The external sector of the Sri Lankan economy continued to strengthen in March 2025, with the highest monthly current account surplus recorded since the commencement of compiling monthly current account statistics in January 2023, Central Bank of Sri Lanka announced.
EXTERNAL SECTOR PERFORMANCE SUMMARY
March 2025
❖ The current account recorded a surplus for the third consecutive month in March 2025, mainly driven by the higher inflows of workers’ remittances.
❖ The merchandise trade deficit expanded in March 2025 relative to March 2024, yet showed a modest improvement compared to February 2025.
❖ The terms of trade improved marginally during the month, as the decline in import prices outpaced the decrease in export prices. Meanwhile, volume indices registered increases, which led to the increase in both export earnings and import expenditure in March 2025 (y-o-y).
❖ Earnings from tourism in March 2025 were estimated at US dollars 354 million in comparison to US dollars 338 million in March 2024.
❖ Workers’ remittances recorded US dollars 693 million during March 2025. This marks the highest level of monthly workers’ remittances recorded for March in any year in the past.
❖ Foreign investments in the government securities market recorded a net inflow of US dollars 49 million, while the foreign investments in the Colombo Stock Exchange (CSE) (considering both primary and secondary markets) recorded a net outflow of US dollars 6 million during the month.
❖ Gross official reserves (GOR) increased to US dollars 6.5 billion by end March 2025, supported by the receipt of the fourth tranche under the International Monetary Fund’s Extended Fund Facility (EFF) Arrangement and the net purchases (US dollars 402 million) by the Central Bank from the domestic foreign exchange market during the month.
❖ Year to date depreciation of Sri Lanka rupee against the US dollar was 2.3 per cent at end April 2025.
