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Export earnings exceed USD 1 billion for second consecutive month

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Major contributory factors for the Y-o-Y change in trade deficit during January- June 2023 (US $ mn.)

External Sector Performance – June 2023

• Export earnings remained above US dollars 1.0 billion for the second consecutive month in June 2023, while import expenditure declined compared to the previous month.

• Workers’ remittances and earnings from tourism continued to improve notably in June 2023, compared to the corresponding period of the previous year.

• Foreign investment in the government securities market recorded a notable net inflow during June 2023.

• The receipt of around US dollars 250 million from the World Bank for the budgetary support, elevated the gross official reserve level (GOR) to around US dollars 3.7 billion by end June, compared to US dollars 3.5 billion as at end May 2023.

• The Sri Lanka rupee recorded some degree of volatility against the US dollar in June 2023, reflecting the determination of the exchange rate by market forces.

Merchandise Trade Balance

The balance in the merchandise trade account in June 2023 recorded a deficit of US dollars 364 million, compared to the surplus of US dollars 22 million recorded in June 2022. Meanwhile, the cumulative deficit in the trade account during January-June 2023 narrowed to US dollars 2,289 million from US dollars 3,506 million recorded over the same period in 2022. The major contributory factors for this change in the trade balance are shown in Figure 1.

Performance of Merchandise Exports

Overall Exports: Earnings from merchandise exports declined by 19.5 per cent in June 2023, over the corresponding month in 2022, to US dollars 1,005 million. This decline mainly reflected the high base in June 2022, and all major subcategories of merchandise exports recorded a decline in June 2023 compared to year earlier. Cumulative export earnings during January to June 2023 also declined by 10 per cent over the same period in the last year, amounting to US dollars 5,871 million.

Industrial Exports: Earnings from the exports of industrial goods declined in June 2023, compared to June 2022, due to a broad-based decline in earnings from most of the industrial products led mainly by garments. Exports of garments to most of the major markets (the USA, the EU and the UK) continued to record declines, resulting from subdued demand conditions in major markets. Further, a sizable decline was recorded in the exports of rubber products (mainly, tires and gloves); petroleum products (due to lower average export prices); food, beverages and tobacco (mainly, vegetable, fruit and nuts preparations; and milling industry products); printing industry products; and animal fodder

Agricultural Exports: Earnings from the exports of agricultural goods declined in June 2023, compared to a year ago, driven by lower export volumes of sea food (primarily, fresh and frozen fish), and coconut related products (primarily, desiccated coconut, coconut oil and fibres). Earnings from tea exports declined led by lower volumes despite higher export prices. Further, the export subcategories of spices (mainly, pepper and cinnamon), vegetables, natural rubber, and unmanufactured tobacco recorded a decline in June 2023, compared to the previous year. However, earnings from minor agricultural product exports (mainly, arecanuts) improved to some extent.

Monthly trade balance

Mineral Exports: Earnings from mineral exports declined in June 2023, compared to June 2022, mainly due to the decline in exports of earths and stone; and ores, slag, and ash.

Performance of Merchandise Imports

Overall Imports: Expenditure on merchandise imports increased by 11.6 per cent to US dollars 1,369 million in June 2023, compared to US dollars 1,226 million in June 2022. The increase in import expenditure was observed across all main categories of imports, which was supported by the significantly low base in June 2022. Meanwhile, cumulative import expenditure during January to June 2023 declined by 18.6 per cent over the corresponding period in 2022. However, the relaxation of import restrictions, commenced during June and July 2023, could gradually generate higher import expenditure in the period ahead.

(CBSL)



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Cross-border supply chains seen as key to new business opportunities

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Dignitaries at the launching of the new dhal processing factory.

By Ifham Nizam

Australian High Commissioner to Sri Lanka Matthew Duckworth described Omega Traders’ latest investment in a modern dhal-processing facility as a strong example of how cross-border supply chains can translate into productive investment, local value addition and new business opportunities in Sri Lanka.

The investment, which adds a 150-metric-tonne-per-eight-hour-day processing capacity to Omega Traders’ operations, marks a significant expansion of the company’s manufacturing footprint as it celebrates 45 years in Sri Lanka’s food commodity industry.

Speaking at the inauguration of the new Lentil and Orid Dhal Processing Factory in Wattala, last Friday, H.C. Duckworth said the facility represented more than an increase in production capacity, pointing to the wider economic value created when Australian agricultural production is connected with Sri Lankan processing and distribution.

‘This facility is not operating on its own. It is part of a long supply chain and a trade partnership between Sri Lanka and Australia, Duckworth said.

His comments placed the Omega Traders’ investment within a broader commercial context: Australia brings agricultural production and established export capabilities, while Sri Lanka provides processing capacity, labour, market access and opportunities for further value addition.

The investment comes as Sri Lanka continues to look towards greater domestic processing and value-added manufacturing rather than relying solely on the import and distribution of finished commodities.

