• Sri Lanka’s trade deficit rose to US$ 634 million in September 2024 as imports surged 22%, outpacing a 4.1% export growth, largely due to increased consumer and investment goods demand.

In September 2024, Sri Lanka’s trade deficit grew significantly to US$ 634 million, driven by a sharp 22% increase in import expenditure, particularly in consumer and investment goods, compared to a 4.1% rise in exports, according to the Central Bank. This brought the cumulative deficit for January-September to US$ 4.2 billion, up from US$ 3.34 billion in 2023. While industrial exports, led by textiles and garments, grew year-on-year, high-value segments such as gems and machinery saw declines from August, and agricultural exports fell, with notable drops in seafood and tea. Imports rose mainly in intermediate goods, especially textiles, and investment goods like machinery, though fuel costs decreased due to lower prices. Consumer goods imports also saw a broad increase. Export volumes were up 10.3%, but prices dropped, deteriorating the terms of trade by 1.2% as import volumes rose by 27.6%, largely due to a decline in average prices.

Rising import demand widens trade deficit to US$ 634mn | Daily Mirror