Sri Lanka’s export earnings decline in July: Central Bank

The External Sector Performance Review published by the Central Bank of Sri Lanka reveals that Sri Lanka’s trade deficit widened in July compared to the corresponding period of the previous year.

According to the report, although steady growth was recorded for several months this year, export earnings contracted by seven percent, from US$ 1.1 billion in July 2018 to 999 million dollars in July this year.

Meanwhile, Sri Lanka’s import expenditure declined by 2.2 percent year on year in July.

The export of a naval craft in July 2018 as well as reduced earnings from petroleum products due to lower bunker fuel prices are attributed for the lower contribution of industrial exports to export earnings figures.

Moreover, the report indicates a steady recovery in tourist arrivals following the 21 April terrorist attacks with visitor numbers increasing by 83.4 percent in July compared to the prior month.

It is estimated that earnings from tourism amounted to US$ 217 million in July versus 409 million dollars a year back.

Furthermore, foreign investments in government securities are said to have recorded a net outflow of US$ 33 million for July whereas gross official reserves stood at 8.3 billion dollars at the end of that month, which is equivalent to 4.9 months of imports.