Sri Lanka’s Export Earnings Cross US$ 10 Billion Mark in H1 2026, But Trade Deficit Widens to US$ 5.5 Billion

  • Export earnings surpassed US$ 10 billion, rising 3.3% YoY to US$ 10.4 billion (H1 2026), per Central Bank’s External Sector Performance report
  • • Merchandise exports grew 6.3% YoY to US$ 6.9 billion, offsetting a decline in services exports
  • • Merchandise trade deficit widened sharply to US$ 5.5 billion (vs. US$ 3.3 billion in H1 2025) as imports outpaced export growth

Current Account

• External current account recorded a deficit of US$ 245 million in H1 2026 (vs. surplus in H1 2025)

• June alone posted a US$ 149 million deficit — third consecutive monthly deficit

Import Pressures

• Fuel import bill surged 58.8% YoY to ~US$ 3,168 million

• Motor vehicle imports totaled US$ 1,254 million

Remittances – A Bright Spot

• Workers’ remittances rose 23.2% YoY to US$ 4.6 billion (Jan–Jun)

• June remittances up 9.3% YoY to US$ 695 million

Tourism – Under Pressure

• Tourist arrivals dipped slightly to 1,146,573 (vs. 1,168,044 in H1 2025), impacted by Middle East conflict

• Tourism earnings fell 11.8% YoY to US$ 1,511 million

• June earnings down 10.8% YoY to US$ 151 million

Reserves & Currency

• Gross official reserves at US$ 6.5 billion (end-June 2026), including PBOC swap facility

• Rupee depreciated 7.8% YTD against USD (as of end-July), though pace of depreciation has moderated recently

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