jafferjee Brothers Mr. Saifuddin Jafferjee Mr. Suminda Kumar

K I K Lanka (Pvt) Ltd

Mrs. Nadie Kahatapitiya

Algama Mr. Lakshan Algama

Link Natural Products (Pvt) Ltd Mr. Fazal Mushin Mr. Chanaka Gunathilake

Mackwoods Ltd Mrs. Nirmali Samaratunga

Meezan & Co. (Pvt) Ltd Mr. Azlie Irshad Mr. S Abdul Cader

Microcells Ltd Mr. Nilan Kanagarathnam Mr. Tharindu Ginige

Nidro Supply (Pvt) Ltd Mrs. Dawn Austin Mr. Channa Madawela

Saboor Chatoor (Pvt) Ltd Mr. Gulam Chatoor Mr. Ejaz Chatoor

Shums & Company Pvt Ltd Mr. M H Talal Shums Mr. M Saheed Jiffry

Sri Lanka Export Credit

Insurance Corporation Mr. D H J Ranasinghe Mr. S M T Silva

Tea Tang (Pvt) Ltd Mr. Rohan P Daluwatte Mr. Suresh Rajendram

EASL Annual Report 2016/2017 Page 3

MANAGING COMMITTEE 2016/2017

MEMBER PRODUCT ASSOCIATIONS

PRODUCT ASSOCIATION REPRESENTED BY

1. Colombo Tea Traders‟ Association Mr. H D Hemaratne

2. Seafood Exporters Association of Sri Lanka Mr. Channa Weeratunga

3. Spices & Allied Products Producers Association Mr. Vernon Abeyratne

4. Sri Lanka Association of Manufacturers & Mr. Justin Seneviratne

Exporters of Rubber Products Mr. Lalith Jayawardena

5. Sri Lanka Gem & Jewellery Association Mr. Ajward Deen

Mr. Rizwan Nayeem

6. Sri Lanka Diamond Manufacturers Association Mr. Sanjaya Baid

7. Sri Lanka Fruit & Vegetable Producers,

Processors & Exporters Association Mr. S. Gnanaskandan

8. Sri Lanka Apparel Exporters Association Mr. Aziz Rumy

Mr. Athula Jayasundera

9. Colombo Rubber Traders Association No representative

10. Sri Lanka Association of Software Services Companies (SLASSCOM)

Mr. Rifdy Fahmy

Mr.Druvinda Jayamanne

11. Floriculture Produce Exporters Association Mrs. Ramya Weerakoon

(Until 06th

January 2017) Mr. Ruwan Rajapakse

EASL Annual Report 2016/2017 Page 4

MANAGING COMMITTEE 2016/2017

PAST CHAIRPERSONS

Mr. Fazal Mushin Link Natural Products (Pvt) Ltd

(Immediate Past Chairperson, from February 2017)

Mr. Rohan P. Daluwatte Tea Tang (Pvt) Ltd

(Immediate Past Chairperson, from July 2016 to February 2017)

Mrs. Dawn Austin Nidro Supply (Pvt) Ltd

Mrs. Nirmali Samaratunga Mackwoods Ltd

Mr. Deepal Chandrasekera Imperial Teas (Pvt) Ltd

Mr. A. S. M. Muzzamil Ceylon Foods (Pvt) Ltd

EASL Annual Report 2016/2017 Page 5

THE EXPORTERS’ ASSOCIATION OF SRI LANKA

MANAGING COMMITTEE 2016-2017

Standing from Left to right

Mr. Aziz Rumy (Sri Lanka Apparel Exporters’ Association), Dr. A S Sabaratnam (A S Agri

Exports (Pvt) Ltd), Mr. Kanishka Samaraweera (AgStar Exports (Pvt) Ltd), Mr. Janith Ilangatileke

(Hatton National Bank), Mr. Gnanskandan (Lanka Fruit & Vegetable Producers, Processors &

Exporters Association), Mr. Priyantha Bandara (Ceylon Biscuits Pvt Ltd), Mr. S Abdul Cader

(Meezan & Co (Pvt) Ltd), Mr. Ajward Deen (Sri Lanka Gem & Jewellery Association, Mr.

Suminda Kumara (Jafferjee Brothers), Mr. Nalaka Ratnayaka (Hayleys Plc), Mr. Channa Madawala

(Nidro Supply Pvt Ltd), Mr. Channa Weeratunga (Seafood Exporters’ Association of Sri Lanka),

Mr. Justin Seneviratne (Sri Lanka Association of Manufacturers & Exporters of Rubber Products),

Seated from Left to Right

Ms. Ushani Dassanayake (Ceylon Chamber of Commerce / EASL Secretariat), Ms. Nadie

Kahatapitiya (KIK Lanka Pvt Ltd.), Mr. T. Sambasivam (Akbar Brothers Ltd), Mr. Deepal

Chandrasekera (Past Chairman), Mr. Talal Shums (Shums & Company Pvt Ltd), Mr. Harin De Silva

(1st Vice Chairman EASL), Mr. Fazal Mushin (Chairman EASL), Mr. Chrisso De Mel (2

nd Vice

Chairman), Mr. Rohan P. Daluwatte (Immediate Past Chairman), Mrs. Dawn Austin (Nidro Supply

Pvt Ltd), Mr. A S M Muzammil (Past Chairman EASL), Ms. Manori Dissanayaka (Ceylon Chamber

of Commerce / EASL Secretariat)

EASL Annual Report 2016/2017 Page 6

Highlights of 2016/2017 AGM

HEAD TABLE:

Head Table: from left to right Mr. Talal Shums (Head AGM Sub Committee), Mr. Fazal Mushin

(Chairman EASL), Hon. Ravi Karunanayaka, Minister of Finance (Chief Guest & Keynote

Speaker, Mr. Samantha Ranatunga, Chairman, The Ceylon Chamber of Commerce (Guest of

Honour), Mr. Harin de Silva (1st Vice Chairman), Mr. Chrisso de Mel (2

nd Vice Chairman), Ms.

Manori Dissanayaka (Assistant Secretary General, CCC/EASL Secretariat)

Lighting the oil lamp

EASL Annual Report 2016/2017 Page 7

LIST OF MEMBER COMPANIES AS

AT 31ST

MARCH 2017

A A BAUR & COMPANY (PRIVATE) LIMITED

A F JONES (EXPORTERS) CEYLON LTD A F

A S AGRI EXPORTS (PVT) LTD

ADAMEXPO

ADAMJEE LUKMANJEE & SONS LTD

AGSTAR EXPORTS (PVT) LTD

AITKEN SPENCE EXPORTS LTD

AKBAR BROTHERS (PVT) LTD

ALLIANCE FINANCE CO PLC

ANSELL LANKA (PVT) LTD

ARISTON (PVT) LTD

B BANK OF CEYLON

BEIRA BRUSH PVT LTD

BOGALA GRAPHITE LANKA PLC

C

CEYLON BISCUITS LTD

CEYLON TEA MARKETING (PVT) LTD

CHAS P. HAYLEY & CO. (PVT) LTD

CHEMANEX PLC

CIC HOLDINGS PLC

COCOTANA COCONUT PRODUCTS

CONSOLIDATED BUSINESS SYSTEMS (PVT) LTD

D

DANKOTUWA PORCELAIN LTD

DELMEGE FORSYTH & CO. LTD

DIPPED PRODUCTS PLC

E E B CREASY & CO. PLC

EASTERN MERCHANTS PLC

EDINBOROUGH PRODUCTS (PVT) LTD

ESWARAN BROTHERS EXPORTS (PVT) LTD

EURO-SCAN EXPORTS (PVT) LTD

EXPACK CORRUGATED CARTON (PVT) LTD

EXPOLANKA (PVT) LIMITED

EXPOLANKA FREIGHT (PVT) LTD

F FINLAYS COLOMBO PLC

G GEORGE STEUART & CO. LTD

GLOBAL RUBBER INDUSTRIES PVT LTD

GORDON FRAZER & CO LTD

GREENFIELD BIO PLANTATIONS (PVT) LTD

H HAMEED BROTHERS COLOMBO (PVT) LTD

HARRISONS (COLOMBO) LTD

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HELA CLOTHING (PVT) LTD

HELLMANN WORLDWIDE LOGISTICS (PVT) LTD

HEMACHANDRAS (KANDY) LTD

HIRDARAMANI INTERNATIONAL EXPORTS

(PRIVATE) LIMITE

EASL Annual Report 2016/2017 Page 8

I IMPERIAL TEAS (PVT) LTD

INDUSTRIAL CLOTHINGS LTD

ISHANA SPICE EXPORTS

J J L MORISON SON & JONES (CEYLON) PLC J L

JAFFERJEE BROTHERS

JIFFY PRODUCTS S.L. (PVT) LTD

K K. I. K . LANKA (PVT) LTD

L LANKA BRUSH EXPORTS (PVT) LTD.

LANKA WALLTILES PLC

LANKEM CEYLON PLC

LINK NATURAL PRODUCTS (PRIVATE) LTD

M MABROC TEAS (PVT) LTD

MAC INTERNATIONAL FREIGHT

(PRIVATE) LIMITED

MACKWOODS LTD

MASCONS (PRIVATE) LTD

MEEZAN & CO (PVT) LTD

MIAMI EXPORTS (PVT) LTD

MICROCELLS (PRIVATE) LTD

MONA PLASTICS (PVT) LTD

N NIDRO SUPPLY (PVT) LTD

NATIONS TRUST BANK LTD

P

PATTAKANNUS (PVT) LTD

PREMIER NATURAL TEAS (PVT) LTD

R RANFER TEAS (PVT) LTD

RENUKA HOLDINGS PLC

RICHARD PEIRIS NATURAL FOAMS LTD

S SABOOR CHATOOR (PVT). LTD

SAMPATH BANK PLC

SHUMS & CO. LTD

SMITHKLINE BEECHAM (PVT) LTD

SRI LANKA EXPORT CREDIT INSURANCE

CORPORATION

STASSEN EXPORTS LTD

T TEA TANG (PVT) LTD

THE SWADESHI INDUSTRIAL WORKS PLC

TRELLEBORG LANKA (PVT) LTD

THE LION BREWERY (CEYLON) PLC

U

UNION COMMODITIES (PVT) LTD

V VAN REES CEYLON LTD

EASL Annual Report 2016/2017 Page 9

LIST OF MEMBER PRODUCT ASSOCIATIONS AS AT 31ST

MARCH 2017

1. Sri Lanka Fruit & Vegetable Producers, Processors & Exporters Association

2. Sri Lanka Apparel Exporters Association

3. Colombo Rubber Traders’ Association

4. Spices & Allied Products Producers Association

5. Colombo Tea Traders’ Association

6. Sri Lanka Association of Manufacturers & Exporters of Rubber Products

7. Sri Lanka Gem & Jewellery Association

8. Seafood Exporters Association of Sri Lanka

9. Sri Lanka Diamond Manufacturers Association

10. Sri Lanka Association of Software and Service Companies

11. Floriculture Produce Exporters Association (Until 06th

January 2017)

PAST CHAIRPERSONS OF THE EXPORTERS’ ASSOCIATION OF SRI LANKA

Year

From 1993 to 1997 August - Mr Lyn Fernando

Chairman of the Export Section of the Ceylon Chamber of Commerce

- Mr. Gulam Chatoor

Chairman of the Federation of Exporters Association of Sri Lanka

August, 1997 The Export Section of the Ceylon Chamber of Commerce & the Federation of Exporters Association of Sri

Lanka merged to form EASL and the inaugural meeting of the Exporters' Association of Sri Lanka held on

August 22nd 1997, This meeting was chaired by Mr Gulam Chatoor as a Chairman of Federation of

Exporters' of Sri Lanka. Mr Lyn Fernando was elected as the Chairman for EASL at this meeting.

1997-2000 - Mr. Lyn Fernando

2000-2003 - Mr. A S M Muzzammil

2003-2005 - Mr. Gratian Gunawardhana

2005-2007 - Mr. Mohan Mendis

2007-2008 - Mr. Deepal Chandrasekara

2008-2011 - Mrs. Nirmali Samaratunga

2011-2013 - Mrs. Dawn Austin

2013-2015 - Mr. Rohan P. Daluwatte

2015-2017 (February) - Mr. Fazal Mushin

EASL Annual Report 2016/2017 Page 10

THE EXPORTERS’ ASSOCIATION OF SRI LANKA

The formation of the Exporters Association of Sri Lanka brought a wide spectrum of exporters, under

one umbrella, and a strong platform was built to discuss and make representations on issues affecting

the Export Trade, with one voice. The Association now represents around 1000 Exporters through

direct and indirect membership, and contributes to over 80% of the total exports of the country.

History:

In 1973, Chamber Members who engaged in individual export trade initiated the formation of the

“Export Section of the Ceylon Chamber of Commerce”.

In 1987, the Export Development Board initiated the formation of the Federation of Exporters’

Associations of Sri Lanka (FEA), which was an umbrella organization of major export product specific

associations.

It was observed that there was a duplication of activities of these individual Organizations and that

there would be more usefulness served if the two were merged to promote and protect the common

interests of Members, whilst making a significant contribution to the growth of the Export Industry of

Sri Lankan exporter.

In August 1997, Export Section of the Ceylon Chamber of Commerce (CCC) and the Federation of

Exporters’ Association (FEA) passed resolutions at specially convened General Meetings by the two

institutions that the Institutions merge into one Association to be called the EXPORTERS

ASSOCIATION OF SRI LANKA.

The first Chairperson elected after the merger, was Mr. Lyn Fernando, with Mr. Gulam Chatoor

proposing his name from the chair. Mr. Lyn Fernando and Mr. Gulam Chatoor had both served as

Chairpersons of the Export Section of the Ceylon Chamber of Commerce and as the Chairpersons of

the FEA.

All members of both the Institutions took the membership of the EASL.

Membership The EASL now proudly represents practically the entire Export Sector of Sri Lanka through the

Membership of Companies and Exporter Associations. Eligibility to join the EASL being made up of

the following:

1. Any member of the Ceylon Chamber of Commerce engaged in or interested in export

2. Any properly constituted and functioning Association representing exporters of products and

services

3. Any individual member of such an Association referred to in (2) above

4. Any Company or Individual engaged in exports of goods and services who are registered with

Sri Lanka Export Development Board (SLEDB) or any respective Association duly constituted

and functional.

