Export unit value index increased by 4.9%, its import counterpart surged by 15.4%

Terms of trade deteriorated by 9.0 per cent

The export unit value index increased by 4.9 per cent, (year-on-year), in August 2022 due to higher prices registered in agricultural and industrial categories of exports. Meanwhile, the import unit value index in August 2022 increased by 15.4 per cent, (year-on-year), due to higher prices recorded in intermediate and investment goods. Accordingly, the terms of trade deteriorated by 9.0 per cent, (year-on-year), to 82.5 index points in August 2022,” Weekly Economic Indicators of the Central Bank stated.

It further stated: The average price of tea (in the Colombo auction) increased to US dollars 4.25 per kg in August 2022 from US dollars 2.95 per kg in August 2021.The import price of crude oil increased substantially by 53.2 per cent in August 2022 year-on-year.

OPEC+ agreed to cut production targets by 2 mn barrels per day which were the producers’ largest reduction since 2020. Overall, during the period under review, Brent and WTI prices increased by US dollars 6.86 per barrel and US dollars 6.73 per barrel, respectively. Weekly AWPR for the week ending 07th October 2022 increased by 75 bps to 26.70 per cent compared to the previous week.

The reserve money decreased compared to the previous week mainly due to decrease in the currency in circulation. The total outstanding market liquidity was a deficit of Rs. 517.427 bn by the end of this week, compared to a deficit of Rs. 568.46 bn by the end of last week.

By 07th October 2022, the All Share Price Index (ASPI) decreased by 8.88 per cent to 9,049.52 points and the S&P SL 20 Index decreased by 12.43 per cent to 2,771.83 points, compared to the index values of last week.

During the year up to 07th October 2022, the Sri Lankan rupee depreciated against the US dollar by 44.8 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against the Indian rupee by 38.9 per cent, the Euro by 36.2 per cent, the pound sterling by 33.3 per cent and the Japanese yen by 30.4 per cent during this period.The gross official reserves were provisionally estimated at US dollars 1,777 mn as at end September 2022.

Earnings from exports increased by 12.6 per cent (year-on-year) to US dollars 8,902 mn during the eight months ending August 2022 as a result of increased earnings mainly from exports of textiles and garments (19.2%), petroleum products (39.0%), gems, diamonds and jewellery (55.7%), machinery and mechanical appliances (14.2%) and animal fodder (40.9%).

Import expenditure decreased by 4.6 per cent (year-on-year) to US dollars 12,801 mn during eight months ending August 2022, mainly due to lower imports of machinery and equipment (-19.8%), telecommunication devices (-82.4%), base metals (-45.9%) and medical and pharmaceuticals (-34.7%). Accordingly, the deficit in the trade account narrowed to US dollars 3,899 mn during the eight months ending August 2022 from US dollars 5,507 mn in the corresponding period of 2021.


, Business, ,

Post a Comment

Previous Post Next Post