Bloomberg News

Sri Lanka’s Export Growth Accelerates for a Second Month

December 09, 2011

(Updates with garment exports in fourth paragraph.)

Dec. 9 (Bloomberg) -- Sri Lanka’s export growth accelerated in September for the second straight month as demand for garments, textiles and rubber products increased.

Overseas sales increased 20.4 percent to $854 million from a year earlier, after advancing 19.1 percent in August, the Central Bank of Sri Lanka said in a statement today.

The central bank on Nov. 16 left interest rates unchanged for a tenth straight month to boost domestic demand as Europe’s debt crisis and elevated U.S. unemployment hurt Asian exports. A U.S. trade concession law aiming to promote growth in developing nations, which came into effect Nov. 5, may help cushion the impact of a slowing global economy on overseas sales.

Earnings from textiles and garment exports rose 13.7 percent in September from a year earlier, according to the central bank statement. Overseas sales of rubber products increased 37.3 percent.

President Barack Obama on Oct. 21 signed into law the reauthorization of the Generalized System of Preferences, a program that provides preferential duty-free entry for up to 4,800 products from 129 countries and territories including Sri Lanka, the U.S. embassy in Colombo said last month. The law remains effective through July 31, 2013.

Exports account for about a fifth of Sri Lanka’s $50 billion economy.

--Editors: Sunil Jagtiani, Cherian Thomas

%LKR

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net


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