
Sri Lanka’s cumulative trade deficit widened to USD 6 billion in 2024, up from USD 4.9 billion in 2023, according to the Central Bank of Sri Lanka (CBSL).
Despite recording the second highest export earnings in history, the increase in import expenditure outpaced export growth, leading to a larger trade deficit.
In 2024, earnings from merchandise exports rose by 7.2% year-on-year, reaching USD 12.8 billion. However, expenditure on merchandise imports also saw a 12.1% increase, totaling USD 18.9 billion, driven by growth across all major import categories.
Additionally, foreign investments in government securities saw a net outflow of USD 179 million for the year. However, a net inflow was recorded in the final three months of 2024, with December seeing a net inflow of USD 18 million.
Sri Lanka’s gross official reserves increased to USD 6.1 billion by the end of 2024, compared to USD 4.4 billion at the end of 2023.
This rise was supported by high-level net purchases by the central bank and funds received from multilateral institutions.
The reserves also include a USD 1.4 billion currency swap facility with the People’s Bank of China, renewed for three years in December 2024.