• Despite record export earnings

Sri Lanka’s trade deficit widened to $ 6 billion in 2024, up from $ 4.9 billion in 2023.

Accordingly, the Central Bank of Sri Lanka (CBSL) noted that despite recording the second-highest annual export earnings in history, the increase in imports outpaced export growth, leading to the higher deficit.

Merchandise-export earnings grew by 7.2% to $ 12.8 billion, while import expenditure rose by 12.1% to $ 18.9 billion.

The report also highlighted a net outflow of $ 179 million in foreign investments in government securities, although a net inflow of $ 18 million was observed in December.

Sri Lanka’s gross official reserves stood at $ 6.1 billion at the end of 2024, supported by Central Bank actions and multilateral funding.