The Central Bank of Sri Lanka (CBSL) says the external sector of the Sri Lankan economy remained robust in the first half of 2025, recording a current account surplus despite the widening of the merchandise trade deficit.
According to the CBSL, the merchandise trade deficit widened in June 2025 compared to June 2024, reflecting a higher growth in imports than exports.
Total exports, including merchandise goods and services, amounted to US dollars 10.1 billion in the first half of 2025, recording a y-o-y growth of 6.8 per cent.
Vehicle imports, including both personal and commercial vehicles, amounted to US dollars 163 million in June 2025, bringing the total vehicle imports for the first half of 2025 to US dollars 475 million.
The United States, India, and the United Kingdom continued to be the main export destinations, while China, India, and the United Arab Emirates remained the top import sources during both June 2025 and the first half of the year.
Both import and export prices declined during the month of June 2025, but the terms of trade improved as the decline in import prices exceeded the decline in export prices.
The services sector net inflows recorded an 8.1 per cent y-o-y growth during the first half of 2025, reaching US dollars 2.1 billion in comparison to US dollars 1.9 billion in the same period of 2024.
Tourist earnings were estimated at US dollars 1.7 billion during the first half of 2025, recording a y-o-y cumulative growth of 10.0 per cent, which indicates a steady expansion over the exceptional recovery witnessed in 2024.
Workers’ remittances, at US dollars 3.7 billion, recorded a growth of 18.9 per cent (y-o-y) during the first half of 2025, compared to US dollars 3.1 billion in the corresponding period of 2024.
Foreign investment in the government securities market recorded a net inflow of US dollars 90 million, while the foreign investment in the Colombo Stock Exchange (CSE) (considering both primary and secondary markets) recorded a net outflow of US dollars 39 million during the first half of 2025.
By the end of June 2025, amidst debt service payments, gross official reserves (GOR) stood at US dollars 6.1 billion, including the swap facility with the People’s Bank of China (PBOC).
As of the end of July 2025, the year-to-date depreciation of the Sri Lanka rupee against the US dollar was 3.2 per cent. (Newswire)
