• In July 2024, Sri Lanka's trade deficit widened due to higher imports, while export prices fell more than import prices. Services inflows rose, mainly from IT/BPO and sea transport, but outflows also increased. There was a net outflow in government securities and a net inflow in the stock market. Gross official reserves grew to $5.7 billion, covering 3.8 months of imports.

In July 2024, Sri Lanka's merchandise trade deficit widened to $604 million from $367 million in July 2023, driven by increased import expenditure, while the cumulative trade deficit for January to July 2024 rose to $3,144 million from $2,657 million in the same period in 2023. The terms of trade deteriorated by 1.1% due to a greater decline in export prices than import prices. Export volume increased by 15.7% despite a 4.3% decline in unit value, and import volume rose by 29.1% with a 3.2% decrease in unit value. Services sector inflows, excluding tourism, grew to $337 million, mainly from IT/BPO and sea transport, but outflows also rose significantly to $290 million, largely due to increased overseas travel and transport costs. The government securities market saw a net outflow of $23 million in July 2024, with a cumulative outflow of $221 million for January-July 2024, while the Colombo Stock Exchange experienced a net inflow of $12 million in July and $32 million cumulatively. Gross official reserves reached $5.7 billion at the end of July 2024, covering 3.8 months of imports, including a swap facility from the People's Bank of China.

Merchandise trade deficit widens in July | The Morning