The EASL’s single platform representation structure is acknowledged by all authorities in both the

public and private sectors to be a responsible and credible voice of Exporters in Sri Lanka.

EASL Annual Report 2016/2017 Page 11

REVIEW OF ACTIVITIES 2016/2017

ANNUAL GENERAL MEETING

The Exporters' Association of Sri Lanka which is affiliated to the Ceylon Chamber of Commerce held

its 19th AGM on 22nd

July, 2016 at the Liberty Ball Room, Ramada Hotel Colombo. Hon. Mr.

Ravi Karunanayake, Minister of Finance was the Chief Guest and the key note speaker at the AGM and

Mr. Samantha Ranatunga, Chairman of the Ceylon Chamber of Commerce, was the Guest of Honour.

Mr. Fazal Mushin of Link Natural Products (Pvt) Ltd was elected as the Chairman for EASL whilst

Mr. Harin De Silva of Eastern Merchants Plc and Mr. Chrisso De Mel were elected as 1st Vice

Chairman and the 2nd

Vice Chairman respectively.

The EASL's mission is to promote and protect the interests of the Exporter Community at large and

this has brought together a wide spectrum of Exporters under a strong single platform aimed at

exchanging views and making representation on Macro issues relevant to the country's Exports.

The EASL has constantly engaged with Government agencies, representing and lobbying Exporter

concerns for consideration, with a view to facilitating a dialogue with regard to national policy

direction, whilst taking into account the shared goal of achieving strong national economic

development through the combined endeavours of the Export Sector and the Government.

Addressing the Association’s Annual General Meeting, Chairman Mr. Fazal Mushin stated that the

duplication of ministry and government agency functions related to trade has created confusion and

complacency in the country’s exports.

“Red tape and overlapping of functions of several ministries, several strategic initiatives being taken

over by several agencies on the same topic of trade and strategic policy has created an environment of

confusion and inconsistency,” Exporters’ Association of Sri Lanka (EASL) Chairman Fazal Mushin

said. The National Policies and Economic Affairs Ministry, Development Strategies and International

Trade Ministry, Foreign Affairs Ministry and the Ministry of Finance all talk about developing trade

and trade agreements, even though the power lies with the Industry and Commerce Ministry.

Government agencies related to trade have been divided among most of these ministries, and new

agencies have also been created in order to give power to politicians and government supporters, often

resulting in inter-agency power struggles instead of cooperation.

Mushin noted that this large collection of government officials are not in a positive thinking, proactive

or even a business as usual mode, as they are pondering the fallouts of government debt servicing, a

slow global economy, disasters and phenomena such as Brexit.

“These challenges are not exclusive to Sri Lanka. Whilst we ponder on the downside and fallouts etc.,

our neighbouring countries are outsmarting us and have faster growth rates, whilst we are running

around like headless chicken,” he said.

He recommended that Sri Lanka learn from its neighbours, and go on to diversify both products and

export destinations.

EASL Annual Report 2016/2017 Page 12

While Mushin noted that most ministers and officials had given time to listen to export sector

stakeholders unlike in the past, and the Prime Minister’s economic policy statement had included the

key elements of the EASL’s whitepaper ‘Recommendations for a National Export Strategy’, it must be

converted to action.

“What we need is a political policy agreed by all coalition partners of government, accountability of

ministries and more importantly, make the Prime Minister’s policy statement to be the driving vision

of this country,” he said.

He added that the various export associations affiliated with different business chambers will unite to

push the agenda for export development in the future.

“We have been silent far too long and been politically correct. It’s time we all spoke with one voice

and be the drivers of the country,” he said.

Sri Lanka’s exports as a percentage of Gross Domestic Product declined to 12.76 percent in 2015

compared to 33 percent in 2000 due to increasing protectionism leading to a lack of global

competitiveness.

Even the chauvinistic politicians that led the Brexit campaign have now become moderate in their

views of isolation and protectionism due to effects it will have on their economy.

The government would like the country’s exports to increase to 40 percent of the Gross Domestic

Product (GDP) with greater private sector involvement, Finance Minister Ravi Karunanayake said at

the Sri Lanka Exporters’ Association (SLEA) AGM.

“Exports should get back to 40 percent of GDP before too long,” he said.

He added that small and medium-sized enterprises and the informal sector have not responded to

recent government efforts to rectify the ‘appalling’ exports scenario.

Sri Lanka’s exports declined to 12.76 percent of GDP in 2015 compared to 33 percent of GDP in 2000.

Karunanayake asked the private sector to get involved since the government is creating Free Trade

Agreements (FTAs).

“We will open up markets. Don’t worry of FTAs bringing in imports. Focus on the potential of value-

added exports that is there. I don’t mind even cow dung being exported as long as it is value-added,”

he said.

However, it appears that certain protectionist practices that were intensified under the previous regime

are likely to continue.

“We’re responding to exporters in a big way, where in many areas, cess have come into ensure that we

stop imports coming in and get exports going out,” Karunanayake said.

EASL Annual Report 2016/2017 Page 13

MANAGEMENT COMMITTEE MEETINGS & SUMMARY OF ITS ACTIVITIES

During the period under review (2016/2017) the Committee met on twelve (12) occasions.

EASL REPRESENTATION ON OTHER BODIES/PARTICIPATION AT OTHER FORUMS

Committee of the Ceylon Chamber of Commerce

- Represented by Chairman, Mr. Fazal Mushin (Main

representative) & Mr. Harin de Silva (Alternate)

Steering Committee on Trade Liberalization of the Ceylon Chamber of Commerce

- Mr. Fazal Mushin, Mr. Harin de Silva

Employers Federation of Ceylon - Represented by Mrs. Dawn Austin (Main

representative), Mrs. Niramali Samaratunga (Alternate)

SLEDB Advisory Committee on Market Development

- Chairman, Mr. Fazal Mushin (Main representative) &

Mrs. Dawn Austin (Alternate)

Exporters Forum, Sri Lanka Export Development Board

- Representative –Mr. Talal Shums

SLEDB Advisory Committee on Trade Facilitation

- Representative –Chairman, Mr. Fazal Mushin

EAL Chairman was appointed as the Co-chair of the Steering Committee of World Export

Development Forum (WEDF) 2016.

Policy Advisory Committee (PAC) - Sri Lanka Accreditation Board

Main Representative - Mrs. Dawn Austin

Developing National Export Strategy (NES) Core Team and Working Group, International

Trade Centre and Sri Lanka Export Development Board – Mr. Fazal Mushin, Mr. Harin de

Silva, Mr. Talal Shums

The Association also maintained a close dialogue with the following Institutions, on export related

matters:

Ministry of Development Strategies and International Trade

Ministry of Industry and Commerce

Ministry of Finance

Ministry of Foreign Affairs

Sri Lanka Export Development Board

Department of Inland Revenue (VAT Dept)

Sri Lanka Customs

Board of Investment

The Central Bank of Sri Lanka

Sri Lanka Ports Authority

Department of Commerce

Department of Exchange Control

Joint Apparel Associations Forum

Sri Lanka Standards Institute

EASL Annual Report 2016/2017 Page 14

MAIN AREAS ADDRESSED DURING THE YEAR UNDER REVIEW

As the apex body representing over 1,000 Exporters through direct & indirect membership, who

contribute over 80% to the total exports of the country, the EASL activities during the year under

review, were primarily aimed at facilitating an environment for the Exporters with a focus on global

competitiveness and achieving strong growth of the Sector.

In the year under review the EASL has forged ahead to capitalize on the Government’s declaration that

all imperatives required to encourage the growth of Export will be addressed and resolved. Consistent

and frequent representation has been made by the EASL to every related agency connected with

Exports, drawing attention to aspects which constrain Export businesses from being able to achieve the

targets which each sector has set for itself.

The association has identified a few key areas of importance to exports to be the focus of the

committee during the year, Improve the quality and standards of export products; Build capacity within

institutions responsible ensuring the ability to achieve international standards in a cost effective

manner; Create encouragement to increase Production and Productivity; Setting up of an EXIM bank

to support Exporters looking at new markets, NTBS, Sanitary and Phytosanitary Measures and

Technical Barriers to Trade relevant to FTAs with India, China and Pakistan were taken up at the

various sub committees appointed by the Ministry of Development Strategies and International Trade

(MoDSIT).

Concerns were taken up through the Ceylon Chamber of Commerce regarding new regulations

introduced by the Central Bank of Sri Lanka on repatriation of export proceeds. EASL Lobbied with

the Central bank and all relevant ministries not to implement the proposal on repatriation of export

proceeds within 90 days which would have been detrimental to the Export Trade.

The Office-bearers worked tirelessly on lobbying to revoke the decision of terminating of s-VAT along

with other trade associations and chambers.

EASL also submitted submission for the 2016 National Budget, which proposed measures to support

and grow the Sector. Some of the key issues which needed to be addressed in the Budget had been

identified by the EASL’s membership (which accounts for over 80% of Exporters), can be largely

identified under the headings of Global Competitiveness & Ease of Doing Business.

We have also been very vocal in the media and have released articles on current topics such as recent

announcement on lifting of EU ban on fisheries, regaining GSP+ Scheme, urging government to

withhold the suspension of SVAT until such time as RAMIS is fully operational and also emphasized

the government not to introduce surcharges (THC) for importers and exporters.

EASL together with Frontier Research has over the past several months prepared the 2nd

phase of

EASL Strategy Document, “Recommendations for the National Export Strategy (NEDEVS 2)”. This

document proposes/ recommends to the Policy makers, aspects which the EASL has in the main,

identified as cross cutting issues that need to be addressed to enhance the competitiveness and

productivity of the export sector in Sri Lanka. Certain matters raised by its sector specific association

EASL Annual Report 2016/2017 Page 15

members have also been taken into consideration in developing this working paper. The document was

handed over to the relevant Ministries and Government authorities.

NEDEVS - 2 provides 5 key thematic areas that policymakers are encouraged to consider in the

formulation of a National Export Strategy. It is a well-known fact that exports have been on the decline

for over a decade. Though many efforts have been taken to address this, we are yet to see it being

reflected in our national export earnings figures. While realising that there are several priorities that

policymakers can focus on to boost exports, focusing on a few key priorities in the next few months

and years ahead could be a possible way ahead.

As such the following key themes briefly explained below have been identified as priority areas:

1. Stability in Politics and Policy – Given the importance placed on political stability and policy

consistency by investors, this area is a top priority and prerequisite for exports to develop and thrive

2. Understand and develop inward looking factors – while we may look at the export growth strategies

of other countries for Sri Lanka to emulate, we must also pay attention to some of the limiting

factors that are Sri Lanka specific such as the growing labour shortage.

3. Low-lying fruits- While this has direct correlation with the first priority theme, unlocking a few

obstacles in the investment climate landscape will go a long way in promoting the country and

enabling greater investment in exports.

4. Public - Private Partnerships (PPP) for exports – PPP is a buzzword at present but the purpose of the

inclusion in this document is to highlight how it can be targeted to promote exports.

5. Hub strategy - This theme explores what constitutes in becoming a hub and what it means for Sri

Lanka, in terms of focusing on a common policy.

Handing over the NEDEVS 2 document to the Governor, Central Bank of Sri Lanka

Dr. Indrajit Coomaraswamy

EASL Annual Report 2016/2017 Page 16

KEY EXPORT RELATED MATTERS ADDRESSED AND RESOLVED THROUGH EASL

INTERVENTIONS AT MEETINGS WITH GOVERNMENT OFFICIALS AND OTHER

EXPORT RELATED ORGANIZATIONS:

i) EASL Submissions for 2017 National Budget

Submissions of the different Sectors were consolidated and presented by EASL to the Ministry

of Finance. Key issues were largely identified under the headings of Global Competitiveness

& Ease of Doing Business respectively. This submission was well received and the aspects

highlighted as urgent were successfully addressed in the Budget of November 2016.

The following areas were highlighted in the proposal;

1. Facilitate access to the Madrid System & Lisbon Agreement for the International Registration

of Trademarks

2. Remove Ancillary Taxes on Import of Machinery& Technology

3. Simplify Customs documentation and approvals for importation of greenhouse within the tax

free facility that currently exists

4. Remove restrictions on local sale of products manufactured by BOI companies particularly if

these items can be used as import substitutes

5. Expand the scope of SLECIC to enable them to provide short term buyers credit to encourage

diversifying of markets and exports by SME sector

6. Build capacity within institutions responsible ensuring international standards to enable

exporters to meet international/importing country standards in actuarial and cost effective

manner

7. Further facilitate private public partnerships in Research and Development

8. Strengthen commercial sections of Sri Lankan Embassies in selected target markets (e.g. India,

China, Japan) by recruiting nationals of that country on short term contracts

9. Study the policies and incentives used by the Middle East & other fast growing Free Zones to

attract foreign investors without any comparative advantages in terms of labor or other

resources (except oil) and align our policies and incentives accordingly

10. Extend the Natural Rubber subsidy scheme to Regional Plantation Companies and RDD

plantations as well, Increase the present replanting subsidy for rubber at least by 50%.

11. Permit importation of rubber for value addition without restriction. If not, there is a risk of

investors shifting to countries where rubber is available or can be imported without hassle

12. Take initiatives to improve yields and quality of the spices sector.

ii) Department of Inland Revenue

Representations were made to IRD stating that there should not be a hiatus in the transition

from SVAT to RAMIS and that the current SVAT system must remain operational until

RAMIS is in place as projected.

iii) Sri Lanka Customs

Meetings with Director General Customs

Export Statistics to be available monthly for the benefit of the exporters to understand the

competitiveness in the market

Operational Issues relating to Sri Lanka Customs Export Facilitation Centre

EASL Annual Report 2016/2017 Page 17

iv) Export Development Board

Ongoing interaction with the EDB and members of the Managing Committee being

included on the respective EDB Advisory Committees.

Submissions for Exporters’ Forum

The Chairman of the EASL was appointed to co-chair the Steering Committee and the head

the subcommittee on events & Destination Management of the World Export Development

Forum (WEDF 2016)

PROPOSALS FOR GLOBAL MARKET CAMPAIGN TO BOOST SRI LANKA'S

EXPORTS IN 2017

EASL was represented at the meeting held on 26th

April 2017. The concept note prepared

by Dr. Ravi Dissanayaka, University of Kelaniya (Head of Think-Tank group created at the

SLEDB to develop a Branding Strategy for Sri Lanka.) was shared for comments. This

strategy paper was developed based on the inputs found in "Think-Tank.

