External sector growing in strength

SRI Lanka's external sector remained robust in the first seven months of 2025, with the current account registering consistent monthly surpluses despite a widening of the merchandise trade deficit, according to the Central Bank of Sri Lanka (CBSL).

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■ Current account surplus up 36.5% YoY in Jan.-Jul. 2025 to $ 1.7 b on the back of strong exports, tourism and remittances

■ However, merchandise trade deficit widens 22.5% to $ 3.8 b

■ Imports rise 11.8% YoY to $ 11.6 b in seven-month period

■ In July, trade deficit narrowed to $ 580 m vs. $ 603 m a year ago, with export growth outpacing imports

■ Vehicle imports in July at $ 193 m, boosting YTD figure to $ 668 m

■ Worker remittances reach highest monthly figure since December 2020

■ Reserves unchanged from a month ago at $ 6.1 b end-July

In its latest external sector data release, the CBSL highlighted that the current account registered a surplus of $ 1.7 billion during the first seven months, up 36.5% from $ 1.2 billion in the same period last year, with robust export growth, higher workers' remittances, and improved earnings from services and tourism.