Sri Lanka’s current account recorded a marginal surplus in December 2025, contributing to a provisional annual surplus of US$ 1.7 billion for 2025, according to the Central Bank of Sri Lanka (CBSL). Most months last year also recorded monthly current account surpluses.
Despite a record high in export earnings, the merchandise trade deficit widened, reaching around US$ 7.9 billion for 2025. Vehicle imports totaled US$ 2.05 billion, with December alone accounting for US$ 301 million. The country’s terms of trade deteriorated slightly as export prices fell faster than import prices.
The services account surplus rose to US$ 344 million in December, bringing the cumulative 2025 surplus to US$ 3.7 billion. Tourist arrivals increased 15.1% year-on-year, surpassing 2018 levels, though earnings grew marginally by 1.6%, remaining below 2018 levels.
Workers’ remittances hit a record high, exceeding US$ 8 billion in 2025, a 22.8% increase from 2024.
Foreign investments showed mixed trends, with a marginal US$ 5 million outflow from government securities in December, but a net inflow of US$ 248 million for the year. Investments in the Colombo Stock Exchange recorded a net outflow of US$ 122 million in 2025.
Gross official reserves improved to around US$ 6.8 billion by end-2025, aided by multilateral receipts and net forex purchases. The Sri Lanka rupee appreciated 0.2% against the US dollar in January 2026 following a depreciation in 2025. (NewsWire)