November 03, Colombo (LNW): Sri Lanka’s external sector experienced a slowdown in September 2025, marking the first monthly current account deficit of the year after eight consecutive months of surpluses, according to the Central Bank of Sri Lanka (CBSL).
Despite the September dip, the overall current account for the first nine months remained in surplus, amounting to approximately US$ 1.9 billion.
The setback was largely attributed to a widening trade gap, as import expenditure surpassed US$ 2 billion, primarily due to a notable rise in vehicle imports.
Meanwhile, the services sector showed some resilience, with net inflows climbing to US$ 2.8 billion over the January–September period. Tourist arrivals continued to increase compared to the previous year, although revenue growth in the sector remained moderate.
Workers’ remittances maintained strong performance, registering a 20 percent year-on-year increase during the first nine months, reflecting sustained inflows from overseas employment.
Foreign investment trends were uneven—while the government securities market recorded net gains, the Colombo Stock Exchange witnessed foreign outflows in both primary and secondary markets.
By the end of September, Sri Lanka’s gross official reserves, inclusive of the currency swap arrangement with the People’s Bank of China, stood at around US$ 6.2 billion, even after external debt settlements. Over the ten months leading to October 2025, the Sri Lankan rupee depreciated by 3.9 percent against the US dollar.
