WEB DESK
Sri Lanka’s merchandise exports in February fell by eight percent with a drop in earnings in the apparel and textile industries. The island’s export promotion office said the fall comes as the rupee strengthened steeply amid weak domestic credit and voluntary, Rupee deposits by commercial banks.
The export earnings for the month stood at just over a billion dollars.
Major contributors to the exports were Apparel and textiles followed by Tea and Rubber. The USA, India, and the UK were the top export markets.
The falling demand in Western markets was attributed to monetary tightening, requiring lower stockholdings as lower volumes make it easier to make deliveries in time.
Exporters of finished goods said due to Rupee appreciating, they are under pressure from competition and are forced to trim margins.
The Lankan rupee has appreciated 12-14 percent over the last month.