Colombo (PTI): Global slowdown has started hitting Sri Lanka as exports have dipped by 9.4 per cent in September and trade deficit has widened for the first three quarters compared to that in the same period last year.

However for the first nine months, exports have grown 9.9 per cent.

Lower demand for goods and services has led to decline of 9.4 per cent at USD 652 million in September in export earnings the Central Bank said.

The cumulative export earnings in the first nine months of 2008 amounted to US dollars 6,150 million, a growth of 9.9 per cent over the corresponding period last year.

The trade deficit widened to USD 4,613 million for the first three quarters compared to the USD 2,453 million in the corresponding period last year, a rise of over 80 per cent. This despite an in increase in exports for the first three quarters.

Country's export sector is facing trying times as the US and other major export markets are grappling with one of the worst financial crises, an official statement said.

However, a commendable performance in the traditional and minor farm crops led agricultural exports to grow by over 12.5 per cent in September which partially insulated the 15.5 per cent drop in industrial exports.

Bucking the trend, tea exports also grew by 6 per cent in September 2008 year-on-year, in the midst of difficult times.

Sri Lankas tea prices, which had reached record highs in recently, decreased from the third week of September as certain buyers took on a "wait and see" attitude, in anticipation of further price reductions.