SRI LANKA NATIONAL EXPORT STRATEGY

The EASL has continuously campaigned for greater engagement between government and

stake holders and is fully supportive of the en-devours of the SLEDB and ITC in

developing the National Export Strategy (NES) for Sri Lanka.

EASL strongly believe in a strong PPP and this initiative will strengthen the Agency for

International Trade (AIT) to drive growth in the export sector by having National Export

Strategy (NES) which will be driven on private sector inputs.

EASL was invited by SLEDB and ITC to sit on the steering committee for the Formulation

of the National Export Strategy (NES). EASL was also invited to be in the core team and

the working groups of NES design process

EASL contributed at the First Stakeholders’ Symposium held on 6th & 7

th April 2017 At Temple

Trees, under the distinguished patronage of Hon. Prime Minister.

The objective of the 1st National Symposium was to initiate the NES design process and

provide a platform for public and private stakeholders to discuss their strategic vision for

Sri Lanka’s export sector. The two-day consultation was aimed to confirm the export

performance diagnostics and define the main strategic orientations for the NES design

process, including priority sector selection.

On the sector selection, the results for the top 8 sectors that were shortlisted by the

participants in the 1st symposium based on quantitative and qualitative information are:

(ITC used two different ranking methodologies to draw the list and are in the process of

elaborating the narrative to guide the final selection).

Top 6 sectors:

Processed Food and Beverages (further shortlisting required)

ICT (further shortlisting required)

EASL Annual Report 2016/2017 Page 18

Wellness Tourism (Medical Tourism)

Boat Building

Spices and Essential Oils

Fisheries

Extra 2 sectors for Core Team discussion:

Coconut Products

Rubber and Rubber-Based Products

v) Sri Lanka Standards Institute

Issues faced by Exporters when exporting fast moving consumer goods to India

Request for MRA to be established between SLSI and the Exporters and other statutory

bodies in order to have reciprocity between Authorising Agencies.

Import Inspection Scheme

EASL suggested that Import and Export Control Department and Sri Lanka Standards

Institution shall take into consideration to include products such as Chili powder, Curry

Powder under the Import Inspection Scheme of SLSI.

vi) Department of Commerce

Addressing Non-Tariff Barriers (NTBs) faced by Sri Lankan exporters when exporting to

India in the form of standards, testing and inspection requirements.

The EASL was invited to participate in a preparatory meeting for the 12th

Joint Council

Meeting (JCM) under the USA – Sri Lanka Trade and Investment Framework Agreement

(TIFA) 2016 on the 01st April at Department of Commerce.

vii) Board of Investment of Sri Lanka

Request to revisit the approval procedures adopted by the BOI with respect to investments

into export of primary products such as spices without any value addition which is

detrimental to local exporters.

Request to extend the tax and other incentives given for new foreign investors to the

existing local companies who want to add value, expand and upgrade their operations.

EASL’S AFFILIATION WITH OTHER ORGANIZATIONS ON EXPORT RELATED

MATTERS

i) The Ceylon Chamber of Commerce

Participation in monthly Chamber Committee meetings:

ii) Employers Federation of Ceylon

As an Affiliated Association of the EFC, EASL participated in EFC regular meetings, where

employee related matters were discussed.

EASL Annual Report 2016/2017 Page 19

AWARENESS BUILDING ACTIVITIES

A) Dissemination of Information

The membership was alerted on various issues affecting exporters, as well as matters of interest, by

way of Circulars issued by EASL as well as the Ceylon Chamber of Commerce and various other

affiliated bodies of the relevant local Chamber. This included information on matters of business

interest to members, notices of topical seminars/workshops organized by the Ceylon Chamber of

Commerce and affiliated Associations/Councils.

B) Seminars/Interactive forum

During the year under review, there was no seminars organised.

C) Website

The site has proved to be an extremely useful information tool. http://www.exporterssrilanka.net.

D) Publicity

Several Press releases and interviews were given by EASL to create awareness of developments and

issues in the Sector, and the future outlook.

E) Membership

The Membership as at 31st March 2017 consisted of 82 individual Exporter members and 11 Product

Associations.

F) Auditors and Annual Accounts

The Auditors of the Exporters Association of Sri Lanka for the period 2016/2017 were Messrs. HLB

Edirisinghe & Co. The Audited Accounts of the Association is attached.

G) Secretariat

The Ceylon Chamber of Commerce continued to provide Secretarial Services to the Association during

the period under review.

BY ORDER OF THE COMMITTEE

Sgd.

Manori Dissanayaka

For Secretary

EASL Annual Report 2016/2017 Page 20

EXPORT SECTOR PERFORMANCE IN 2016/2017

AND FUTURE EXPORT CHALLENGES

OVERVIEW OF THE ECONOMY

Economic Growth

Following a period of uncertainty, the Sri

Lankan economy showed early signs of

stabilisation during the year 2016 in response to

corrective actions adopted by the government

and the Central Bank. Unfavourable weather

conditions and sluggish global economic

recovery caused the economy to grow at a

slower rate of 4.4 per cent in 2016 in real

terms, in comparison to 4.8 per cent in the

previous year, although a steady acceleration in

quarterly growth was observed from the second

quarter of the year amidst tightened fiscal and

monetary policies. Increased investment

expenditure, especially in the construction

sector, drove economic growth during the year,

while consumption expenditure slowed in

response to the policy environment in place.

Inflation, which remained low in the first four

months of the year, increased thereafter to

record an annual average of 4.0 per cent in

2016 (both National Consumer Price Index

(NCPI, 2013=100) and Colombo Consumer

Price Index (CCPI, 2013=100) based). The

high levels of inflation observed during some

months in 2016 as well as in the first quarter of

2017 were mainly due to the adverse impact of

weather related disruptions, tax adjustments

and rising international commodity prices, but

the increasing demand pressures of the

economy were evident in core inflation

remaining at elevated levels. Movements in

external sector balances reflected the continued

domestic demand for imports from certain

sectors of the economy, weak external demand

for the limited basket of domestic products,

persistent failure of the country to attract

increased direct investment flows as well as the

impact of rising global interest rates

particularly on the government securities

market. These developments resulted in the

balance of payments (BOP) recording a deficit

for the second consecutive year in spite of

improvements in earnings from tourism and

other service exports as well as workers’

remittances. The Central Bank’s heavy

intervention in the foreign exchange market

continued in the first four months of the year

resulting in a broadly stable exchange rate

during this period. However, the exchange rate

was increasingly allowed to reflect market

conditions thereafter by limiting Central Bank

intervention to dampen the pressure on the

exchange rate arising from outflows of foreign

investments from the government securities

market. Considering the possible rise in

demand driven inflationary pressures, the

Central Bank continued to tighten monetary

policy and monetary conditions throughout the

year. Accordingly, in addition to increasing the

Statutory Reserve Ratio (SRR) applicable on

rupee deposit liabilities of licensed commercial

banks (LCBs) in December 2015 to be effective

from January 2016 and the continued

application of the loan-to-value (LTV) ratio as

a selective macroprudential demand

management tool, the Central Bank raised its

key policy interest rates by a total of 100 basis

points in two steps during 2016, the first in

February 2016 and the second in July 2016.

Open market operations of the Central Bank

also guided the short term market interest rates

to move to the upper bound of the policy

interest rate corridor, resulting in a considerable

increase in the market interest rate structure. In

response to tightened monetary conditions, the

acceleration of broad money growth subsided

while the growth of credit extended to the

private sector by LCBs that peaked at 28.5 per

EASL Annual Report 2016/2017 Page 21

cent in July 2016, on a yearon-year basis, also

decelerated to 21.9 per cent by end 2016.

However, the deceleration of monetary and

credit expansion was below expectations, and

the Central Bank again adjusted its policy

interest rates upwards by 25 basis points in

March 2017 with the view of signalling to the

market the intent of the Central Bank in

maintaining inflation in mid single digits in the

medium term, within its increasingly forward

looking monetary policy framework in which

the management of inflation expectations plays

a vital role. The financial sector, in the

meantime, continued to expand during the year

whilst exhibiting resilience amidst challenging

market conditions both globally and

domestically. Meanwhile, fiscal operations

registered a notable improvement in both

revenue and expenditure fronts, resulting in the

containment of the overall budget deficit at the

envisaged level of 5.4 per cent of Gross

Domestic Product (GDP). In spite of these

achievements, central government debt as a

percentage of GDP increased, illustrating the

narrowing fiscal manoeuvrability within the

overall macroeconomic policy framework and

highlighting the necessity of continued efforts

to sustain the fiscal consolidation process.

The performance of the Sri Lankan economy in

2016 reconfirmed the necessity of addressing

the deep rooted structural issues if the country

is to progress steadily towards a higher growth

trajectory, as envisaged. While the

government’s recent efforts, with the support of

multilateral agencies including the International

Monetary Fund (IMF), to formulate policy

frameworks required to address these issues as

well as emerging challenges are commendable,

it is essential that such policies are

implemented swiftly with consistency in order

to improve productivity and efficiency of the

economy and to attract much needed foreign

direct investments (FDIs) and boost

investments from the domestic private sector,

while seamlessly integrating with the global

production networks.

The Sri Lankan economy is projected to grow

at a moderate rate of around 5.0 per cent in

2017 amidst the adverse impact of

unfavourable weather conditions, and is

expected to improve gradually thereafter to

record an annual growth rate of 7.0 per cent by

2020.

Earnings from exports contracted for the

second consecutive year in 2016 with a

contraction in earnings from agricultural and

industrial exports. Low commodity prices in

the international market, modest economic

recovery of Sri Lanka’s major export

destinations and disruptions in the domestic

supply of export oriented agricultural products

mainly contributed to the decline in export

earnings by 2.2 per cent to US dollars 10,310

million. However, the removal of sanctions

imposed on Iran by the USA in January, and

the lifting of the EU’s ban on seafood exports

from Sri Lanka in June, cushioned the overall

negative performance of exports resulting in a

reversal of the year-on-year declining trend of

exports towards end 2016. Despite the

improvements in earnings from the export of

textiles and garments (1.3 per cent) and base

metals and articles (60.5 per cent), overall

export earnings declined as a result of the

decline in earnings from transport equipment (-

46.0 per cent), petroleum products (-23.3 per

cent), tea (-5.3 per cent) and spices (-16.0 per

cent). The top ten export destinations remained

unchanged with the USA continuing to be the

main export destination, accounting for 27.3

per cent of total export earnings, followed by

the United Kingdom (UK), India, Germany and

Italy. Meanwhile, the overall export volume

index declined marginally by 0.7 per cent in

2016, while the export price index, in US dollar

terms, declined by 1.5 per cent.

EASL Annual Report 2016/2017 Page 22

Global Economic Environment and Outlook

According to the World Economic Outlook of

the IMF,1 the global economy gained

momentum in the second half of 2016 with

advanced economies registering a stronger than

expected pick-up, while slackened economic

activity persisted in emerging market and

developing economies. While many advanced

economies continued their efforts to stimulate

demand, emerging market and developing

economies exhibited diverse growth and

exchange rate outcomes depending on BOP

positions, fiscal situations and investment

activities in each country, despite being

affected in general by tighter conditions in

global financial markets. The agreement to

limit oil production by a number of major

producers led to a gradual increase in oil prices

during the year. However, the general

consensus is that prices are unlikely to rise

above US dollars 60 per barrel, as it is expected

that an aggressive supply response will be

triggered through fracking, particularly in the

USA, at this price. Prices of most commodities

including food commodities and base metals

displayed an increasing trend, particularly

towards the latter part of the year. Continued

uncertainties in the global economy as well as

volatility in international politics shrouded

economic decision making for policymakers as

well as private investors.

The slow economic growth, particularly in the

first half of 2016, as well as low levels of

inflation called for accommodative monetary

policy to remain in force in advanced

economies throughout most of the year.

However, with the US economy increasingly

showing signs of sustained growth and

employment generation, the US Federal

Reserve increased the Federal Funds target rate

in December 2016 and March 2017, following

its initial rate adjustment in December 2015.

The referendum in the UK to leave the EU too

created uncertainties in financial markets and

the global economic outlook. Economic

activity in oil producing countries including

Russia, showed some improvement, with oil

prices stabilising at higher levels in the second

half of the year. Policy stimulus to rebalance

growth in China towards improving domestic

demand and lesser reliance on investment

continued, creating uncertainty in global

commodity markets in which China is a major

buyer of key commodities such as petroleum

and base metals. In the face of these

developments and expectations, global interest

rates moved upwards, leading to portfolio

outflows from many emerging market

economies during this period. During the year,

the US dollar appreciated vis-à-vis other major

currencies. The currencies of commodity

exporting countries including those of oil

producers appreciated, while the pound

sterling, euro and the Japanese yen depreciated.

The momentum in the global economy is

expected to persist in 2017 and 2018 with the

ongoing cyclical recovery in investment,

manufacturing and trade. For the first time

since the onset of the great recession, the first

quarter of 2017 has seen a synchronised upturn

in the USA, Europe, Japan and some key

emerging markets. Such growth will be

propelled by the effects of broadly

accommodative monetary policy and

expansionary fiscal policy measures of

advanced economies that are expected to

spillover to emerging market and developing

economies. Fiscal policy is expected to be more

expansionary in the USA in 2017.

Expansionary fiscal and monetary policies in

other advanced economies including the UK,

the EU and Japan are expected to support

growth in the next one to two years as well,

while rising commodity prices are likely to lift

global inflation and reduce deflationary

pressures experienced by some of these

economies.

EASL Annual Report 2016/2017 Page 23

However, current global growth projections are

highly contingent on the effects of the

protectionist stance on international trade that

the new US administration has pledged to

introduce. Therefore, global growth in the next

two years will be marked by the responses that

are unfolding amongst the trading partners of

the USA as they search for new markets

domestically and internationally and new

growth stimulants. In the meantime, prospects

for the UK have been clouded by the effects of

Brexit while Japan will explore avenues to

regain market access lost by the USA’s

withdrawal from the TransPacific Partnership

(TPP) agreement. China’s high growth is

expected to be supported by policy stimulus,

though its effects on credit expansion and

budgetary constraints may require abrupt policy

adjustments in the period ahead. India’s

growth, which at present is considered the

highest amongst large economies, is forecast to

be somewhat lower than expected in 2017 due

to the impact of the withdrawal of high

denomination currency notes from circulation.

