Sri Lanka’s Central Bank’s external sector report recently outlined that the country’s level of gross official reserves at the end May 2018, stood at US $ 8.8 billion, compared to US $ 9.9 billion level reported in April 2018. Meanwhile Sri Lanka’s external sector had demonstrated a modest performance in May 2018.

Inflows to the financial account of the balance of payments (BOP) moderated with net outflows from the government securities market and a reduction in net inflows to the Colombo Stock Exchange (CSE).

“The deficit in the trade account continued to expand at a comparatively slower rate in May 2018, as export growth outpaced import growth” the reported added. Tourist earnings continued to increase while workers’ remittances declined during the month.

Reported noted that, reflecting the developments in the domestic and global foreign exchange markets, the Sri Lankan rupee depreciated by 3.3% against the US dollar by end May 2018 and by 4.5% so far during the year up to 20 July 2018.