Sri Lankas cumulative deficit in the trade account has actually expanded to USD 6 billion in 2024 compared to USD 4.9 billion in 2023.
Launching the external sector report for December 2024, the Central Bank of Sri Lanka (CBSL) kept in mind that although Sri Lanka recorded the second highest yearly export incomes in history, the growth in import expense exceeded the expansion of export profits, causing the greater trade deficit.Sri Lankas earnings from merchandise exports increased by 7.2% year-on-year to USD 12.8 billion in 2024.
The figure marks the 2nd greatest yearly export profits in history.Meanwhile, expenditure on merchandise imports in 2024 totaled up to USD 18.9 billion, showing a year-on-year boost of 12.1%, driven by growth in all significant import categories.Additionally, foreign investments in the government securities market tape-recorded a net outflow of USD 179 million in 2024.
A net inflow was observed in the last 3 months of 2024, and the net inflow in December 2024 was USD 18 million.The gross main reserves stood at USD 6.1 billion at end 2024 compared to USD 4.4 billion at end 2023, supported by net purchases by the main bank from the domestic foreign exchange market during 2024 at historically high levels and funds gotten from multilateral institutions.The GOR consists of the USD 1.4 billion currency swap facility with the Peoples Bank of China, which was renewed for 3 years in December 2024.