Growth rates in economies that are dependent

on oil incomes, particularly those in the Middle

East, are also expected to slowdown due to

lower levels of oil production, in spite of the

expected increase in oil prices.

The acceleration in global growth and the

resultant increase in global interest rates could

have diverse effects on the Sri Lankan

economy. The increase in oil prices as well as

prices of other commodities in the global

markets will weigh negatively in aggregate on

the BOP and domestic price indices, while

stagnant growth in the Middle East could

reduce the income from tea exports and

remittances by migrant workers. Tourist

arrivals may pick up with high economic

growth in Europe, China, India and Russia,

which are Sri Lanka’s major sources of

tourism. Sri Lanka, along with other small

economies in Asia, could experience higher

direct investment inflows, given the rising

levels of South-South FDIs. The proposed trade

and economic partnership arrangements in the

region could enable Sri Lanka to gain access to

larger regional markets with higher income

levels. The tightening of financial markets,

however, pose numerous challenges to Sri

Lanka, in relation to borrowing in international

financial markets that are necessary to rollover

previous borrowings, and in relation to

payment of interest on floating rate US dollar

denominated instruments that are being used to

finance the budget deficit

Direction of Trade

Main destinations for Sri Lankan exports and

the type of goods exported to such destinations

broadly unchanged in 2016 in comparison to

2015, while China became the main source of

imports in 2016, surpassing India which was

the main import source since 2001. The USA

and the UK continued to be the two main

export destinations accounting for 37 per cent

of total export earnings in 2016. China, India

and the USA were the main trading partners of

Sri Lanka as total trade with China and India

exceeded US dollars 4 billion, while trade with

the USA exceeded US dollars 3 billion

contributing 14.9 per cent, 14.7 per cent and

11.3 per cent, respectively to total external

trade. Meanwhile, the trade with UAE,

Singapore, Japan and the UK exceeded US

dollars 1 billion each. Trade with India and

Japan declined substantially in 2016 compared

to 2015 with a reduction in both imports from

and exports to these two countries, while trade

with China, Singapore, Germany, Italy and the

USA increased significantly.

The USA remained the main export destination

in 2016, accounting for 27.3 per cent of total

EASL Annual Report 2016/2017 Page 24

export earnings. Exports to the USA totalled

US dollars 2,810 million, of which 74.9 per

cent was derived from garment exports and 8.7

per cent from rubber products. Earnings from

garment exports to the USA remained broadly

unchanged in 2016, accounting for 45.7 per

cent of total garment exports. The UK

continued to be the second largest export

destination, registering 10.1 per cent of total

export earnings and one third of export

earnings from the EU. Garments and rubber

products were the main export items,

accounting for 79.1 per cent and 2.8 per cent,

respectively, of receipts from the UK. Total

earnings from garment exports to the EU in

2016 amounted to US dollars 1,905 million,

accounting for 41.4 per cent of total export

earnings from garments. The main export

destinations within the EU, other than the UK,

were Germany, Italy, Belgium, Netherlands

and France. Garments, rubber products, tea,

food, beverages and tobacco, and spices were

the main exports to Germany and Italy, which

were the fourth and fifth largest export

destinations. Total exports to India, which is

the third largest export destination, declined to

US dollars 554 million in 2016 from US dollars

643 million in 2015, due to the reduction in

export earnings from tea, minor agricultural

products, spices, transport equipment and

animal fodder. Iran emerged as the top buyer of

Sri Lankan tea in 2016 surpassing Russia.

Other major buyers for tea were Iraq, Turkey

and the UAE. These countries together

contributed to 45.2 per cent of earnings from

the export of tea in 2016.

China became the main import origin of Sri

Lanka in 2016, accounting for 21.7 per cent of

the total expenditure on imports. Expenditure

incurred on Chinese imports increased by 13.6

per cent to US dollars 4,215 million in 2016,

with increased expenditure on textiles and

articles, machinery and equipment, building

material, transport equipment and chemical

products. India, the second largest import

origin in 2016, accounted for only 19.7 per cent

of total imports, registering a decline of 10.6

per cent, due to the reduction in import

expenditure on petroleum products and

vehicles, such as auto-trishaws and motor cars.

Singapore, the third largest import origin

accounted for 6.1 per cent of total imports.

Imports from Singapore mainly comprised

petroleum products, machinery and equipment,

and diamonds and precious stones. The UAE

was the fourth largest import source with

imports from UAE, consisting of petroleum

products, diamonds and precious stones and

base metals. Expenditure incurred on imports

from Japan, which is the fifth largest import

origin, declined by 31.6 per cent due to a

reduction in the imports of vehicles, despite

higher expenditure incurred for the import of

vehicle and machinery parts and machinery and

equipment from Japan.

Export Performance

Earnings from exports contracted in 2016 for

the second consecutive year, mainly owing to

the downward movement in commodity prices

in the international market and modest

economic recovery in Sri Lanka’s major export

destinations. Despite the positive growth

recorded in the latter part of 2016, earnings

from exports at US dollars 10,310 million

reflected a decline of 2.2 per cent, from US

dollars 10,546 million in 2015, led by the

declines in agricultural and industrial exports

during the first seven months of the year.

Export earnings declined mainly due to lower

agricultural exports, which account for around

one fourth of total exports. Earnings from

agricultural exports declined by 6.3 per cent to

US dollars 2,326 million in 2016, reflecting

EASL Annual Report 2016/2017 Page 25

lower exports of many categories under

agricultural products. Earnings from tea

exports, which declined by 17.7 per cent in

2015, reduced further by 5.3 per cent in 2016 to

US dollars 1,269 million, recording the lowest

level since 2009. The total volume of tea

exported declined by 5.9 per cent to 289

million kilograms, due to lower production and

lower demand. Tea production declined in 2016

due to adverse weather conditions and trade

union activities in the plantation sector. The

demand for tea contracted mainly due to the

lower demand by major tea export destinations,

especially Middle East and Russia, as a result

of lower income levels experienced by these

countries due to relatively low oil prices and

increased geopolitical tensions. However, the

average export price of tea increased

marginally by 0.6 per cent to US dollars 4.39

per kilogram in 2016, despite the 6.3 per cent

(year-on-year) decline recorded during the first

half of the year. The reduction in export

earnings from spices and minor agricultural

products also contributed significantly to the

lower earnings from agricultural exports.

Export earnings from spices declined by 16.0

per cent to US dollars 317 million in 2016, as

against an increase of 42.7 per cent recorded in

2015, due to significant reduction in export

volumes of pepper and cloves, by 50.8 per cent

and 66.6 per cent, respectively. However, both

export volumes and prices of cinnamon, and

nutmeg and mace increased during the year.

Earnings from minor agricultural products

declined by 28.9 per cent to US dollars 114

million, as export volumes of arecanuts and

rice decreased substantially by 54.4 per cent

and 54.2 per cent, respectively.

Export earnings from coconut, rubber and

seafood increased during the year partly

offsetting the contraction in agricultural

exports. Earnings from the exports of coconut

products increased by 4.0 per cent to US dollars

366 million due to increased nonkernel

products, such as fresh nuts, fibre and coconut

shells and ekels, despite a significant decline in

earnings from coconut oil exports, under kernel

products, owing to lower prices. Despite the

decline recorded in rubber export prices,

earnings from rubber exports, which declined

continuously since 2012, increased by 25.0 per

cent to US dollars 33 million in 2016, reflecting

an increase in export volumes, by 55.8 per cent

to 16 million kilograms. Export earnings from

seafood, which declined significantly in 2015

due to restrictions on market access to the EU

since January 2015, increased by 4.0 per cent to

US dollars 170 million in 2016, after the lifting

of the ban on seafood exports from Sri Lanka to

the EU in June 2016.

Earnings from industrial exports, which

account for around three fourths of total export

earnings, contracted by 1.0 per cent to US

dollars 7,940 million in 2016 in comparison to

the previous year. Lower export earnings on

transport equipment, petroleum products, and

gems, diamonds and jewellery largely

contributed to this decline. Export earnings

from transport equipment recorded a 46.0 per

cent decline to US dollars 131 million in 2016,

mainly due to the significantly higher level of

exports recorded in 2015, owing to the export

of two dredger vessels that were imported in

2013 and 2014 for the use of the Colombo Port

City Development Project. Export earnings

from petroleum products, which mainly

comprise bunker and aviation fuel, declined by

23.3 per cent to US dollars 287 million in 2016,

partly due to higher competition from other

regional players, such as Singapore and India.

Export earnings from gems, diamonds and

jewellery declined by 17.4 per cent to US

dollars 274 million in 2016 in comparison to

the previous year, reflecting lower global

demand. Further, export earnings from animal

fodder, printing industry products, ceramic

products and chemical products also declined

during the year.

Earnings from textiles and garments exports,

which account for 47 per cent of total exports,

increased by 1.3 per cent to US dollars 4,884

EASL Annual Report 2016/2017 Page 26

million in 2016, mitigating the impact of lower

industrial exports to some extent. The USA and

the EU continued to be the two largest buyers

of Sri Lankan garments, in both volume and

value terms. Earnings from these two markets

in 2016 amounted to US dollars 2,104 million

and US dollars 1,905 million, respectively, that

jointly contributes to 87.1 per cent of total

earnings from garments. Meanwhile, garment

exports to nontraditional markets including

Canada, China, Australia and the UAE

increased by 7.9 per cent in comparison to a 4.6

per cent growth recorded in 2015. Export

earnings from base metals and articles

increased significantly by a 60.5 per cent in

2016 due to higher earnings from articles of

iron and steel, aluminium and copper. Global

prices for base metals, including aluminium

and copper, were on an increasing trend in

2016 although their average price levels

remained lower compared to 2015. Export

earnings from leather products also increased

by 22.0 per cent, mainly due to a significant

increase in the export earnings of footwear.

Export earnings from rubber products increased

marginally by 0.9 per cent as a result of higher

earnings from rubber gloves and rubber tyres.

Machinery and mechanical appliances, and

food and beverages were the other industrial

goods that recorded higher export earnings.

Earnings from the export of minerals rose

marginally by 2.1 per cent in 2016, contributing

to only 0.3 per cent of the total export earnings

in 2016. Earnings from the export of earth and

stones increased, while earnings from ores, slag

and ash decreased.

SECTORAL EXPORT PERFORMANCE 2016/2017

Tea

Tea production in 2016 witnessed a substantial

decline due to both supply and demand factors.

Total tea production in 2016 declined by 11.0

per cent to 292.6 million kilogrammes from

328.8 million kilogrammes in 2015. Low

grown tea production, which accounted for

around 63.0 per cent of the total tea production,

declined by 9.3 per cent to 183.6 million

kilogrammes, whilst high grown and medium

grown tea recorded declines of 14.6 per cent

and 12.7 per cent, respectively, to 64.4 million

kilogrammes and 44.5 million kilogrammes,

respectively. Both supply side and demand side

factors contributed to this decline. On the

supply side, the prolonged drought in tea

growing areas during early 2016, the changes

in weather patterns with overcast conditions in

mid-2016 and the severe drought condition

experienced during the third quarter of 2016

had an adverse impact on the production of tea.

On the demand side, low global commodity

prices and the decline in oil and gas revenues of

EASL Annual Report 2016/2017 Page 27

key tea importing countries adversely affected

the demand for tea in 2016. Meanwhile, the tea

smallholder sector continued to play a major

role, contributing 74.5 per cent to the total tea

production of the country in 2016.

The prices of high, medium and low grown teas

at the Colombo Tea Auction (CTA) throughout

the year were above the corresponding prices

recorded in 2015. Accordingly, the average

price of tea at the CTA increased by 17.8 per

cent to Rs. 473.15 per kilogramme in 2016,

from Rs. 401.46 per kilogramme recorded in

the previous year. The highest year-on-year

increase in average tea prices at CTA was

recorded for medium grown tea (17.6 per cent),

followed by low grown tea (17.4 per cent) and

high grown tea (16.5 per cent). The average

export price (FOB) increased marginally by 0.6

per cent to US dollars 4.39 per kilogramme in

2016 from US dollars 4.37 per kilogramme in

2015. However, local tea exporters benefitted

from the depreciation of the Sri Lankan Rupee

against the US Dollar by 3.8 per cent during

2016, whereby the export price in rupees

registered an increase of 7.9 per cent, from Rs.

593.08 per kilogramme in 2015 to Rs. 639.88

per kilogramme in 2016. The average price

received by smallholders for a green leaf

increased to Rs. 68.53 per kilogramme in 2016

from Rs. 58.80 per kilogramme in 2015. Even

if global market conditions improve, rigidities

in the domestic supply and rising costs of

production could make it challenging for the

domestic tea industry to reap the full benefit of

such an improvement in 2017

Rubber

The decline in production of rubber in 2016

was due to the reduction of both the extent

under tapping and the number of tapping days,

in response to lower prices mainly in the

smallholder sector. Rubber production at 79.1

million kilogrammes in 2016 declined by 10.7

per cent to record the lowest production volume

reported in the past 50 years. The production of

sheet rubber, which accounts for nearly 50 per

cent of the total production, declined by 10.4

per cent to 39.8 million kilogrammes, while the

production of crepe increased by 35.1 per cent

to 15.0 million kilogrammes and other

categories of rubber decreased by 25.6 per cent

to 24.6 million kilogrammes in 2016. The

extent under tapping has declined over the

years as a result of competition for land for

more lucrative agricultural crops such as oil

palm and for real estate development. The low

prices over a considerable period of time has

led to the abandonment of tapping in marginal

lands, as proceeds could not even cover the cost

of tapping. Although local rubber prices

improved during the latter part of the year,

production did not respond immediately to

improved prices owing to the degraded

condition of some rubber lands. However, yield

per hectare increased by 3.9 per cent to 851

kilogrammes in 2016, mainly due to the

reduction of the extent under tapping in

marginal lands. Domestic consumption of

rubber in the industrial sector, which has

stagnated during the last few years, increased

marginally to reach 69 million kilogrammes,

accounting for 87.2 per cent of the domestic

rubber production. Natural rubber exports

declined by 55.8 per cent to 16.2 million

kilogrammes and the cost of production of

rubber increased by 5.9 per cent to Rs 180.00

per kilogramme in 2016. Prices at the Colombo

Rubber Auction decreased during the year, as a

result of a slowdown in global demand owing

to high inventories in major consuming

countries, including China and Japan, and the

subdued global prices caused mainly by low

international crude oil prices. The average price

of Ribbed Smoked Sheet 1 (RSS1) at Rs.

