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External Sector Performance – December 2022

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*  Earnings from exports remained resilient during 2022 recording the highest ever exports,

while expenditure on imports declined significantly in 2022, compared to 2021.

*  Merchandise trade deficit recorded the lowest in 2022, since 2010.

*  Foreign investments in the government securities market and Colombo Stock Exchange (CSE) recorded a notable net inflow during 2022 compared to net outflow in 2021.

*  The recovery in earnings from tourism persisted in 2022 and marked a noticeable growth, although workers’ remittances moderated in 2022, compared to 2021.

Performance of Merchandise Trade in 2022

Earnings from exports in 2022 surpassed US dollars 13 billion per year for the first time, recording an increase of 4.9 per cent from the previous highest recorded in 2021. This improvement was a result of increased earnings from industrial exports, including garments, gems, diamonds and jewellery, machinery and mechanical appliances and petroleum products. Meanwhile, total import expenditure in 2022 amounted to US dollars 18,291 million, recording a decline of 11.4 per cent, year-on-year, resulted from measures to restrict non-urgent imports and liquidity constraints prevailed in the market for the most part of 2022. As a result, the deficit in the trade account in 2022 narrowed to the lowest level since 2010 to US dollars 5,185 million, from US dollars 8,139 million recorded in 2021.

The major contributory factors for the decline in the cumulative trade deficit in 2022 are shown in Merchandise Trade Balance The deficit in the merchandise trade account narrowed to US dollars 358 million in December 2022, from US dollars 1,085 million recorded in December 2021, helped by a larger decline in imports, compared to the decline in exports.

Performance of Merchandise Exports1 Overall exports:

Earnings from merchandise exports declined by 7.7 per cent in December 2022, over December 2021, to US dollars 1,068 million. The decline in earnings from industrial exports mainly contributed to the decline in export earnings in December 2022.

Industrial exports: Earnings from the export of industrial goods declined in December 2022, compared to December 2021, mainly due to the lower exports of garments resulted from reduced spending capacity associated with high inflation and recessionary concerns in most of the major markets (the USA, the EU and the UK). Similarly, earnings from rubber products continued to decline due to the lower exports of tires and household rubber gloves. Further, a sizable decline was recorded in the exports of food, beverages, and tobacco (mainly, manufactured tobacco), although earnings from gems, diamonds, and jewellery; and machinery and mechanical appliances (mainly, electronic equipment) increased.

Agricultural exports: Earnings from tea exports marginally declined with the higher average export prices of tea was offset by the decline in volume exported, resulted from the lag effect of the unavailability of adequate fertiliser. Earnings from the export of other agricultural goods declined in December 2022, compared to a year ago, resulted from lower export volumes of pepper, categorised under spices.

Mineral exports: Earnings from mineral exports increased in December 2022, compared to December 2021, mainly due to the increase in export of titanium ores.



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Dulux colours Architect 2023 exhibition with vibrant and engaging presence

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Dulux -Sri Lanka’s, a leading manufacturer of paints and coatings – is celebrating the successful close of its participation at Architect 2023, also taking home an award for the ‘Best Trade Stall with Innovative Use of Colour’.

Organised by the Sri Lanka Institute of Architects -and now in its 41st year- this year’s edition of the Architect 2023 annual trade fair took place from February 24-26 at the BMICH, and witnessed greater participation from leading companies and entrepreneurs actively involved in the various construction and architecture sectors; both locally and internationally, a company news release said.

“Dulux established a strong presence at the event with a spectacular exhibit themed Colour Futures ’23, featuring its 2023 Colour of the Year: Wild Wonder. Visitors to the stand were able to explore the four colour palettes, Lush, Buzz, Raw and Flow, inspired by the nature-influenced theme, with Dulux colour experts on hand providing unique trade insight, and also advising visitors on how best the shades can be implemented into their own work and living spaces,” it said.

“The popular mascot, “Dulux Dog” was also present to playfully engage with exhibition attendees and brighten up the vibrant Dulux stall even further. The Dulux exhibit proved widely popular among attendees to Architect 2023, due to its powerful display of colour in both interior & Exterior spaces. “

“Architect 2023 was a great opportunity for Dulux to learn from fellow trade professionals, and also to introduce visitors to the latest trends and insights from the global paints and coatings landscape,” said Upendra Gunawardhana, Head of Marketing at AkzoNobel Paints Sri Lanka. “We’ve maintained a strong long-standing relationship with the SLIA, and have every intention of being back again next year as well.”

