The Central Bank of Sri Lanka (CBSL) has reported a narrowing cumulative trade deficit, reaching USD 4.9 billion in 2023, the lowest since 2010.
However, December 2023 revealed a widening trade deficit compared to the previous year.
In December, the country experienced a 6.2% decline in merchandise export revenue to USD 1 billion, primarily attributed to reduced earnings from industrial and mineral exports. Agricultural exports, on the other hand, witnessed an increase.
Cumulative export earnings for January to December 2023 fell by 9.1% to USD 11.91 billion compared to the previous year. Meanwhile, merchandise import expenditure in December 2023 rose to USD 1.48 billion, driven by increased imports of investment and consumer goods amid relaxed restrictions.
The overall import expenditure for 2023 decreased by 8.1% to USD 16.8 billion, providing a partial offset to the trade deficit. Notably, workers' remittances showed an upward trend, reaching USD 570 million in December 2023, a notable increase from both November 2023 and December 2022.