Dr. (Mrs.) Siddhika G. Senaratne, Director General/CEO of the Sri Lanka Standards Institution (SLSI), who attended the inauguration as Guest of Honour, highlighted the importance of quality assurance in food processing and the role of standards in maintaining confidence across the supply chain.

The facility is equipped with new-generation cleaning, processing, sorting and quality-control machinery, including advanced colour-sorting technology, automated systems and an in-house quality-control laboratory.

The additional capacity will support Omega Traders’ three principal Mysoor Dhal brands — Rainbow Jumbo Dhal, Komas Dhal and Rozanna Dhal — which serve different segments of the Sri Lankan market.

But the investment also has a distinctly local agricultural dimension.

Through its Orid Dhal operation, Omega Traders plans to source locally grown black matpe from Sri Lankan farmers and process it at the new facility.

That creates a domestic value chain linking farmers to industrial processing and consumers, while potentially increasing demand for locally produced agricultural commodities.

Duckworth said this type of business partnership could generate benefits for both countries.

‘Australia produces some of the world’s best agricultural products and we are very efficient and very capable at trading them. But that alone is not going to bring success to Australia. Just as building a factory like this is not going to bring success to Sri Lanka, he said.

‘It’s when we bring these entities together that our products produced in Australia can be processed in excellence here in Sri Lanka that enables this to be a success, the H.C. explained.

The investment therefore combines two complementary supply streams: imported agricultural commodities, including Australian-origin products, and locally produced black matpe for the Orid Dhal operation.

For Sri Lanka, the business significance extends beyond Omega Traders itself. Increased processing capacity creates demand for logistics, packaging, distribution, services and agricultural inputs, while supporting employment within the food-processing ecosystem.

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Ideal Motors makes history with multiple workplace excellence accolades

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Representatives from Ideal Motors (Pvt) Ltd receive top organizational culture and workplace accolades at the Great Place to Work® 2026 awards ceremony.

HR-led transformation places people, culture and business performance at the heart of the organisation

Ideal Motors (Pvt) Ltd,has achieved a significant milestone by securing multiple prestigious workplace and organisational culture accolades in 2026, reinforcing its position as an employer of choice in Sri Lanka’s automotive sector.

Among its latest achievements, Ideal Motors has been recognised as one of the 20 Great Workplaces for Young Talent in Sri Lanka 2026, ranked No. 1 and awarded the Gold Medal in the Small and Medium category of Best Workplaces™ in Sri Lanka 2026, and ranked No. 18 among Best Workplaces™ in Asia in the Medium Scale category—the highest-ranked Sri Lankan organisation in the category. The company also received Industry Excellence for Workplace Culture – Trading Industry.

The Young Talent recognition was presented at the Great Place To Work® CXO Forum 2026 held on 10 September 2026 at Cinnamon Life, Colombo. The recognition followed an evaluation of more than 100 certified organisations and highlights workplaces that create meaningful opportunities for employees under 35 to develop, contribute and grow.

At the Best Workplaces™ in Sri Lanka Awards Gala 2026, held on 11 September 2026 at Cinnamon Life, Colombo, Ideal Motors achieved another historic milestone by entering the Best Workplaces Sri Lanka list for the first time and securing the No. 1 Gold Medal in the Small and Medium category. The company also achieved No. 18 in Best Workplaces™ in Asia, reflecting the strength of its workplace culture beyond Sri Lanka.

These achievements represent more than a collection of awards. They reflect the transformation taking place within Ideal Motors, where people, culture and business performance are increasingly viewed as interconnected drivers of sustainable growth.

Over the past few years, the organisation’s HR function has evolved from a predominantly administrative role into a strategic business partner, with greater emphasis on employee experience, capability development, engagement, performance, communication, wellbeing, diversity and inclusion, and data-driven HR practices.

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AAC takes seat belt safety message to Colombo motorists

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AAC staff distribute seat belt safety material to motorists on Galle Face Centre Road, Colombo.

The Automobile Association of Ceylon (AAC) conducted a seat belt safety awareness programme in front of its headquarters and along Galle Face Centre Road, encouraging motorists and passengers to make seat belt use a habit on every journey.

AAC staff, working alongside officers of the Sri Lanka Police Traffic Division, distributed specially designed hanging tags and stickers to drivers. The material carries a clear reminder that seat belts protect drivers as well as passengers in both the front and rear seats.

The public awareness drive was held ahead of the requirement taking effect on 20 September 2026, under which seat belt use becomes mandatory for every occupant of a vehicle travelling on an expressway.

AAC emphasized that the regulation should be understood as a life-saving measure rather than only a legal obligation. Wearing a seat belt can help prevent occupants from being thrown inside or from a vehicle during a collision and can lessen the severity of injuries.

The Association said road safety legislation must be supported by sustained public education, visible enforcement and responsible behaviour by all road users. The participation of the Traffic Police helped the campaign reach motorists directly in a busy part of central Colombo.

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