Bittersweet Indices on Unit Values ​​of Sri Lanka’s Exports and Imports – The Island

Sri Lanka’s export unit value index rose significantly in July 2022, but its import unit value index eclipsed the gains made by the former, according to the Central Bank of Sri Lanka’s weekly economic indicators ( CBSL). The export unit value index increased by 14.6. percent (year-on-year) in July 2022 due to higher prices recorded in all major categories, namely industrial, mineral and agricultural exports, the CBSL said.

However, the unit value index of imports in July 2022 increased by 18.1% (year-on-year), due to the increase in prices recorded for intermediate and investment goods. As a result, the terms of trade deteriorated by 3.0% (year-on-year), reaching 91.2 index points in July 2022, CBSL said. Meanwhile, the average Colombo auction tea price has risen significantly to US$4.08 per kg. in July 2022 against 2.96 US dollars per kg in July 2021.

Further according to the report:

Net credit to government and outstanding credit to public enterprises in the banking system increased by Rs. 129.5 billion and Rs. 24.9 billion respectively, in July 2022. However, the outstanding credit to the private sector decreased by Rs. 41.0 billion in July 2022.

The Industrial Production Index (IPI) in July 2022 fell 22.0% to 85.6 from July 2021. (98.5%) and “Other non-metallic mineral products” (37.7 percent) mainly caused this overall decrease.

In the year to September 9, 2022, the Sri Lankan rupee depreciated by 44.6% against the US dollar. Given fluctuations in exchange rates between currencies, the Sri Lankan rupee depreciated against the Indian rupee by 40.7%, the euro by 37.7%, the pound sterling by 35.4% and the Japanese yen by 30.9% during this period. Weekly AWPR for the week ending September 9, 2022 increased by 51 basis points to 26.27% from the previous week.

As of September 9, 2022, the All Share Price Index (ASPI) rose 4.16% to 9,704.21 points and the S&P SL 20 Index rose 4.04% to 3,131.29 points, per compared to last week’s index values. The stock of central government debt increased to Rs. 21,696.6 billion by the end of March 2022 from Rs. 17,589.4 billion at the end of 2021.

During the period under review (from 03.09.2022 to 09.09.2022), crude oil prices were largely on the downside. At the beginning of the period, prices rose due to the decision by OPEC+ to reduce production. However, prices later eased on prospects of further monetary policy tightening globally and recession fears and COVID-19 lockdowns in China causing fuel demand to weaken. Overall, during the period under review, Brent and WTI prices declined by US$5.46 per barrel and US$4.92 per barrel, respectively.

Gross official reserves were provisionally estimated at US$1,716 million at end-August 2022. Broad money (M2b) increased by 16.0%, on an annual basis, in July 2022.

Export revenue increased 12.9% (year-on-year) to US$7,678 million in the seven months ending July 2022 due to increased revenue primarily from textile and textile exports. clothing (20.0%), petroleum products (51.9%), precious stones, diamonds and jewelry (50.2%), machinery and mechanical appliances (12.1%) and food, beverages and tobacco (9. 3%). Import expenditure slightly decreased by 3.5% (year-on-year) to US$11,315 million in the seven months ending July 2022, mainly due to lower imports of machinery and equipment. equipment (-17.0%), basic metals (-44.0%), telecommunications devices (-80.6%) and medicines and pharmaceutical products (-30.6%). As a result, the trade account deficit narrowed to US$3,637 million in the seven months ending July 2022 from US$4,922 million in the corresponding period of 2021.

Lynn A. Saleh