Sri Lanka’s external sector showed signs of weakness in September 2025, as the country recorded a monthly current account deficit after eight consecutive months of surpluses.
Despite this setback, the cumulative current account for the first nine months of the year remained positive, with a surplus estimated at US$ 1.9 billion, according to data from the Central Bank of Sri Lanka.
The trade balance deteriorated in September as import expenditure surpassed US$ 2 billion, driven largely by a sharp rise in vehicle imports.
In the services sector, net inflows reached US$ 2.8 billion over the nine months to September. Tourist arrivals increased notably compared to the same period last year, though tourism earnings showed only moderate growth on both monthly and cumulative bases.
Workers’ remittances continued to perform strongly, rising 20 percent year-on-year during the first nine months of 2025 and sustaining positive momentum in the external sector.
Foreign investor sentiment remained mixed. The government securities market saw net inflows, while the Colombo Stock Exchange experienced net foreign outflows in both primary and secondary markets.
Gross official reserves, including the swap facility with the People’s Bank of China, remained stable at around US$ 6.2 billion by the end of September, even after meeting external debt obligations. Meanwhile, the Sri Lankan rupee depreciated by 3.9 percent against the US dollar over the ten months ending October 2025.