239.28 per kilogramme at the Colombo Rubber

Auction in 2016 witnessed a 3.6 per cent

EASL Annual Report 2016/2017 Page 28

decline over the average price recorded in

2015. Meanwhile, the price of latex rubber also

decreased by 13.0 per cent to Rs. 262.31 per

kilogramme during the year. The average price

of natural rubber per kilogramme declined by

30.1 per cent to US dollars 1.6 in 2016 from

US dollars 2.2 recorded in 2015. As a result of

the decrease in prices, the profit margin

available to the producer remained low, making

rubber cultivation less attractive. The rubber

and plastic products subsector, which is the

third largest subsector in FIPI, indicated a

healthy performance throughout 2016 in

comparison to the previous year. The subsector

reported a growth of 5.4 per cent, improving

significantly from a contraction of 2.2 per cent

observed in 2015. Increased export demand

mainly from the USA, Germany, Brazil etc, for

solid tyres and air tyres contributed to this

growth. The countervailing duty that was

imposed in 2016 on Sri Lanka’s rubber exports

to the USA is not expected to cause a

significant impact on export volumes, as the

current profit margins are adequate for the

industry to compete amidst countervailing duty

being imposed. The global demand for tyres is

expected to be driven by rising focus on fuel

efficiency leading to increased demand for

ultra-fuel-efficient tyres. As a result, an

increase in investments in Research and

Development and innovation in tyre technology

is warranted. Nevertheless, the countervailing

duty may discourage new investors who are

willing to setup new tyre factories in Sri Lanka.

Thus, there remains a potential for local tyre

manufactures to capture these emerging market

opportunities. Manufacturing of rubber gloves

also expanded considerably with higher exports

to markets in the USA and Europe, thereby

supporting the growth in the rubber and plastic

subsector.

Coconut

The supply of coconut and coconut products

experienced a slowdown during the year.

Coconut production in 2016, estimated at 3,011

million nuts, declined by 1.5 per cent over the

output recorded last year. The decrease in the

coconut production was mainly due to the low

rainfall received in main coconut growing areas

in High domestic prices for coconut, amidst the

low production, were partly attributed to the

increased demand from coconut based

industries and high export prices. In 2016, the

average retail price of fresh nuts decreased by

8.3 per cent to Rs. 45.82 per nut. During the

year, domestic prices for desiccated coconut

decreased by 8.7 per cent, from Rs. 290.65 per

kilogramme in 2015 to Rs. 265.27 per

kilogramme in 2016. The average FOB price of

kernel products declined by 25.4 per cent to Rs.

328.30 per kilogramme, against Rs. 439.94 per

kilogramme in the previous year. In the local

market, the price of coconut oil increased by

4.3 per cent to Rs. 215.34 per bottle of 750

millilitres. The three kernel product exports,

namely, desiccated coconut, copra and coconut

oil, increased by 38.5 per cent, with export

earnings from these products increasing by 4.5

per cent. Exports of fresh nuts increased by

130.5 per cent, coconut cream increased by

27.1 per cent, coconut milk exports increased

by 38.9 per cent while exports of coconut milk

powder decreased by 32.5 per cent

EASL Annual Report 2016/2017 Page 29

Minor Export Crops

According to Department of The production of

minor export crops recorded a decline due to

adverse weather conditions and cyclical

seasonal patterns. According to the provisional

estimates provided by the Department of

Export Agricluture, the production of minor

export crops in 2016 contracted by 9.5 per cent,

compared to 12.9 per cent growth that was

recorded in 2015. The production of cinnamon,

cardamom, coffee, cocoa and nutmeg registered

a growth in 2016, while the production of

pepper, clove and arecanut declined.

Production of cinnamon increased considerably

by 7.0 per cent to 18,945 metric tons in 2016

from 17,707 metric tons in 2015. Production of

cocoa grew by 42.2 per cent to 650 metric tons,

nutmeg by 51.1 per cent to 4,155 metric tons

and coffee by 7.0 per cent to 2,824 metric tons.

Severely affected by the continuous drought

during the flowering and fruiting seasons, the

pepper harvest declined by 34.4 per cent in

comparison to the previous year. Farm gate

prices of pepper increased by 14.3 per cent,

reflecting the high demand in 2016.

Meanwhile, the significant decline of 65.3 per

cent in clove production was mainly due to the

cyclical harvesting patterns, which produces a

bumper harvest every other year. The export

volumes of cloves and pepper declined

significantly by 71.2 per cent and 52.7 per cent,

respectively, in 2016. Cashew kernel

production increased by 4.9 per cent to 3,192

metric tons and the extent cultivated increased

by 7.6 per cent to 20,102 hectares in 2016. The

increase in production was achieved amidst the

unexpected heavy rainfall experienced during

the flowering and fruiting season in cashew

growing areas. Despite the increase in

production, the farm gate prices of cashew

increased by 5.3 per cent during the year.

Vegetables Supply of vegetables continued to increase in

2016. Total vegetable production increased

marginally by 1.3 per cent to 1,648,501 metric

tons in 2016, compared to 1,627,592 metric

tons in 2015. Although this was mainly due to

the impact of the increase in vegetable

production in 2016 Yala season by 10.4 per

cent over the corresponding period in 2015, the

4.9 per cent decline in the 2015/16 Maha

production, as a result of the prolonged dry

weather conditions in the first four months of

the year, reflected the marginal increase

observed during the year. The increased

production during 2016 Yala season is mainly

due to the increase in the extent of land used

for vegetable cultivation, following the failing

of paddy cultivation in the Yala season, due to

the drought that prevailed during the end of

2016. Responding to the reduced vegetable

supply in the Maha season, both up-country

and low-country vegetable prices increased in

May 2016. In addition, crop damages and

interruptions of supplies caused by the heavy

rain and flood in May 2016 further aggravated

the level of vegetable prices. Meanwhile,

vegetable cultivation in the intermediate season

also declined due to weather related setbacks.

Nevertheless, the supply of vegetables

increased considerably in the Yala harvesting

period, resulting in prices decreasing from

August onwards. Further, the significant

improvement of vegetable supply from the

Northern Province, as a result of increased

extent under cultivation, helped reduce price

pressures in the vegetable market throughout

the year. Towards the end of the year, however,

following the seasonal pattern, vegetable prices

increased again. During 2016, 21.1 million

kilogrammes of vegetables with a value of Rs.

3.9 billion were exported. To protect farmers

and consumers, strong policy measures are

necessary to educate farmers on Good

Agricultural Practices (GAP) at the nurseries,

and popularise improved technologies on crop

EASL Annual Report 2016/2017 Page 30

cultivation and processing, which can help

increase the productivity of the sector.

Fruits

Fruit production continued to decline in 2016

although it was in high demand by exporters.

Fruit production declined further by 6.0 per

cent in 2016 following the 15.6 per cent decline

observed in the previous year. Variety wise,

orange, lime, mango, avocado and passion fruit

production increased during the year, while

banana, papaw, pineapple, rambutan, guava and

melon registered a decline. Sri Lanka imported

54,107 metric tons of fresh fruits, incurring a

cost of Rs. 7.3 billion during 2016. This was an

increase of 19.8 per cent over the quantity

imported in 2015. As in the preceding year,

apples, oranges, mandarins and grapes were the

main varieties of fresh fruit imported.

Meanwhile, Sri Lanka exported 33,300 metric

tons of fresh fruits worth Rs. 5.0 billion during

2016, resulting in a trade deficit of Rs. 2.3

billion in 2016. Even though there is a good

export demand for local fruits and vegetables,

the inability to supply large quantities on a

continuous basis is a major constraint.

Establishing direct links between producers and

exporters, and further development of the

contract farming system are important to

improve the fruit and vegetable export market.

Textile The output of the textile subsector grew by

around 2.6 per cent during 2016. The growth of

this subsector was mainly fuelled by the

increase in domestic market demand for

textiles. In 2016, around US dollars 2.7 billion

was spent on textiles and textile articles imports

into Sri Lanka. This highlights the need for

exploring the possibility of improving capacity

in both the manufacture of domestic handlooms

and factories producing textiles. Given the fact

that some garment exporters require specific

materials, the industry may focus on producing

high value-added textiles helping the garment

industry to benefit from backward linkages in

the industrial sector. Such initiatives, while

enhancing domestic industrial activities, would

contribute to save the country’s foreign

exchange as well.

Apparel

The wearing apparel subsector, which is the

second largest subsector in FIPI, also witnessed

a slight contraction, reporting a decline of 2.4

per cent during 2016. Decline in export demand

from traditional markets in the USA and EU

was the key reason for the poor performance in

this subsector. However, a growth in garment

exports to non-traditional markets, such as

Canada, China, Australia and the United Arab

Emirates (UAE) was observed during 2016. It

is expected that the potential restoration of the

GSP+ facility would make a significant

contribution towards the development of the

apparel industry of the country with increased

exports to EU. However, once a country attains

and remains in the upper middle income

country category for three years, the GSP+

facility is terminated. Given the current

projected growth rates, Sri Lanka may reach

this status in the medium term. Therefore, it is

imperative that industry should gear to exploit

the full potential of GSP+ benefits within this

short period. Simultaneously, it is necessary to

consider an expansion of trade agreements with

EASL Annual Report 2016/2017 Page 31

potential partner countries to help local apparel

exporters diversify export destinations for

existing products. Further, it is necessary to

promote industrial relocation into more remote

areas, in particular the North and East

provinces, to address the labour shortages faced

by the industry. Moreover, given Sri Lanka’s

niche positioning as a high-quality supplier, Sri

Lanka should consider to position itself as a

regional apparel trade hub, taking advantage of

logistics infrastructure, geographical location

and the highly skilled labour force.

Fisheries

The fisheries sector expanded moderately in

2016. Fish production in 2016 increased by 2.1

per cent over 2015 to 530,920 metric tons. The

marine sector production, consisting of coastal

and off shore sub sectors, which accounted for

86.0 per cent of total fish production, increased

by 0.9 per cent to 456,990 metric tons. The

production of coastal fish marginally increased

by 1.9 per cent to 274,160 metric tons, while

the off shore fish production recorded a 0.6 per

cent decline to 182,830 metric tons. Fish

production of the inland fishery and

aquaculture sector, which accounts for the

balance 14.0 per cent of the total production,

increased significantly by 9.9 per cent

compared to 2015. Growth in the inland fishery

and aquaculture sectors was due to the increase

in the release of fingerlings to inland reservoirs

as well as improvements in the aquaculture

sector. Total fish imports decreased by 3.6 per

cent to 115,693 metric tons, while dried or

salted fish imports increased by 5.8 per cent to

34,978 metric tons during the year. Meanwhile,

canned fish imports decreased considerably by

24.3 per cent to 37,089 metric tons. With the

lifting of the European Union (EU) ban on Sri

Lankan sea food exports, with effect from 21

June 2016, the demand from the EU for Sri

Lankan fish varieties expanded. Accordingly,

fish exports to the EU increased significantly

by 23.1 per cent to 2,540 metric tons in 2016.

Going forward, addressing the large scale post

harvest losses in the fisheries sector due to poor

handling, estimated at around 25 per cent of the

catch, is vital in harnessing the full potential of

the industry.

Mining and Quarrying

Mining and quarrying activities grew by 14.4

per cent in 2016 in value added terms

recovering from 5.2 per cent contraction

recorded in 2015. The significant recovery in

construction activities stimulated the expansion

in mining and quarrying activities. Further, this

recovery was reflected in the mineral exports

volume index which increased by 7.9 per cent

in 2016 recovering from 48.1 per cent

contraction in 2015. Moreover, gem exports

increased by 8.4 per cent in quantity during the

year against 17.1 per cent decline in 2015. The

production of rutile and zircon expanded during

the year, while that of ilmenite contracted. On

the other hand, phosphate production

contracted during the year mainly driven by the

low demand for fertiliser manufacturing.

Table: 06

Code Product 2012 2013%

Growth2014

%

Growth2015

%

Growth2016

%

Growth

% Contributution

to Total Exports

to 2016

2012-2016 %

Avg. Growth

1 Agricultural Products 2,248.40 2,479.90 10.30 2,698.99 8.83 2,463.75 -8.72 2,316.49 -5.98 20.67 0.53

1.1 Tea 1,397.92 1,526.74 9.22 1,609.71 5.43 1,324.51 -17.72 1,252.25 -5.46 11.17 -3.62

1.2 Natural Rubber 125.09 71.60 -42.76 45.60 -36.31 26.37 -42.17 32.87 24.65 0.29 -36.72

1.3 Coconut 360.51 360.14 -0.10 537.52 49.25 522.69 -2.76 547.64 4.77 4.89 12.09

1.3.1 Coocnut Kernel Products 127.53 127.20 -0.26 271.17 113.18 285.24 5.19 293.15 2.77 2.62 24.72

1.3.2 Coconut Fibre Products 150.15 146.79 -2.24 175.65 19.66 157.14 -10.54 175.35 11.59 1.56 3.78

1.3.3 Coconut Shell Products 82.83 86.15 4.01 90.70 5.28 80.31 -11.46 79.14 -1.46 0.71 -1.61

1.4 Other Agricultural Products 364.88 521.41 42.90 506.15 -2.93 590.18 16.60 483.73 -18.04 4.32 6.88

1.4.1 Spices 235.53 329.42 39.86 234.22 -28.90 339.17 44.81 263.94 -22.18 2.35 2.57

1.4.2 Vegetables 15.06 19.69 30.74 24.77 25.80 25.32 2.22 23.74 -6.24 0.21 11.61

1.4.3 Fruits 18.13 29.19 61.00 44.32 51.83 38.11 -14.01 34.77 -8.76 0.31 15.69

1.4.4 Cut Flowers & Foliage 10.41 14.17 36.12 14.86 4.87 13.91 -6.39 13.63 -2.01 0.12 5.21

1.4.5 Essential Oils 17.42 23.25 33.47 26.08 12.17 33.94 30.14 47.60 40.25 0.42 23.88

1.4.6 Othes of Other Export Crops 68.32 105.68 54.68 161.91 53.21 139.73 -13.70 100.05 -28.40 0.89 10.42

2 Fisheries Products 205.17 244.43 19.14 265.23 8.51 180.58 -31.92 182.30 0.95 1.63 -5.39

2.1 Ornamental Fish 7.57 10.70 41.35 12.53 17.10 17.52 39.82 12.69 -27.57 0.11 15.25

2.2 Crutaceans 29.20 44.12 51.10 54.68 23.93 35.18 -35.66 39.34 11.82 0.35 3.70

2.3 Edible Fish 168.39 189.61 12.60 198.02 4.44 127.88 -35.42 130.27 1.87 1.16 -9.07

3 Industrial Exports 6,697.31 7,231.47 7.98 8,025.11 10.97 7,534.69 -6.11 7,672.81 1.83 68.45 3.13

3.1 Diamonds. Gems & Jewellery 558.90 437.60 -21.70 393.60 -10.05 331.70 -15.73 273.90 -17.43 2.44 -20.27

3.2 Textiles & Garments 3,964.63 4,492.20 13.31 4,908.30 9.26 4,801.99 -2.17 4,866.40 1.34 43.41 4.77

3.3 Manufactures 2,275.39 2,239.44 -1.58 2,439.56 8.94 2,305.81 -5.48 2,427.92 5.30 21.66 1.59

Food, Feed, Beverages & Tobacco 359.93 278.25 -22.69 317.10 13.96 302.18 -4.71 427.17 41.36 3.81 4.25

