Sri Lanka’s trade deficit contracts with drop in imports

Sri Lanka’s trade deficit contracts with drop in imports

22 August 2019 12:30 pm

Sri Lanka’s external sector strengthened further in June 2019 with a marked contraction in the trade deficit while gross official reserves were augmented with the proceeds of the issuances of two international sovereign bonds (ISBs).

In June 2019, the trade deficit narrowed to US dollars 316 million, the lowest since October 2010.  This considerable reduction was due to the decline in import expenditure by 23.1 per cent (year-on-year) and an increase of export earnings by 5.8 per cent (year-onyear).

Earnings from tourism picked up in June, gradually recovering from the impact of the Easter Sunday attacks.

Tourism sector earnings recorded an increase of  66.8 per cent in June 2019 in comparison to May 2019.

However, earnings from tourism declined on a year-on-year basis by 57.0 per cent in June 2019.

Workers’ remittances at US dollars 537 million in June 2019 recorded a growth of 2.5 per cent (year-on-year). On a cumulative basis, workers’ remittances amounted to US dollars 3,270 million during the first half of 2019.