The Rupee Depreciation Has Not Played A Positive Role In Sri Lanka'S Clothing Exports.

2012/3/23 10:11:00 25

Sri Lanka's company has appealed for years.

Currency devaluation

To help them compete with low-cost Asian producers.

In the past month, the central bank's reform has reduced the rupee by 14%.

clothing

Exports of tea and tea increased by 22% over the past year. Officials set the same target for growth this year, which may push exports to more than $13 billion.

The head of Sri Lanka's export development agency, Jia Ka La lanac, said the goal is now challenging.

The main challenge will be the impact of the rupee depreciation.

Exporters have demanded depreciation of Rupee for years, which has a direct impact on their export earnings.

But our main export products, such as clothing, are based on imports.

Because of the depreciation of the rupee, the cost of imports will rise and profits will decline.

with

clothing

The leading industrial sector, which accounts for 80% of total export revenues, is mainly dependent on imports of raw materials and machinery.

On Monday, after the central bank decided not to intervene in February 9th, the Sri Lankan rupee recorded a record of 131.60 rupees against a dollar.

La Nayak said many key issues in North Africa and the Gulf region.

market

There will be turbulence.

Sri expects export earnings to grow by 50% to $15 billion in 2015 and $20 billion by 2020.

When the economic growth of many developed countries decelerated and the eurozone tried to get rid of the debt crisis, Sri Lanka was looking for more export destinations in Asia to increase its export earnings, La Nayak said.

Sri Lanka's share of exports to Europe and the United States has dropped from 61% in 2005 to 54.1% last year, while exports to Asia increased by 3%.