Leather Products 18.95 21.61 14.04 22.96 6.25 23.66 3.05 22.00 -7.02 0.20 3.89

Wooden Products 64.98 64.09 -1.37 63.85 -0.37 55.28 -13.42 60.11 8.74 0.54 -3.04

Paper & Paper Products 89.95 72.67 -19.21 79.94 10.00 76.89 -3.82 85.92 11.74 0.77 -0.35

Rubber Finished Products 856.68 887.42 3.59 889.40 0.22 760.92 -14.45 767.69 0.89 6.85 -3.73

Chemical Products 35.34 33.94 -3.96 47.60 40.25 50.25 5.57 48.54 -3.40 0.43 10.27

Plastic Products 56.87 60.11 5.70 70.49 17.27 65.83 -6.61 70.35 6.87 0.63 5.16

Non - Metallic Mineral Products 116.31 118.93 2.25 125.11 5.20 117.84 -5.81 109.44 -7.13 0.98 -1.31

Electronic, Electrical, Machinery- products & parts 296.85 312.32 5.21 343.40 9.95 293.86 -14.43 317.75 8.13 2.83 0.75

Transport Equipment & Parts 99.09 50.13 -49.41 56.69 13.09 55.04 -2.91 58.18 5.70 0.52 -9.71

Boat Building 56.59 82.00 44.90 86.26 5.20 181.61 110.54 64.76 -64.34 0.58 10.65

Footwear 12.24 29.27 139.13 86.57 195.76 86.31 -0.30 117.63 36.29 1.05 56.06

Other Manufactures 87.89 89.23 1.52 105.78 18.55 102.57 -3.03 108.67 5.95 0.97 5.64

3.4 Petroleum Products 463.00 428.00 -7.56 369.59 -13.65 373.90 1.17 286.90 -23.27 2.56 50.42

4 Products Unclassified 58.08 72.73 25.22 54.85 -24.58 88.69 61.70 1.26 -98.58 0.01 7.45

Total- Merchandise Exports 9,773.59 10,394.34 6.35 11,130.09 7.08 10,546.50 -5.24 10,309.70 -2.25 91.97 2.20

5 Communication, Computer & Information Technology 673.00 719.00 6.84 748.00 4.03 847.00 13.24 900.00 6.26 8.03 7.45

Grand Total 10,446.59 11,113.34 6.38 11,878.09 6.88 11,393.50 -4.08 11,209.70 -1.61 100.00 1.66

Export Performance of Major Product Sectors- Annual Growth & Average Growth 2012-2016Value in Millions of US Dollars

Sources: Sri Lanka Customs, Central Bank of Sri Lanka / Sri Lanka Export Development Board

11

Sec. No. Product 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016%

Contribution

2015-2016

% Growth

2007-2016

Av. GrowthS.01 Tea

S.0101 Tea Packets 254.49 349.36 327.45 549.32 718.17 666.14 715.34 781.41 593.84 594.86 5.31 0.17 9.95

S.0102 Tea Bags 145.81 174.98 183.79 131.46 9.66 4.19 6.99 15.28 9.98 7.97 0.07 -20.14 -41.38

S.0103 Tea in Bulk 509.15 615.29 588.03 651.14 697.41 700.42 784.94 790.42 705.51 633.35 5.65 -10.23 3.01

S.0104 Instant Tea 8.92 11.39 9.78 11.28 0.45 0.06 0.06 0.02 - 0.01 0.00 - -99.98

S.0105 Green Tea 1.29 1.84 2.56 3.40 4.02 4.09 4.61 6.82 5.46 5.12 0.05 -6.23 15.67

S.0199 Other Tea nes 105.45 118.19 73.81 92.55 46.47 23.01 14.81 15.76 9.73 10.93 0.10 12.33 -31.39

Total 1025.11 1271.05 1185.42 1439.15 1476.18 1397.91 1526.75 1609.71 1324.52 1252.24 11.17 -5.46 2.27

S.02 Natural Rubber

S.020101 Latex Rubber 9.59 16.86 0.76 1.78 0.28 0.06 0.58 0.55 - 0.13 0.00 - -76.77

S.020102 Sheet Rubber 36.32 42.34 42.34 68.50 62.77 38.30 13.59 4.49 1.61 2.66 0.02 65.22 -38.18

S.020103 Technically Specified Rubber 9.94 10.94 8.97 8.50 14.40 12.31 6.02 2.33 1.02 1.75 0.02 71.57 -24.37

S.020104 Crepe Rubber 48.59 50.29 29.78 72.58 116.20 63.80 47.21 34.86 22.56 25.74 0.23 14.10 -7.53

S.020105 Block Rubber 1.91 1.90 1.92 0.78 2.07 0.54 1.05 0.01 0.04 0.08 0.00 100.00 -48.98

S.020199 Other Natural Rubber nes 3.00 3.02 15.08 21.61 11.28 10.08 3.16 3.36 1.15 2.52 0.02 119.13 -13.16

Total 109.35 125.35 98.85 173.75 207.00 125.09 71.61 45.60 26.38 32.88 0.29 24.64 -17.43

S.03 Coconut

S.0301 Coconut Kernel Products

S.030101 Coconut Oil 1.76 3.93 4.42 5.20 7.73 9.94 17.14 58.42 121.16 93.96 0.84 -22.45 46.37

S.030102 Desiccated Coconut 54.34 64.68 50.05 49.05 126.46 68.85 68.54 148.94 99.79 120.41 1.07 20.66 9.72

S.030103 Copra 10.90 13.71 3.72 0.65 2.47 0.68 0.11 6.90 0.74 1.71 0.02 131.08 -24.68

S.030104 Coconut Fresh Nuts 11.66 12.44 16.29 11.93 6.40 7.81 0.40 1.21 2.26 3.07 0.03 35.84 -28.45

S.030105 Coconut Milk Powder 9.54 16.20 15.58 14.73 22.84 20.12 21.82 27.60 26.05 28.63 0.26 9.90 10.38

S.030106 Coconut Cream 1.83 3.97 3.11 3.13 6.03 5.18 4.08 6.00 8.91 9.42 0.08 5.72 14.74

S.030107 Liquid Coconut Milk 6.25 5.97 5.05 8.73 10.20 8.46 10.45 13.99 18.27 24.17 0.22 32.29 15.42

S.030108 Poonac 1.27 1.04 3.44 2.70 1.82 2.14 0.06 0.71 1.07 4.58 0.04 328.04 -4.43

S.030109 Defatted Coconut 2.85 4.16 2.63 3.27 7.45 4.36 4.61 7.41 6.99 7.19 0.06 2.86 10.69

Sub Total- Coconut Kernel Products 100.40 126.10 104.29 99.39 191.40 127.54 127.21 271.18 285.24 293.14 2.62 2.77 12.40

S.0302 Coconut Fibre Products

S.030201 Bristle Fiber 17.45 32.64 4.92 2.77 3.26 2.25 3.04 4.78 3.88 4.35 0.04 12.11 -16.76

S.030202 Mattress Fiber 12.37 18.49 31.09 31.21 36.33 25.38 23.36 26.19 18.42 15.33 0.14 -16.78 -0.11

S.030203 Mixed Coir Fiber 15.92 14.42 4.94 5.92 9.59 16.09 10.54 19.16 12.17 11.10 0.10 -8.79 2.78

S.030204 Coir Yarn 1.04 1.25 1.61 2.91 0.61 1.22 1.40 1.69 1.90 0.97 0.01 -48.95 0.64

S.030205 Coco Peat & Fiber Pith 14.48 1.07 36.14 52.00 66.04 68.35 74.46 82.15 84.33 104.93 0.94 24.43 32.49

S.030206 Brooms & Brushes 10.07 11.32 9.85 10.10 13.25 11.35 11.82 13.02 11.93 11.64 0.10 -2.43 2.05

S.030207 Carpets, Mats, Floor Coverings 7.15 5.66 3.62 3.78 6.35 5.27 5.41 6.09 5.11 3.56 0.03 -30.33 -2.12

S.030208 Coconut Husk Chips 4.00 5.27 9.57 5.93 6.10 6.82 5.43 6.78 7.66 10.08 0.09 31.59 5.49

S.030209 Coir Pads 2.07 2.35 2.24 2.16 2.23 2.27 2.04 2.84 1.44 0.94 0.01 -34.72 -5.76

S.030210 Coir Twine & Ropes 3.24 4.36 5.45 4.34 7.86 8.15 5.56 8.97 6.66 8.04 0.07 20.72 8.74

S.030211 Geo Textiles 3.01 3.09 1.90 2.77 4.00 3.00 3.73 3.98 3.63 4.42 0.04 21.76 5.40

Sub Total- Coconut Fibre Products 90.80 99.92 111.33 123.89 155.62 150.15 146.79 175.65 157.13 175.36 1.56 11.60 7.18

S.0303 Coconut Shell Products

S.030301 Activated Carbon 27.60 34.31 42.79 51.07 71.65 76.92 81.18 84.12 74.09 74.99 0.67 1.21 11.65

S.030302 Coconut Shell Pieces 0.13 0.09 0.07 0.08 0.08 0.21 0.08 0.11 0.08 0.12 0.00 50.00 1.33

S.030303 Coconut Shell Powder 0.26 0.23 0.15 0.20 0.13 0.06 0.10 0.07 0.10 0.04 0.00 -60.00 -17.65

S.030304 Coconut Shell Charcoal 0.80 0.98 1.13 1.31 2.52 3.70 3.34 4.74 4.82 2.60 0.02 -46.06 19.48

S.030305 Coconut Ekels 0.81 0.97 1.00 1.10 1.51 1.94 1.46 1.66 1.23 1.38 0.01 12.20 6.11

Sub Total- Coconut Shell Products 29.60 36.58 45.14 53.76 75.89 82.83 86.16 90.70 80.32 79.13 0.71 -1.48 11.73

Total Coconut Products 220.80 262.60 260.76 277.04 422.91 360.52 360.16 537.53 522.69 547.63 4.89 4.77 10.45

Table: 9 (Continued Pages 15-20)

Disaggregated Export Performance 2007-2016

Value in Millions of US Dollars

15

Sec. No. Product 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016%

Contribution

2015-2016

% Growth

2007-2016

Av. Growth

Value in Millions of US Dollars

S.04 Other Export Crops

S.0401 Spices

S.040101 Pepper 31.95 26.39 20.58 44.95 30.76 67.93 126.67 69.17 144.07 72.18 0.64 -49.90 17.68

S.040102 Cinnamon 75.50 82.70 74.18 91.44 121.18 129.53 132.39 132.28 131.18 159.07 1.42 21.26 8.49

S.040103 Cloves 9.24 33.12 12.02 37.93 35.47 18.13 49.44 13.85 47.89 13.46 0.12 -71.89 4.12

S.040104 Nutmeg & Mace 7.61 8.98 8.09 16.52 25.61 19.69 20.76 18.62 14.96 13.48 0.12 -9.89 8.07

S.040105 Cardamoms 0.13 0.27 0.24 0.34 0.59 0.25 0.17 0.30 1.08 5.75 0.05 432.41 25.46

Sub Total- Spices 124.43 151.46 115.11 191.18 213.61 235.53 329.43 234.22 339.18 263.94 2.35 -22.18 10.72

S.0402 Vegetables

S.040201 Onions 0.15 0.02 0.02 0.08 0.24 0.06 0.14 0.05 0.04 0.06 0.001 50.00 -0.02

S.040202 Tomato 0.01 0.02 0.01 ... ... 0.10 0.03 0.02 - 0.01 - - 0.20

S.040203 Garlic 0.01 0.01 0.03 0.03 0.04 0.01 0.03 0.05 0.02 0.10 0.001 400.00 16.41

S.040205 Carrots 0.01 - - 0.01 - - 0.03 - - 0.01 0.00 - 18.11

S.040206 Potatoes 0.01 0.01 - 0.01 0.01 0.07 - - - - - - -17.43

S.040207 Sweat Potatoes - - - 0.01 0.01 0.01 - 0.01 0.01 0.03 0.00 200.00 45.28

S.040208 Gherkins 0.95 0.90 0.55 0.52 0.46 0.49 0.90 1.36 0.93 0.89 0.01 -4.30 3.59

S.040209 Mushroom 0.03 0.19 0.58 0.78 0.51 0.94 2.51 1.76 1.49 1.42 0.01 -4.70 35.48

S.040210 Manioc 1.08 1.36 2.05 1.29 2.89 1.39 1.66 2.49 2.88 3.26 0.03 13.19 9.80

S.040211 Kiri Ala 0.41 0.44 0.53 0.38 0.51 0.43 0.37 0.44 0.36 0.33 0.00 -8.33 -2.81

S.040212 Chilies - 0.41 0.72 0.68 0.87 0.86 0.87 1.00 0.95 1.28 0.01 34.74 -

S.040213 Turmeric 0.12 0.37 0.12 0.11 0.28 0.19 0.31 0.45 0.40 0.50 0.00 25.00 13.60

S.040214 Ginger 0.33 0.39 0.34 0.42 1.38 0.95 0.22 0.54 0.54 0.89 0.01 64.81 6.71

