August 23, 2022 [ Economy Next ] – Sri Lanka’s container transshipment volumes fell 4.5 percent from a year ago to 483,070 twenty foot equivalent units in June 2022 as domestic imports also fell, data shows, as the economy was contracted to stabilize a soft-peg which collapsed due to earlier money printing.
Domestic container volumes fell 25 percent from a year ago to 80,386 TEUs in June.
Total containers handled in June fell 9.3 percent to 577,082.
In the six months to June total container volumes in Sri Lanka were down 0.6 percent to 3.554 million TEUs.
Colombo’s container transshipment is linked to Indian external trade and global trade though domestic conditions like strikes or unrest may affect port activity in some months.
In June volumes recovered somewhat from a trough in May.
Sri Lanka’s domestic container volumes started to fall steadily after March after Central Bank Governor Nandalal Weerasinghe allowed interest rates to go up to limit money printing and credit.
Sri Lanka’s soft-peg with the US dollar collapsed from 200 to 360 to the US dollar in a failed float with a surrender requirement (forced dollar sales to the central bank) and low rates.
Global economic activity is also moderating as the Federal Reserve and other central bank try to allow rates to go up after printing money into a healthy banking system during the Coronavirus crisis to boost growth driving commodity prices and overall inflation to high levels.
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