• The external current account recorded a larger surplus in January 2026, compared with recent months as well as January 2025. This follows the estimated surplus of US$ 1.7 billion (provisional) in 2025 and indicates continued improvement in external sector performance.
• The merchandise trade deficit narrowed on a year-on-year basis in January 2026, as export growth exceeded the growth in imports.
• Imports of vehicles, including both personal and commercial vehicles, amounted to US$ 224 million during January 2026, compared to US$ 301 million recorded in December 2025.
• However, the terms of trade deteriorated compared to January 2025, as import prices rose at a faster pace than export prices.
• The surplus in the services account marginally decreased in January 2026 on a year-on-year basis, reflecting a higher growth in services outflows compared to inflows to the services account. The increase in services outflows was mainly driven by higher expenditure on overseas travel.
• In January 2026, tourist arrivals recorded an increase on a year-on-year basis and surpassed the monthly level recorded in 2025. Tourist earnings1 were estimated at US$ 378 million in January 2026.
• Workers’ remittances2 amounted to US$ 751 million in January 2026, recording a notable increase of 31.1 per cent from the same month of the previous year.
• In January 2026, foreign investments in the government securities market recorded a net inflow of US$ 17 million.
Meanwhile, foreign investments in the Colombo Stock Exchange (CSE), including both primary and secondary market transactions, recorded a net outflow of US$ 22 million in January 2026.
• Gross official reserves (GOR), including the swap facility with the People’s Bank of China (PBOC), recorded at US$ 6.8 billion at end January 2026. The Central Bank remained a net purchaser foreign exchange from the domestic foreign exchange market during the month.
• As of end February 2026, the year to date appreciation of the Sri Lanka rupee against the US dollar was 0.2 per cent.