S.040299 Other Vegetables nes 8.41 9.63 7.09 12.00 11.35 9.56 12.63 16.57 17.70 14.96 0.13 -15.48 8.28

Sub Total- Vegetables 11.52 13.75 12.04 16.32 18.55 15.06 19.70 24.74 25.32 23.74 0.21 -6.24 8.92

S.0403 Fruits

S.040301 Pineapples 2.76 3.80 1.69 1.83 1.80 1.52 2.96 4.91 5.06 3.96 0.04 -21.74 7.18

S.040302 Tamarind 0.25 0.29 0.11 0.20 0.20 0.57 0.10 0.55 0.08 0.18 0.00 125.00 -2.74

S.040303 Goraka (Garzenia) 0.92 1.59 1.44 1.90 1.98 2.55 7.42 8.07 4.29 2.33 0.02 -45.69 17.13

S.040304 Bananas 0.46 0.81 1.11 1.95 4.08 6.38 8.45 16.50 15.86 16.33 0.15 2.96 43.20

S.040305 Lemons 0.74 1.30 1.27 1.34 0.97 0.35 0.36 0.64 0.76 0.13 0.00 -82.89 -16.98

S.040306 Melons & Papayas 0.33 0.93 0.47 0.62 0.74 0.80 1.16 1.87 1.93 2.54 0.02 31.61 19.58

S.040399 Other Fruits nes 5.75 5.27 6.19 8.36 7.60 5.97 8.74 11.77 10.14 9.31 0.08 -8.19 7.28

Sub Total- Fruits 11.21 13.99 12.28 16.20 17.37 18.14 29.19 44.31 38.12 34.78 0.31 -8.76 15.41

S.0404 Cut Flowers & Foliage 12.04 14.18 11.45 13.49 14.76 10.41 14.17 14.86 13.91 13.63 0.12 -2.01 1.26

S.0405 Essential Oils 8.88 7.81 4.83 14.92 18.18 17.42 23.25 26.08 33.94 47.60 0.42 40.25 21.29

S.0406 Others of Other Export crops

S.040601 Unmanufactured Tobacco 40.18 39.58 33.55 32.23 38.41 42.10 47.62 41.32 31.80 31.17 0.28 -1.98 -0.92

S.040602 Betel Leaves 4.08 6.65 5.99 6.48 6.86 5.05 10.60 10.54 9.13 7.74 0.07 -15.22 7.26

S.040603 Cashew Nuts 1.05 1.43 1.17 2.28 2.64 1.71 1.42 1.83 1.57 0.98 0.01 -37.58 0.26

S.040604 Oil Seed 0.64 0.37 1.63 9.72 0.53 2.51 10.43 6.19 4.70 4.46 0.04 -5.11 26.51

S.040605 Coffee 0.14 0.24 0.13 0.13 0.08 0.06 0.12 0.23 0.18 0.14 0.00 -22.22 0.02

S.040606 Areca Nuts 0.90 3.40 1.38 2.30 2.49 3.84 16.64 64.66 69.85 34.08 0.30 -51.21 48.18

S.040607 Black Gram 0.02 0.03 0.02 0.03 0.04 - 0.12 0.01 0.29 0.02 0.00 -93.10 6.84

S.040608 Cowpea - 0.01 - 0.03 0.01 - 2.28 2.02 1.12 1.67 0.01 49.11 83.15

S.040609 Green Gram 0.03 0.03 0.04 0.62 0.20 0.03 0.05 0.06 1.61 1.76 0.02 9.32 34.16

S.040610 Lentils 0.12 12.41 19.83 16.52 7.77 7.45 7.81 21.85 8.81 5.51 0.05 -37.46 18.13

S.040699 Other Export Crops nes 3.12 3.88 3.74 3.79 5.41 5.57 8.60 13.20 10.68 12.54 0.11 17.42 17.21

Sub Total- Others of Other Export Crops 50.28 68.03 67.48 74.13 64.44 68.32 105.69 161.91 139.74 100.07 0.89 -28.39 10.14

Total - Other Export Crops 218.36 269.22 223.19 326.24 346.91 364.88 521.43 506.12 590.21 483.76 4.32 -18.04 11.03

S.05 Fisheries Products

S.0501 Edible Fish Products

S.050101 Frozen Fish 83.32 84.55 80.47 83.86 60.56 69.79 123.31 136.93 78.20 69.14 0.62 -11.59 1.0516

Sec. No. Product 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016%

Contribution

2015-2016

% Growth

2007-2016

Av. Growth

Value in Millions of US Dollars

S.050102 Fish Fresh or Chilled 39.29 51.13 57.73 61.23 72.10 79.67 42.34 43.69 36.42 46.81 0.42 28.53 -1.94

S.050103 Prawns 22.38 10.00 14.14 14.24 16.28 13.12 19.46 25.85 14.43 16.87 0.15 16.91 2.28

S.050104 Lobsters 3.20 3.72 2.79 7.82 5.39 2.80 8.61 8.79 5.72 4.48 0.04 -21.68 6.93

S.050105 Crabs 4.66 5.99 9.09 8.92 14.51 13.29 16.05 20.04 15.04 17.99 0.16 19.61 14.68

S.050199 Other Edible Fish nes 9.63 9.23 6.37 16.09 16.41 18.93 23.96 17.41 13.25 14.32 0.13 8.08 7.56

Sub Total- Edible Fish Products 162.48 164.62 170.59 192.16 185.25 197.60 233.73 252.71 163.06 169.61 1.51 4.02 1.78

S.0502 Ornamental Fish 8.20 8.98 8.52 10.08 10.06 7.57 10.70 12.53 17.52 12.69 0.11 -27.57 6.32

Total- Fish Products 170.68 173.60 179.11 202.24 195.31 205.17 244.43 265.24 180.58 182.30 1.63 0.95 2.09

S.06 Diamonds. Gems & Jewellery

S.0601 Diamonds 348.50 420.58 316.82 321.52 414.33 416.73 293.40 198.30 148.40 104.50 0.93 -29.58 -12.04

S.0602 Gems 106.80 101.01 68.92 70.25 95.24 117.93 122.60 173.00 164.10 149.30 1.33 -9.02 -5.42

S.0603 Jewellery 19.61 17.32 13.55 17.00 22.00 24.24 21.60 22.30 19.20 20.10 0.18 4.69 -0.09

Total 474.91 538.91 399.29 408.77 531.57 558.90 437.60 393.60 331.70 273.90 2.44 -17.43 -8.93

S.07 Textiles & Garments

S.0701 Woven Fabrics 70.30 74.37 68.91 86.13 98.18 104.01 115.55 115.86 128.72 128.59 1.15 -0.10 7.76

S.0702 Apparel 3144.31 3282.44 3119.89 3178.21 3985.78 3776.13 4264.89 4681.50 4554.75 4602.08 41.05 1.04 5.20

S.0703 Made-Up Textile Articles 58.10 49.08 36.71 47.26 47.82 41.94 47.10 53.87 62.97 70.11 0.63 11.34 3.16

S.0799 Other Textile Articles nes 34.09 32.83 23.29 30.18 40.37 42.57 64.66 57.07 55.55 65.62 0.59 18.13 9.94

Total- Textiles & Garments 3306.80 3438.72 3248.80 3341.78 4172.15 3964.65 4492.20 4908.30 4801.99 4866.40 43.41 1.34 5.28

S.08 Manufactures

S.0801 Food, Feed, Beverages & Tobacco

S.080101 Processed Vegetables, Fruits & Juices 4.15 3.49 3.20 5.90 6.02 8.99 13.13 16.85 21.63 24.99 0.22 15.53 24.27

S.080102 Confectionary & Bakery Products 9.15 14.25 17.43 34.84 44.68 38.71 33.18 32.09 26.52 25.48 0.23 -3.92 9.89

S.080103 Processed Food 205.73 84.55 47.23 67.14 94.84 73.44 67.04 90.40 64.75 190.22 1.70 193.78 0.25

S.080104 Rice & Cereals 51.24 65.59 45.28 80.09 156.69 104.46 47.33 50.54 43.39 30.69 0.27 -29.27 -5.42

S.080105 Beverages 3.86 4.39 2.80 6.42 5.96 5.61 9.33 15.19 21.19 26.64 0.24 25.72 22.98

S.080106 Manufactured Tobacco 23.42 27.53 24.27 25.52 40.90 47.12 49.09 55.72 57.71 73.13 0.65 26.72 13.14

S.080107 Animal Feed 37.52 58.57 62.93 67.22 58.47 81.61 59.15 56.31 67.00 56.02 0.50 -16.39 2.39

Sub Total-Food, Feed, Beverages & Tobacco 335.07 258.37 203.14 287.13 407.56 359.94 278.25 317.10 302.19 427.17 3.81 41.36 3.21

S.0802 Leather & Leather Products

S.080201 Raw Hides & Skins 1.07 0.59 0.34 0.65 0.43 0.47 0.31 0.56 0.60 0.61 0.01 1.67 -2.80

S.080202 Travel Goods, Bags etc. 7.27 4.94 3.28 2.86 2.26 2.85 2.37 2.03 2.71 2.59 0.02 -4.43 -9.85

S.080203 Industrial Gloves, Belts etc. of Leather 8.44 11.11 9.92 12.41 17.04 15.64 18.93 20.37 20.36 18.80 0.17 -7.66 9.83

Sub Total- Leather & Leather Products 16.78 16.64 13.54 15.92 19.73 18.96 21.61 22.96 23.67 22.00 0.20 -7.06 5.10

S.0803 Wood & Wooden Products

S.080301 Furniture & Seats 13.37 13.75 10.78 15.26 17.32 15.12 17.97 18.85 18.15 26.83 0.24 47.82 6.89

S.080302 Jewellery Boxes, Cloth Hangers and Handicraft 8.18 7.90 7.48 9.68 11.31 10.30 9.15 11.24 9.47 10.31 0.09 8.87 3.10

S.080304 Fuel Wood & Charcoal 0.82 0.16 0.79 0.36 0.41 0.65 0.43 0.38 0.46 0.57 0.01 23.91 0.98

S.080305 MDF Boards 28.21 25.28 9.66 20.89 27.54 30.50 30.58 25.14 19.59 15.98 0.14 -18.43 -0.53

S.080306 Plywood, Densified/Particle Boards 0.48 0.49 0.83 0.69 1.05 2.26 0.56 0.40 0.17 0.41 0.00 141.18 -7.45

S.080307 Builders Joinery, Flooring Panels 1.36 0.32 0.13 0.33 0.07 0.05 0.06 0.39 0.16 0.22 0.00 37.50 -12.69

S.080399 Other Wooden Products nes 6.71 7.50 5.63 6.31 7.51 6.10 5.34 7.44 7.27 5.80 0.05 -20.22 -0.51

Sub Total- Wood & Wooden Products 59.13 55.40 35.30 53.52 65.21 64.98 64.09 63.84 55.27 60.12 0.54 8.78 2.20

S.0804 Paper & Paper products

S.080401 Waste & Scrap of Paper /Paper Boards 15.33 19.07 13.12 19.38 29.41 24.79 26.37 32.90 31.73 32.04 0.29 0.98 9.42

S.080402 Stationery

S.08040201 Envelopes, Letter Cards, Post Cards 0.93 0.71 0.71 0.69 1.17 1.19 1.54 1.45 2.17 1.31 0.01 -39.63 10.28

S.08040202 Registers, Account Books, Diaries 3.58 3.25 3.47 2.69 2.44 2.53 2.78 2.45 1.65 2.36 0.02 43.03 -6.10

S.08040203 Labels Printed or Not 7.40 8.65 7.55 10.17 10.70 8.51 11.27 10.31 10.34 10.05 0.09 -2.80 3.42

S.08040301 Books & Printed Matter 5.83 7.11 6.92 11.38 11.20 32.53 7.40 7.52 6.81 5.40 0.05 -20.70 -0.4917

Sec. No. Product 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016%

Contribution

2015-2016

% Growth

2007-2016

Av. Growth

Value in Millions of US Dollars

S.08040302 Cartoons, Boxes & Bags 6.16 7.33 6.07 8.47 11.31 14.63 17.18 19.06 17.85 24.88 0.22 39.38 16.30

S.08040399 Other Paper Products nes 1.98 2.90 2.27 3.80 5.35 5.78 6.13 6.26 6.35 9.88 0.09 55.59 16.08

Sub-Sub Total- Stationery 25.88 29.95 26.99 37.20 42.17 65.17 46.30 47.05 45.17 53.88 0.48 19.28 8.08

Sub Total- Paper & Paper products 41.21 49.02 40.11 56.58 71.58 89.96 72.67 79.95 76.90 85.92 0.77 11.73 8.60

S.0805 Rubber Finished Products

S.080501 Rubber Plates, Sheets Rods of Vulcanized or Unhardened 10.91 10.14 12.21 17.21 39.25 59.65 54.83 47.76 32.54 21.63 0.19 -33.53 15.17

S.080502 Pneumatic & Retreated Rubber Tyres & Tubes 310.33 337.97 214.27 337.78 571.40 541.22 554.60 567.59 470.58 479.46 4.28 1.89 7.60

S.080503 Industrial & Surgical Gloves of Rubber 110.55 117.22 113.87 136.92 180.98 176.34 195.40 175.93 164.67 175.99 1.57 6.87 5.93

S.080504 Gaskets, Washers, Seals etc. of Hard Rubber 48.40 71.89 41.47 62.84 89.53 76.71 79.87 95.56 90.86 88.40 0.79 -2.71 7.15

S.080599 Other Rubber Products nes 2.72 2.69 2.50 2.06 2.99 2.76 2.72 2.57 2.27 2.21 0.02 -2.64 -1.33

Sub Total- Rubber Finished Products 482.91 539.91 384.32 556.81 884.15 856.68 887.42 889.41 760.92 767.69 6.85 0.89 7.36

S.0806 Chemical & Plastic Products

S.080601 Chemical Products

S.08060101 Inorganic Chemicals 12.23 11.88 6.39 11.11 13.31 12.40 9.74 11.99 9.82 8.17 0.07 -16.80 -1.38

S.08060102 Organic Chemicals 1.23 0.77 0.74 1.29 1.38 0.86 0.33 0.52 0.47 0.69 0.01 46.81 -9.13

S.08060103 Wadding Gauze, Bandages & Similar Pharmaceutical Articles 2.23 2.25 2.02 2.20 2.34 2.14 2.57 4.40 3.92 2.90 0.03 -26.02 6.37

