As a result of high monthly export earnings and the dropping of import expenditure over the years, the merchandise trade balance has recorded a surplus last month for the first time since August 2002, CBSL data showed.
The records reveal that the balance in the merchandise trade account in June 2022 has a surplus of US $21 million, compared to the deficit of US $652 million in the same month the previous year, indicating a trade surplus of US $110 million for the first time since August 2022.
CBSL data also showed that the cumulative deficit in the trade account during the period of January – June, 2022 narrowed to US $3,514 million from US $4,316 million over the same period in the previous year.
Despite growing sentiments discouraging travels to Sri Lanka and the fuel crisis barring smooth transportation, tourism earnings also recorded a rise in June 2022 (Y-o-Y) from the low base, while the workers’ remittances moderated in June 2022 compared to the month before, reflecting an increase of grey market operations catering to forex transactions, the CBSL added.
The central monetary regulator further disclosed that foreign investment in the government securities market recorded a marginal net inflow, and that the Colombo Stock Exchange (CSE) recorded a marginal net outflow during June, 2022.
The CBSL claimed that it continued to provide forex liquidity to finance the importation of essential commodities, exhausting the usable level of gross reserves.
It added that the weighted average spot exchange rate in the interbank market remained around Rs. 360 per US dollar during the month.
