External sector posts strong 1H despite widening trade deficit

Current account posts $ 1.5 b surplus in 1H 2025, up 30.2% YoY; driven by strong exports, tourism, services and remittances Merchandise trade deficit widens 28.7% to $ 3.27 b amid higher imports Imports rise 12.5% YoY to $ 9.76 b; June imports alone at $ 1.68 b June trade deficit grows to $ 540 m vs. $ 370 m in June 2024 Vehicle imports hit $ 475 m in 1H; June total at $ 163 m China, India and UAE remain top import sources; terms of trade improve as import prices fall more than export prices

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

In its latest external sector data released, the CBSL highlighted that the current account registered a surplus of $ 1.5 billion during the first six months, up 30.2% from $ 1.1 billion in the same period last year, with robust export growth, higher workers’ remittances, and improved earnings from services and tourism.

Merchandise trade dynamics showed signs of pressure as the trade deficit widened in June 2025 compared to the same month in 2024, mainly due to a sharper increase in imports relative to exports.

Imports grew by 12.5% year-onyear (YoY) to $ 9.76 billion, compared to $8.68 billion a year earlier.