Connect with us

Business

Increase in import expenditure outpaces rise in export earnings

Published

on

The CBSL publishes a ‘Monthly Trade Bulletin’ with further information on merchandise trade performance, which can be viewed at the Central Bank of Sri Lanka website under Statistics > Economic Indicators > Monthly Trade Bulletin. https://www.cbsl.gov.lk/en/monthly-trade-bulletin

Extracts of CBSL External Sector Performance – August 2021

Increased financial inflows bolstered Gross Official Reserves (GOR) during the month of August 2021, while merchandise exports exceeded US dollars 1.0 billion for the third consecutive month. However, the increase of import expenditure outpaced the increase of export earnings, resulting in an expansion of the trade deficit, compared to a year earlier. Tourist arrivals gathered some momentum in August 2021, recording a notable increase over the previous month, although the numbers remained low.

A moderation of workers’ remittances was observed in August 2021. Sri Lanka received the allocation of Special Drawing Rights (SDR) from the International Monetary Fund (IMF) as part of the general SDR allocation in 2021. Further, initial disbursements under the bilateral currency swap arrangement between the Central Bank of Sri Lanka and the Bangladesh Bank were received during August 2021. The average spot exchange rate in the interbank market remained broadly stable in August 2021, while pressures on the exchange rate were observed towards the end of the month, prompting the Central Bank to intervene in the foreign exchange market to stabilise the rupee.

Trade Balance and Terms of Trade

Trade Balance: The deficit in the trade account widened on a year-on-year (y-o-y) basis to US dollars 586 million in August 2021, compared to the deficit of US dollars 342 million recorded in August 2020. The cumulative deficit in the trade account from January to August 2021 also widened to US dollars 5,509 million from US dollars 3,812 million in the corresponding period of 2020. The major contributory factors that contributed to the widening of the trade deficit are shown in Figure 1.

Terms of Trade: Terms of trade, i.e., the ratio of the price of exports to the price of imports, deteriorated by 19.2 per cent in August 2021, compared to August 2020, as the increase in import prices surpassed the increase in export prices.

Performance of Merchandise Exports1

Overall exports: Earnings from exports in August 2021 grew by 16.2 per cent over August 2020 to reach US dollars 1,100 million, reaching the highest level of exports recorded in a month of August. Earnings from exports were marginally higher at US dollars 1,104 million in July 2021. Cumulative export earnings increased by 22.6 per cent during January-August 2021, amounting to US dollars 7,903 million, compared to US dollars 6,445 million recorded in the corresponding period in 2020. However, the recent gap of around US dollars 345 million per month, on average, between the merchandise outflow and the financial inflow related to such exports has been a matter of concern.

Industrial exports: Earnings from the export of industrial goods increased by 17.5 per cent in August 2021, compared to August 2020. This increase was due to a broad-based increase in earnings from most of the industrial products led by textiles and garments; petroleum products; rubber products; food, beverages and tobacco; and machinery and mechanical appliances. Export of garments to all major markets increased. Earnings from the export of petroleum products increased with the increase in prices of aviation and bunker fuel and the increase in volumes of bunker fuel exports. Increase in earnings from tyres and gloves led to higher earnings from rubber products.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

BOC secures ‘SLIM Kantar People’s Banking Services Brand of the Year 2025’

Published

on

BOC officials receiving the award at the SLIM Kantar People's Awards 2025

Reinforcing its position as a leader in Sri Lanka’s banking sector, Bank of Ceylon (BOC) has been once again named the ‘SLIM Kantar People’s Banking Services Brand of the Year’ at the SLIM Kantar People’s Awards 2025. This recognition, based on consumer preferences, highlights the bank’s role in Sri Lanka’s financial sector and its strong relationship with customers.

The SLIM Kantar People’s Awards, one of the most anticipated corporate events in Sri Lanka, is an accolade that directly reflects the voice of the people. Organised by the Sri Lanka Institute of Marketing (SLIM) and backed by an independent survey conducted by Kantar, the awards recognise brands and personalities that have established strong connections with Sri Lankan consumers. BOC’s repeated success in securing this award shows its continued trust and significance in the lives of millions.

As a financial institution that has played a key role in the country’s economic stability and growth , BOC continues to focus on digital banking, good governance, financial inclusion, and sustainability. Its efforts to improve financial literacy, promote savings and entrepreneurship, and support the SME sector have strengthened its position as a trusted financial partner.

Commenting on the achievement, the Chief Marketing Officer of Bank of Ceylon Sameera D Liyanage stated, “Winning the ˜People’s Banking Services Brand of the Year at the SLIM Kantar People’s Awards once again is a testament to the unwavering trust our customers place in Bank of Ceylon. This recognition reinforces our commitment to delivering innovative, accessible, and customer-centric banking solutions that empower individuals, businesses, and communities across Sri Lanka. As we continue this journey of excellence, we remain dedicated to shaping the future of banking with trust, resilience, and service at our core”

The bank attributes this latest recognition to the support of its customers and stakeholders. Expressing gratitude, BOC reaffirmed its vow to deliver banking solutions while maintaining a customer-focused approach. As it continues to adapt to technological advancements and market changes, BOC is focused on economic stability and financial well-being for all Sri Lankans.

