Business
Sri Lanka in a paradoxical situation over its trade deficit despite higher exports
by Sanath Nanayakkare
Despite Sri Lanka’s exports had increased more than imports (y-o-y), reducing the trade deficit in April 2024, the cumulative trade deficit for Jan-Apr 2024 has widened, according to the External Sector Performance report of the Central Bank of Sri Lanka.
The deficit in the merchandise trade account narrowed to US dollars 558 million in April 2024 from US dollars 583 million recorded in April 2023. However, it widened compared to March 2024 (US dollars 359 million). Meanwhile, the cumulative deficit in the trade account during January to April 2024 widened to US dollars 1,777 million from US dollars 1,479 million recorded over the same period in 2023, according to the Central Bank.
“Earnings from merchandise exports increased by 3.4 per cent to US dollars 878 million in April 2024 compared to US dollars 849 million in April 2023. There was an increase in earnings across all major categories of exports, where industrial exports increased the most, despite a decline in garments exports. The increase in industrial goods exports in April 2024 was mainly contributed by petroleum products due to the increase in volumes of bunkering and aviation fuel exports.
Earnings from exports of agricultural goods improved in April 2024 mainly driven by coconut-related products and tea (led by higher volumes), despite a decline in spice exports. Earnings from mineral exports also increased in April 2024. However, earnings from exports declined in April 2024 compared to March 2024, resulted by broad-based declines due to festive seasonal effects”, the Central Bank report stated.
“This itself reflects the paradoxical nature of the domestic economy. One would expect more exports and fewer imports on a continued basis to improve the trade deficit of a country. But it doesn’t seem to be happening in Sri Lanka. The reason for this is; Sri Lanka’s export unit value is far below the import unit value, and this needs to be addressed by shifting to export products that create more value for the country in US dollar terms rather than gloating about our export volumes that still bring us insufficient foreign currency,” a leading gem exporter based in Ratnapura told The Island Financial Review.
“Yes, the expenditure of investment goods and fuel imports may have contributed to this increase in the trade deficit. But the issue is; how long Sri Lanka would take to be an export economy with foreign currency earnings that surpasses its import bill, or at least equate the import bill for self-sustenance. So, what we need to specifically target is; breakeven foreign exchange earnings to compensate for our import bill,” he said.
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.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
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.
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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