The Export Oriented Enterprises (EOE)
2nd Quarter 2011
Highlights

1. Introduction
1.1 Below are the highlights of the results of the “Quarterly Survey of Employment” carried out at the end of June 2011 among Export Oriented Enterprises (EOE). The EOE consist of enterprises previously operating with an EPZ certificate as well as those manufacturing goods for exports and holding a registration certificate issued by the Board of Investment.

2. Export Oriented Enterprises (EOE)

Number of enterprises

2.1 The number of Export Oriented Enterprises at the end of the 2nd quarter of 2011 stood at 369 compared to 374 at the end of March 2011 and 387 at the end of June 2010.

2.2 During the second quarter of 2011, some 5 enterprises started operation while 10 closed down. In “Wearing apparel”, the most important group in the EOE, the number of enterprises, which stood at 147 at the end of March, remained the same at the end of June 2011 and was 150 at the end of June 2010.

Employment evolution

2.3 During the 2nd quarter of 2011, total employment increased by 388 (+0.7%) from 56,132 at the end of March 2011 to 56,520 at the end of June 2011. Male employment decreased by 287 while female employment rose by 675. Employment in “Wearing Apparel” increased by 369 (+1.0%) while that in “Textile yarn and fabrics” fell by 94. Total employment includes 18,289 foreign workers, 367 more than the figures registered at the end of March 2011.

2.4 From June 2010 to June 2011, total employment decreased by 1,564 (-2.7%) from 58,084 to 56,520. Male employment fell by 729 and female employment by 835 respectively. Employment in “Wearing apparel” fell by 2,451 (-6.0%), “Electric and electronic products” by 100 (-20.9%) and “Jewellery and related articles” by 95 (-6.5%). On the other hand, increases were noted in “Food” (+220 or +4.6%), “Textile yarn and fabrics” (+67 or +1.6%), “Optical goods” (+79 or +24.2%), “Electronic watches and clocks” (+135 or +22.0%), “Leather products and footwear” (+89 or +14.5%) and “Other” product group (+572 or +15.8%).

Exports and Imports

2.5 EOE exports for the 2nd quarter of 2011 is estimated at Rs. 10,921 million, that is, 9.0% higher compared to the previous quarter of 2011 and 7.0% higher compared to the corresponding quarter of 2010.

2.6 The United Kingdom (UK), France and the United States of America (USA) remain the principal EOE markets, accounting for Rs. 6,965 million or around 64% of total exports. Compared to the corresponding quarter of 2010, exports to UK increased by Rs. 202 million (+6.6%), to France by Rs. 81 million (+3.9%) and to the USA by Rs. 165 million (+12.2%).

2.7 EOE imports during the 2nd quarter of 2011 were estimated at Rs. 6,163 million, representing an increase of Rs. 358 million (+6.2%) over the previous quarter and an increase of Rs. 907 million (+17.3%) compared to the corresponding quarter of 2010. Imports of raw materials rose by Rs. 823 million (+16.2%) and those of machinery and equipment by Rs. 84 million (+47.7%) compared to the corresponding quarter of 2010.

2.8 It is to be noted that the above figures do not include transactions of the EOE with the Freeport. In second quarter of 2011, EOE sales to the Freeport amounted to Rs. 60 million compared to Rs. 220 million in the corresponding period of 2010.

September 2011