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ACCA reaffirms ComBank as Best among Sri Lankan banks for Sustainable Reporting

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Commercial Bank’s Chief Operating Officer Mr S. Prabagar (third from left) receives the ACCA award. The Bank’s Deputy General Manager – Retail Banking & Marketing Mr Hasrath Munasinghe (second from right) and Senior Manager – Sustainability, Women’s Banking & CSR Mrs Kamalini Ellawala (extreme right) are also in the picture

The Commercial Bank of Ceylon was declared the best among all Sri Lankan banks in sustainability reporting at the Sri Lanka Sustainability Reporting Awards for 2022 presented by the Association of Chartered Certified Accountants (ACCA) Sri Lanka.

As the winner in the ‘Banking’ category Commercial Bank was recognised for being one of the most transparent, accountable, and responsible entities in the country. The award was presented for the Bank’s 2021 Annual Report titled ‘Beyond a shape, beyond a colour’ which among other aspects, explores the Bank’s evolving operating context in which social and environmental concerns are brought to the centre of its corporate agenda.

Prepared in line with the International <IR> framework, this Annual Report also presents the Bank’s social and environmental impacts as per the Global Reporting Initiative (GRI) standards: Core option. Additionally, it reports on the Bank’s contribution towards the UNDP Sustainable Development Goals.

The Report also features a dedicated section on ‘Business model for sustainable value creation’ and discloses information on loans screened through the Bank’s Social and Environmental Management System (SEMS), paper reduction and recycling initiatives, increased usage of renewable energy, and switching to energy-efficient appliances under the section on ‘Natural Capital.’ Indicators of value derived in this category include reduced energy consumption in gigajoules, number of facilities subjected to SEMS screening, number of new solar panel installation locations, number of internet banking and mobile banking users, and solar power generated as a percentage of energy consumption.

Commercial Bank’s high standards in comprehensive reporting area result of the Bank’s commitment to being a responsible financial entity and shaping its work ethics around sustainable business practices, the Bank said. Last year too, Commercial Bank topped the ACCA awards in the Banking category, in addition to winning the overall award for the Best Sustainability Report of 2020.

Notably, Commercial Bank’s 2021 Annual Report also won four awards including a Gold for ‘Interior Design,’ and a Bronze for ‘Interactive Annual Report’ at the 2022 edition of the MerComm ARC Awards which is the world’s largest annual report competition.

The Bank’s sustainability initiatives include lending to support sustainable and green operations, migrating customers to paperless banking, improving efficiency in the use of energy, water and other resources in its own operations and supporting community initiatives that help conserve habitats and the environment. Its support to a mangrove restoration project in Koggala and marine turtle conservation initiative in Panama are examples of its commitment to environmental conservation.

The Bank pioneered a mandatory social and environmental screening process for its project lending activities and was the first bank in Sri Lanka to venture into Green Financing. It also revolutionised digital banking by introducing features in its ‘Flash’ mobile application to measure and offset customer impact on the environment.

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Ex-Pack Corrugated Cartons PLC prioritizes psychological wellbeing in view of Women’s Day

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Seen here are a few women at Ex-Pack cutting the cake

In view of the marking the International Women’s Day, Ex-Pack Corrugated Cartons PLC held an insightful event at their state-of-the-art factory premises in Kelaniya, highlighting the importance of psychological wellbeing and how Ex-Pack is taking up measures in ensuring an enabling environment for its 300 strong workforce, based on its wider DEI policies.

Various global studies have shown that women are impacted at much higher rates than men when it comes to mental illnesses. The session celebrated their achievements and life stories, and shared some eye-opening tips, facts, know how’s, to-dos, and various other influential factors including the dire need to change our perspectives on women’s roles, health and wellness. This also touched upon the emotional and social aspects of wellbeing too.

This year’s theme is centered on #EmbraceEquity, and Ex-Pack is no stranger when it comes to pursuing gender equality in an industry that has been traditionally dominated by male. As one of leading corrugated cartons manufacturer in Sri Lanka delivering end-to-end packaging solutions to both local and international clientele, and a subsidiary of Aberdeen Holdings (Pvt) Ltd, Ex-Pack actively encourages more female participation.

‘With this year’s theme being #EmbraceEquity, we take great pride in being an ambassador and role model in our industry. We go beyond just equal opportunities to pro-actively collaborate with everyone, to ensure that our talented women have every possible resource at their disposal and are given all the required support to succeed both professionally and personally,’ said M. Zulficar Ghouse, Managing Director- Ex-Pack Corrugated Cartons PLC

Ex-Pack has long been engaged with providing equal career opportunities, and both men and women

are respected, rewarded and compensated equally. The company also has an open-door policy for all employees. Women empowerment stems directly from the top leadership, recognizing that women and their strengths are crucial to both the company and the overall economy.

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