For over 85 years, Bank of Ceylon has been a cornerstone of Sri Lanka’s financial landscape, connecting individuals and businesses to global opportunities. BOC’s extensive network with over 2,300 touch points spread across the nation, ensures that bank’s customers have convenient access to a wide range of financial services. Moreover BOC was ranked as the only Sri Lankan Bank among the Top 1000 World Banks 2024 and the Banker of the Year 2021,2023 and 2024 by The Banker Magazine UK, The Number 1 Banking Brand in Sri Lanka by Brand Finance Lanka. Internationally, Bank of Ceylon has established a strong presence in key locations such as a Subsidiary in London, UK; branches in Male and Hulhumalé in the Maldives; Chennai, India; and the Seychelles.(BOC)

Continue Reading

Business

Sysco LABS concludes first edition of ‘Mentor Mash’ mentorship program

Published

on

Mentees Menusha Prithiviraj and Senuri Hettiarachchi sharing their experiences, highlighting the benefits of structured mentorship and knowledge sharing.

Sysco LABS recently concluded the first edition of ‘Mentor Mash’, an internal mentorship initiative designed to foster learning and professional development among colleagues. Over the course of six months, 26 mentor-mentee pairs engaged in structured mentorship, focusing on knowledge-sharing, career guidance and professional growth.

Speaking on the initiative, Rehan Anthonis, Senior Director – People Operations said: “At Sysco LABS, we recognize that the foundation of a strong workforce lies in continuous learning and development. The ‘Mentor Mash’ program was designed to provide colleagues with structured opportunities to gain insights, refine their skills and receive guidance from experienced professionals within the company. By fostering an environment where knowledge-sharing is prioritized, we are equipping our teams to drive innovation and excel as technology leaders.”

Sysco LABS remains committed to creating opportunities for internal learning, mentorship, and professional development, ensuring that colleagues are well-equipped to contribute meaningfully to company growth.

Continue Reading

Business

Aitken Spence Institute of Hotel Management strengthens hospitality workforce with latest graduates

Published

on

The graduates with the Aitken Spence Hotels management team

Aitken Spence Institute of Hotel Management, a key initiative of Aitken Spence Hotels’ Learning and Development arm, held its latest graduation ceremony at Heritance Ahungalla, marking another milestone in its mission to develop skilled professionals for the hospitality industry. Established in 2007 as part of the company’s strategic Corporate Social Responsibility (CSR) initiative, the institute operates with the support of the TUI Care Foundation, ensuring students receive world-class training and career opportunities.

With Hotel Schools in Ahungalla and Dambulla, the institute offers training in Food & Beverage, Housekeeping, and Professional Cookery through a five-month program that integrates classroom learning with practical industry experience. Since its inception, over 800 students have graduated, many securing employment within Aitken Spence Hotels or furthering their studies.

The 2025 graduating class comprised 90 students, with those from Ahungalla specialising in Food & Beverage and Housekeeping, while Kandalama graduates focused on Food & Beverage and Professional Cookery. The event was attended by graduates, their families, and senior representatives from Aitken Spence Hotels, including Susith Jayawickrama, Joint Managing Director of Aitken Spence Hotel Managements (Pvt) Ltd, Suresh Muttiah, Group Chief Human Resources Officer, and Maheesha Ratnayaka, COO of the Sri Lanka Hotel Sector.

Speaking at the event, Susith Jayawickrama emphasised the programme’s role in shaping the industry’s future workforce. “By equipping young professionals with the necessary skills and real-world exposure, we are not only enhancing their career prospects but also strengthening Sri Lanka’s hospitality sector,” he stated.

A notable highlight of the ceremony was the presence of Ms. Dagmar Wöhrl, Member of the Board of Trustees at the TUI Care Foundation, an organisation that has played a pivotal role in supporting the initiative. With assistance from the TUI Academy in collaboration with the Sustainable Hospitality Alliance, students receive comprehensive support, including accommodation, meals, uniforms, and a stipend during their training. The TUI Care Foundation is an independent charitable organization founded by TUI, one of the world’s leading tourism businesses and is dedicated to harnessing the positive impact of tourism to protect the natural environment and empower communities in travel destinations

More than 75% of graduates are expected to transition into roles within Aitken Spence Hotels, reinforcing the institute’s commitment to bridging the skills gap in the hospitality industry. This year’s ceremony once again highlighted the institute’s dedication to providing structured career pathways for aspiring hospitality professionals in Sri Lanka.

Continue Reading

Trending