The external sector of Sri Lanka’s economy showed resilience in April 2025, supported by strong inflows from tourism earnings and workers’ remittances, according to the Central Bank of Sri Lanka (CBSL).
The CBSL’s Economic Research Department reported that the monthly current account has remained in surplus since January 2025, reflecting the external sector’s stability.
However, the merchandise trade deficit widened in April 2025 compared to both April 2024 and March 2025, due to merchandise imports growing faster (17.5% year-on-year) than exports (10.4% year-on-year).
The increase in imports was mainly driven by higher purchases of motor vehicles, valued at USD 134 million.
The terms of trade improved in April, as the decline in import prices outpaced the decline in export prices.
Foreign investment in government securities shifted from a net inflow in March to a marginal net outflow of USD 12 million in April.
Conversely, foreign investments in the Colombo Stock Exchange reversed from a net outflow to a small net inflow of USD 3 million, considering both primary and secondary markets.
