• Record worker remittances drive third consecutive monthly surplus
• Gross official reserves rise to $ 6.5 b, supported by IMF tranche, forex purchases

Sri Lanka’s current account recorded a surplus for the third consecutive month in March, driven by the record inflows of workers’ remittances, Central Bank data showed.

Current account recorded a surplus of $ 459.5 million in March, reporting an increase of 76.8% year-on-year (y-o-y), while the current account surplus for the first three months stood at $ 949 million.

Meanwhile, the merchandise trade deficit expanded in March to $ 395.6, showing a modest improvement compared to February.

“The terms of trade improved marginally during the month, as the decline in import prices outpaced the decrease in export prices,” Central Bank said.

Secondary income inflows were led by earnings in remittances, recording the highest level of monthly remittances in March at $ 693 million, while earnings from tourism in March were estimated at $354 million in comparison to $ 338 million in March 2024.

Further, foreign investments in the government securities market recorded a net inflow of $ 49 million, while the foreign investments in the Colombo Stock Exchange (CSE) recorded a net outflow of $ 6 million during the month.

Foreign inflows to the government securities market stood at $ 95 million in the first three months of the year.

Also, the Central Bank said that gross official reserves increased to $ 6.5 billion by end March, supported by the receipt of the fourth tranche under the International Monetary Fund’s extended fund facility (EFF) arrangement and the net purchases $ 402 million from the domestic foreign exchange market during the month.