Saturday, 12 October 2019 09:56

Sri Lanka’s Trade deficit narrowed making external sector resilient

Sri Lanka’s trade performance during the first eight months of 2019 recorded an improvement over the previous year, supported by a notable contraction in the growth of imports and a modest growth of exports, Central Bank ,announced yesterday (Friday 11).

Tourist arrivals continued to improve, recovering gradually from the effects of the Easter Sunday attacks, while workers’ remittances moderated.

Outflows of foreign investment in the Government securities market experienced in August 2019 have ceased thereafter, while the equity market recorded a modest net inflow so far during the year when both primary and secondary market transactions are considered.

The Sri Lankan rupee depreciated against the US dollar in September partly driven by adverse speculation, while his trend reversed in October with continued inflows to the foreign exchange market.

The Sri Lankan rupee remains appreciated against the US dollar by 1.3 per cent thus far during the year, while gross official reserves are estimated at US dollars 7.6 billion by end September 2019, providing an import cover of 4.5 months.

(LI)

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