Sri Lanka records trade balance surplus after 20 years

COLOMBO (News 1st); The Central Bank of Sri Lanka (CBSL) says that the country's merchandise trade balance recorded a surplus in June 2022 for the first time since August 2002, after a period of 20 years.

In a release, CBSL states that the trade balance surplus reflects the impact of historically high monthly export earnings and the continued decline in import 
expenditure. 

Earnings from tourism recorded an increase in June 2022 (year-on-year) from the low base, despite the negative sentiments associated with travel advisories and the ongoing shortage of fuel and 
resultant transportation difficulties. 

Workers’ remittances moderated in June 2022, compared to May
2022, reflecting an increase of grey market activity of foreign exchange transactions. 

Foreign investment in the government securities market recorded a marginal net inflow, while that in the Colombo Stock 
Exchange (CSE) recorded a marginal net outflow during June 2022. The Central Bank continued to provide forex liquidity to finance essential imports, exhausting the usable level of gross official reserves. 

Meanwhile, the weighted average spot exchange rate in the interbank market remained around Rs. 360/-  per US dollar during the month.