Sri Lanka’s Terms Of Trade Improve Despite The Currency Crisis 
Posted 28,December

By Chaveendra Dunuwille

In Local News

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Despite the financial predicament faced by Sri Lanka due to the shortage of foreign exchange, the price of exports has grown faster than the price of imports in October 2021. 

The terms of trade (the ratio of the price of imports: the cost of exports) grew by 1.5% resulting in an export earnings of $1.2 billion in October 2021, compared to the $854 million in October 2020. Despite the unit value indices growing by 26.4%, the import index fell by 1.6%. 

However, the artificial fertilizer ban has dramatically affected the tea industry as earnings dropped by 2.4% as prices fell by 7.3%.