Sri Lanka’s External sector records a modest performance in October 2016
The Economic research Department of Central Bank states that Sri Lanka’s external sector has recorded a modest performance in October 2016 with a deterioration in the trade deficit amidst continued growth in tourist earnings.
The trade deficit has widened in October as a result of higher import expenditure despite a marginal growth in export earnings. The Significant increase in import expenditure in October 2016 was mainly due to the import of a dredger vessel for the port city construction project.
Meanwhile workers’ remittances have been marginally higher while a healthy growth was observed in earnings from tourism during October 2016.
Although inflows to the Colombo Stock Exchange and long term load proceeds to the Government supported the financial account of the Balance of Payments (BOP), the government securities market ended up witnessing a net outflow during October 2016.
The leading merchandising exports markets for Sri Lanka during the first ten months of the 2016 were USA, UK, India, Germany and Italy that has accounted for about 51 per cent of total exports