Latest data released by the Central Bank of Sri Lanka (CBSL) reveals that Sri Lanka’s Trade Deficit has further decreased due to the country’s export earnings increasing and import expenditure decreasing last May.

While the reduction in imports of crude oil, gold and diamonds have resulted in the reduction of import expenditures, the inflow of remittances into the country by overseas workers and tourism earnings have increased in May.

Hence, the balance of payments has shown a healthy surplus during the first five months of this year, the CBSL has stated.

When compared to May 2013, the export earnings have increased by 11.1 percent to USD 882 million in May this year while import expenditure had decreased by 17.6 percent to USD 1,275 million.

When compared to the same period last year, during the first five months of this year the trade deficit has decreased by 19.3 percent.

Export performance

The increase in export earnings during May has resulted in the increase of export earnings in almost all sectors.

The major contribution has been from the industrial exports sector followed by the agricultural sector. Apparels export and rubber based products including tyres have made significant contributions towards the export earnings.

Tea and coconut based products have increased in the agricultural sector. In May, export earnings through coconut based products have increased by 91.3 percent to USD 30 million since the weather conditions had been favourable for coconut cultivation.