S.08060104 Fertilizer 0.27 0.54 0.35 0.35 0.46 0.65 0.60 1.51 0.90 1.11 0.01 23.33 15.53

S.08060105 Paints, Varnishes and Dyeing Extracts 3.19 3.23 3.00 3.14 3.33 2.29 4.05 7.95 7.53 7.40 0.07 -1.73 11.37

S.08060106 Perfumes, Cosmetics, Shampoos & Makeup Preparations 5.30 6.04 6.32 9.56 9.82 7.15 5.79 8.18 9.46 7.08 0.06 -25.16 3.17

S.08060107 Soap, Washing Preparations, Waxes, Candles etc. 3.99 3.66 3.95 5.18 4.91 3.59 4.22 7.58 11.73 14.98 0.13 27.71 13.57

S.08060199 Other Chemical Products nes 6.30 3.76 3.32 4.64 6.88 6.25 6.64 5.47 6.42 6.20 0.06 -3.43 4.30

Sub- Sub Total- Chemical Products 34.74 32.13 26.09 37.47 42.43 35.33 33.94 47.60 50.25 48.53 0.43 -3.42 5.25

S.080602 Plastic Products

S.08060201 Starches, Glues, Enzymes 4.84 4.61 5.10 4.68 4.48 4.49 5.20 3.77 3.39 4.04 0.04 19.17 -3.03

S.08060202 Gloves, Mitts & Mittens 0.01 2.17 6.28 6.76 4.45 4.69 6.43 12.20 12.79 8.93 0.08 -30.18 50.10

S.08060203 Sacs & Bags of Plastics 32.11 32.26 21.58 25.29 31.42 28.90 30.06 35.49 31.83 31.54 0.28 -0.91 1.62

S.08060204 Other Products of Plastics nes 24.70 22.39 11.64 14.67 18.92 18.78 18.41 19.03 17.83 25.84 0.23 44.92 1.18

Sub-Sub Total- Plastic Products 61.66 61.43 44.60 51.40 59.27 56.86 60.10 70.49 65.84 70.35 0.63 6.85 2.65

Sub Total- Chemical & Plastic Products 96.40 93.56 70.69 88.87 101.70 92.19 94.04 118.09 116.09 118.88 1.06 2.40 3.66

S.0807 Non-Metallic Mineral Products

S.080701 Natural Sands

S.08070101 Silica & Quarts 4.41 5.80 3.93 4.99 5.73 8.62 9.63 10.44 8.67 10.00 0.09 15.34 10.58

S.08070102 Mica & Mica Waste 1.12 0.87 0.93 0.82 1.27 1.26 0.95 1.34 0.72 0.74 0.01 2.78 -1.68

S.08070103 Graphite 1.75 1.88 1.16 1.30 1.37 4.31 4.32 4.66 3.90 4.52 0.04 15.90 15.35

S.08070199 Other Natural Sands nes 6.03 4.70 3.43 7.13 9.01 0.94 2.03 1.54 1.75 3.10 0.03 77.14 -13.91

Sub-Sub Total- Natural Sands 13.31 13.25 9.45 14.24 17.38 15.13 16.93 17.98 15.04 18.36 0.16 22.07 4.47

S.080702 Articles of Stones

S.08070201 Worked Monumental Stones 16.11 6.92 3.60 5.66 18.11 16.74 16.45 17.88 16.47 17.11 0.15 3.89 10.76

S.08070299 Other Articles of Stones nes 1.22 1.13 1.26 1.13 4.35 6.50 8.32 11.63 11.45 12.74 0.11 11.27 33.25

Sub-Sub Total- Articles of Stones 17.33 8.05 4.86 6.79 22.46 23.24 24.77 29.51 27.92 29.85 0.27 6.91 16.08

S.080703 Ceramic & Porcelain Products

S.08070301 Wall Tiles 11.27 11.45 7.87 8.00 5.55 6.28 7.96 8.76 7.10 6.82 0.06 -3.94 -4.37

S.08070302 Tableware & Kitchenware 30.31 30.20 24.14 26.77 27.53 25.26 28.76 28.96 24.78 23.15 0.21 -6.58 -1.68

S.08070303 Ornaments 4.91 7.14 4.33 4.91 4.92 3.72 3.42 3.17 2.74 3.74 0.03 36.50 -7.31

S.08070399 Other Ceramic Products nes 0.36 0.21 0.13 0.26 0.33 0.45 0.30 0.43 0.54 0.69 0.01 27.78 11.69

Sub- Sub Total- Ceramic & Porcelain Products 46.85 49.00 36.47 39.94 38.33 35.71 40.44 41.32 35.16 34.40 0.31 -2.16 -2.73

S.080704 Other Non- Metallic Mineral Products

S.08070401 Glass & Glassware 4.16 6.57 13.54 12.21 16.48 14.60 29.59 25.91 26.25 15.97 0.14 -39.16 16.72

S.08070402 Mineral Sands 10.48 8.12 6.85 9.99 15.48 27.57 7.14 10.30 13.37 10.75 0.10 -19.60 3.23

S.08070403 Natural Salt 0.76 0.05 0.16 0.04 0.04 0.05 0.05 0.08 0.09 0.08 0.00 -11.11 -11.17

Sub- Sub Total- Other Non- Metallic Mineral Products 15.40 14.74 20.55 22.24 32.00 42.22 36.78 36.29 39.71 26.80 0.24 -32.51 10.0318

Sec. No. Product 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016%

Contribution

2015-2016

% Growth

2007-2016

Av. Growth

Value in Millions of US Dollars

Sub Total- Non-Metallic Mineral Products 92.89 85.04 71.33 83.21 110.17 116.30 118.92 125.10 117.83 109.41 0.98 -7.15 4.66

S.0808 Base Metal Products

S.080801 Structures of Iron & Aluminum 3.87 4.94 4.93 4.49 4.55 1.89 1.94 3.56 3.04 8.69 0.08 185.86 -0.68

S.080802 Standard Wire of Aluminum, Copper & Iron 3.96 6.45 7.49 16.24 12.11 10.01 4.96 3.39 5.84 10.56 0.09 80.82 0.25

S.080803 Nails, Screws, Bolts & Nuts of Metal 4.99 4.16 0.77 0.98 0.73 0.35 0.30 0.38 0.51 4.38 0.04 758.82 -14.38

S.080804 Refined Copper & Lead Alloys 42.99 22.01 7.41 16.86 13.22 11.16 18.43 13.62 11.00 13.25 0.12 20.45 -7.46

S.080805 Tools, Implements, Cutlery & Parts 4.13 4.93 3.10 8.98 11.67 13.23 6.91 8.67 7.46 7.62 0.07 2.14 7.81

S.080806 Scrap of Ferrous, Aluminum, Copper & Other Metals 1.64 2.41 1.11 1.19 1.70 4.19 1.82 1.07 1.61 3.31 0.03 105.59 3.32

S.080899 Other Products of Base Metal nes 19.22 12.15 11.30 14.50 12.28 15.30 25.02 31.76 26.35 41.77 0.37 58.52 11.78

Sub Total- Base Metal Products 80.80 57.05 36.11 63.24 56.26 56.13 59.38 62.45 55.81 89.58 0.80 60.51 2.01

S.0809 Engineering Products

S.080901 Electronic, Electrical & Machinery- Products & Parts

S.08090101 Electrical Transformers 43.80 47.49 31.87 56.20 43.65 32.42 39.54 34.31 42.09 32.48 0.29 -22.83 -2.74

S.08090102 Telephone Sets, Audio/Video Equipments & Parts 3.01 23.12 3.36 6.96 4.83 5.55 6.03 6.52 7.59 6.07 0.05 -20.03 0.94

S.08090103 Printed Circuits 55.92 29.98 12.10 23.31 28.68 26.49 16.93 10.91 6.86 5.13 0.05 -25.22 -20.23

S.08090104 Switches, Lamp Holders Boards & Panels 14.43 17.02 13.32 15.83 17.92 13.57 28.34 39.65 33.08 36.32 0.32 9.79 12.05

S.08090105 Discharge Lamps 60.89 44.82 29.96 40.28 55.65 45.53 34.16 45.79 41.67 45.30 0.40 8.71 -1.06

S.08090106 Electronic Circuits, Transistors, Valves, Cathode Tubes etc. 1.34 1.21 0.90 0.64 0.49 0.99 1.11 0.71 0.46 0.93 0.01 102.17 -5.36

S.08090107 Insulated Wires and Cables 47.75 54.57 35.62 48.97 53.07 56.87 53.82 55.04 45.10 53.36 0.48 18.31 1.33

S.08090108 Boilers, Piston Engines, Pumps & Vacuum Pumps 1.44 1.27 0.39 0.67 1.42 1.32 3.36 2.04 2.15 1.44 0.01 -33.02 10.14

S.08090109 Air-Condition Machines 3.30 0.62 0.01 ... ... 0.04 0.15 0.50 0.45 0.69 0.01 53.33 16.63

S.08090110 Refrigerators & Freezers 4.73 17.10 25.82 20.58 26.49 31.30 29.63 14.68 5.22 1.74 0.02 -66.67 -11.45

S.08090111 Tea Bagging, Packing, Cleaning, Weighing Machines 4.00 7.43 6.99 10.87 9.63 9.13 15.28 15.58 12.80 17.54 0.16 37.03 13.39

S.08090112 Automatic Data Processing Machines 24.75 7.89 3.77 0.54 0.23 0.24 1.14 1.56 1.73 3.54 0.03 104.62 -18.36

S.08090199 Other Electrical & Electronic Products nes 105.77 69.70 23.40 34.15 70.55 73.40 82.84 116.09 94.67 113.21 1.01 19.58 8.16

Sub- Sub Total- Electronic, Electrical & Machinery- Products 371.13 322.22 187.51 259.00 312.61 296.85 312.33 343.38 293.87 317.75 2.83 8.13 0.90

S.080902 Transport Equipment & parts

S.08090201 Motor Vehicles & Parts 28.99 19.60 5.75 8.73 13.29 13.69 16.05 13.43 10.61 11.11 0.10 4.71 -4.14

S.08090202 Bicycles Not Motorized 21.28 36.58 47.66 54.15 43.16 40.36 24.39 32.55 34.23 36.13 0.32 5.55 -0.04

S.08090299 Other Transport Equipments nes 14.12 20.96 8.69 11.13 10.14 45.04 9.69 10.71 10.20 10.94 0.10 7.25 -3.16

Sub- Sub Total- Transport Equipment & parts 64.39 77.14 62.10 74.01 66.59 99.09 50.13 56.69 55.04 58.18 0.52 5.70 -2.72

S.080903 Other Engineering Products

S.08090301 Boat Building 37.34 21.54 57.81 58.53 149.25 56.59 82.00 86.26 181.61 64.76 0.58 -64.34 13.29

S.08090302 Aircrafts & Parts 49.01 8.85 6.94 11.33 9.16 9.08 14.17 8.38 6.99 8.42 0.08 20.46 -9.64

S.08090303 Toys Games & Sport Requisites 39.11 42.08 38.02 45.16 49.74 55.50 62.50 68.40 65.72 65.58 0.59 -0.21 7.15

S.08090304 Metal Furniture & Seats 3.79 5.41 4.82 5.49 3.38 3.00 3.42 5.19 5.05 6.12 0.05 21.19 1.61

Sub- Sub Total- Other Engineering Products 129.25 77.88 107.59 120.51 211.53 124.17 162.09 168.23 259.37 144.88 1.29 -44.14 7.29

Sub Total-Engineering Products 564.77 477.24 357.20 453.52 590.73 520.11 524.55 568.30 608.28 520.81 4.65 -14.38 2.18

S.0810 Footwear 24.11 21.63 17.22 19.73 16.71 12.24 29.27 86.57 86.31 117.63 1.05 36.29 19.94

S.0811 Other Manufactures

S.081101 Mattresses & Mattress Supporters 9.83 11.45 5.17 6.01 6.78 6.07 5.41 5.16 5.16 9.65 0.09 87.02 -3.75

S.081102 Brooms & Brusher of Other Fibers 17.20 19.71 16.83 17.46 19.70 17.91 19.58 24.37 23.50 26.70 0.24 13.62 4.42

S.081103 Buttons, Studs, Fasteners & Similar Products 1.37 1.76 1.52 1.35 1.93 1.59 1.68 1.40 1.10 1.62 0.01 47.27 -1.02

S.081104 Synthetic Rubber 0.07 1.44 0.21 0.19 0.05 0.01 0.05 0.05 - - - - -59.62

S.081199 Other Manufactures nes 55.99 56.45 44.95 54.51 69.93 62.32 62.51 74.80 72.81 25.25 0.23 -65.32 4.07

Sub Total- Other Manufactures 84.46 90.81 68.68 79.52 98.39 87.90 89.23 105.78 102.57 63.22 0.56 -38.36 3.34

Total- Manufacturing Products 1878.53 1744.67 1297.64 1758.05 2422.19 2275.39 2239.43 2439.55 2305.84 2382.43 21.25 3.32 4.90

S.09 Petroleum Products 168.00 255.00 130.00 263.00 553.00 463.00 428.00 369.59 373.90 286.90 2.56 -23.27 56.30

S.10 Products Unclassified 67.45 31.93 60.94 435.70 231.58 58.08 72.73 54.85 88.69 1.26 0.01 -98.58 -23.9719

Sec. No. Product 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016%

Contribution

2015-2016

% Growth

2007-2016

Av. Growth

Value in Millions of US Dollars

Total Merchindise Exports 7639.99 8111.05 7084.00 8625.72 10558.80 9773.59 10394.34 11130.09 10546.50 10309.70 91.97 -2.25 4.12

S.11 Communication, Computer & Information Technology 244.00 311.00 325.00 348.00 440.00 673.00 719.00 748.00 847.00 900.00 8.03 6.26 15.47

Grand Total 7883.99 8422.05 7409.00 8973.72 10998.80 10446.59 11113.34 11878.09 11393.50 11209.70 100.00 -1.61 4.99

- Indicates Export value, % Growth is insignificant.

Sources: Sri Lanka Customs / Central bank of Sri Lanka / Sri Lanka Export Development Board

20

EASL Annual Report 2016/2017 Page 33

EXPORTERS’ ASSOCIATION OF SRI LANKA

FINANCE STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2017