• Central Bank projects 0.9% of GDP increase in 2025 surplus, despite full import relaxation
• Favourable petroleum prices, strong tourism, and remittances contribute to external stability

Sri Lanka is expected to record a surplus in its current account for the third consecutive year in 2025, with a 0.9% of GDP increase projected in the surplus, Central Bank Governor Dr. Nandalal Weerasinghe said.

Speaking at the monetary policy review press briefing yesterday (22), he said that Sri Lanka is going to have a third year of current account surplus in 2025, even after full relaxation of import controls.

“Our projection on the external side, although the external demand factor is lower, but still, because of the favourable impact on the petroleum prices, export prices and tourism and remittances doing well, this is going to be the third year of current account surplus,” he said.

He added that the Central Bank expects the current account surplus to increase by 0.9% of GDP in 2025 compared to 2024.

Sri Lanka recorded a current account surplus of $ 1.43 billion in 2023 and $ 1.31 billion in 2024, amidst import controls by the government. The current account surplus in Q1 stood at $ 948 million.

Weerasinghe said that compared to the last review, external aggregate demand is expected to be lower than anticipated due to global and geopolitical uncertainties.

“When it comes to Sri Lankan exports, we still don’t know because we have a 90-day pause… We would have to wait and see what the outcome would be,” the Governor said.

Further, he said that Letters of Credit (LCs) opened by banks for the import of motor vehicles amounted to $ 450 million by May and that the Central Bank has made $ 850 million net purchases year-to-date from the domestic foreign exchange market.