The performance of the external sector further strengthened in July 2025, with the current account recording consecutive monthly surpluses, thus far in 2025.
Total exports, including merchandise goods and services, improved to US dollars 12.0 billion during the seven months ending July 2025, recording a y-o-y growth of 6.7 per cent. In July 2025, merchandise goods exports recorded the highest-ever monthly earnings, amounting to US dollars 1.3 billion. The merchandise trade deficit narrowed in July 2025 compared to July 2024, as the growth in exports outpaced that of imports.
Vehicle imports, comprising both personal and commercial vehicles, amounted to US dollars 193 million in July 2025, leading to total vehicle imports of US dollars 668 million for the first seven months of 2025.
The terms of trade deteriorated in July 2025, as the rise in import prices outpaced the increase in export prices.
The services sector net inflows recorded a modest decrease in July 2025 relative to its performance in the corresponding period of 2024. However, net inflows in the services sector recorded a 3.3 per cent increase during January-July 2025, amounting to US dollars 2.4 billion.
Tourist arrivals reached 200,244 during the month of July 2025, marking a growth of 6.6 per cent compared to July 2024. Accordingly, earnings from tourism in July 2025 were estimated at US dollars 318 million. Further, earnings from tourism were estimated at US dollars 2.0 billion during January-July 2025, recording a slight increase compared to US dollars 1.9 billion in the corresponding period of 2024.
Workers’ remittances amounted to US dollars 697 million in July 2025, recording the highest monthly workers’ remittances since December 2020.
Foreign investments in the government securities market continued to record a net inflow in July 2025, while the foreign investments in the Colombo Stock Exchange (CSE), covering both primary and secondary markets, recorded a net outflow during the month.
Gross official reserves (GOR), including the swap facility with the People’s Bank of China (PBOC), by end July 2025 remained broadly unchanged at US dollars 6.1 billion, amidst debt servicing.
As of end August 2025, the year-to-date depreciation of the Sri Lanka rupee against the US dollar was 3.3 per cent.
