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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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AHK Sri Lanka champions first-ever Sri Lankan delegation at Drupa 2024

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The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.

AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.

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Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness

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Kotaro Katsuki, Ambassador for the Embassy of Japan

In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.

The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.

“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.

Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,

Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.

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HNB General Insurance recognized as Best General Bancassurance Provider in Sri Lanka 2024

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HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.

The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.

“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”

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