The deficit in the merchandise trade account narrowed to USD 410 million in January 2023, the Central Bank of Sri Lanka reported.
According to the Central Bank, a deficit of USD 410 million has been reported in January 2023 from USD 857 million recorded in January 2022 due to a larger decline in imports, compared to the decline in exports.
However, the merchandise trade deficit in January 2023 widened, compared to the deficit of USD 358 million recorded in December 2022.
Meanwhile, earnings from merchandise exports declined by 11.3 per cent in January 2023 to USD 978 million, continuing the moderation observed since September 2022, though at a slower pace than expected.
This decline was observed across all main categories, and the compression of industrial exports was noticeable.
The Central Bank stated that expenditure on merchandise imports remained at subdued levels in January 2023.
Accordingly, expenditure on imports declined by 29.2 per cent (y-o-y) to USD 1,388 million in January 2023, compared to USD 1,959 million recorded in January 2022 and USD 1,426 million in December 2022.
The decline in expenditure in all sectors contributed to this decline although the decline in intermediate goods contributed the most.
However, workers’ remittances recovered to USD 437 million during January 2023, in comparison to USD 259 million in the corresponding month in the previous year.
Total departures for foreign employment were recorded at 24,236 during the month of January 2023.
Total departures of foreign employment comprised unskilled (7,556), skilled (7,283) and domestic aid (6,120) categories.
Tourist arrivals also showed an increase in January 2023 to 102,545, compared to 91,961 arrivals recorded in December 2022 and 82,327 recorded in January 2022.
Russia, India, the United Kingdom, Germany, and Australia remained the main source countries for tourist arrivals in January 2023.
Earnings from tourism in the month of January 2023 are estimated at USD 162 million, in comparison to USD 127 million in the previous month and USD 152 million in the corresponding month in the previous year.
Full report: External Sector Performance_January_2023 (E)