Trade Deficit Contracts 24.7% Jan-Oct

Dec 15 2020

Sri Lanka’s trade deficit contracted 24.7 per cent to US$ 4.85 billion during the first ten months of this year from US$ 6.45 billion a year earlier, as imports and exports to the country during the period declined 19.9 per cent and 16.7 per cent respectively.

According to data released by the Central Bank of Sri Lanka, the Country’s trade deficit during October this year contracted 38.66 per cent to US$ 514 million from Rs 838 million a year earlier as imports and exports contracted 24.9 per cent and 13.2 per cent respectively.

Export earnings during the first ten months of this year reached nearly US$ 8.29 billion, down 16.7 per cent compared to US$ 9.96 billion a year ago, while expenditure on imports reached US$ 13.14 billion, down 19.9 per cent compared to US$ 16.41 billion.

In October last year, imports contracted 24.9 per cent to US$ 1.36 billion from US$ 1.81 billion a year ago, while exports declined 13.2 per cent to US$ 848 million from US$ 977 million.

Export earnings of Sri Lanka during the first ten months of last year were driven by industrial exports, which declined 19.5 per cent to US$ 6.31 billion from US$ 7.83 billion a year ago.

Agricultural exports declined 6.2 per cent to US$ 1.94 billion from US$ 2.08 billion, while mineral exports declined 35.6 per cent to US$ 18.1 million from US$ 28.1 million and unclassified exports declined 13.8 per cent to US$ 12.2 million from 14.2 million a year ago.

In October this year, industrial export declined 16.9 to US$ 633 million from US$ 762 million a year earlier, while mineral exports declined 36.8 per cent to US$ 2.2 million from US$ 3.5 million.

However, Agricultural exports in October increased 0.6 per cent to US$ 211 million from US$ 210 million a year ago, while unclassified exports increased 3.4 per cent to US$ 1.6 million from 1.5 million.

Meanwhile, expenditure on imports reduced due to reduced spending on consumer goods, which declined 11.8 per cent during the first ten months of this year to US$ 2.81 billion from US$ 3.19 billion a year ago, while import of intermediate goods declined 21.5 per cent to US$ 7.39 billion from US$ 9.42 billion a year ago and import of investment goods declined 22.9 per cent to US$ 2.92 billion from US$ 3.78 billion.

However, unclassified imports during the ten months under consideration increased 92.9 per cent to US$ 12.4 million from 6.4 million a year earlier.

On a monthly basis, expenditure on consumer goods declined 34.4 per cent to US$ 251.6 million in October this year from US$ 383 million a year ago, while intermediate goods declined 21.4 per cent to US$ 817 million from US$ 1,040 million, investment goods declined 24.9 per cent to US$ 293 million from 391 million and unclassified imports declined 83.5 per cent to 0.2 million from US$ 1.2 million.

All major segments, including vehicle, Gold and Fuel imports posted declines during the ten months as well as in October last year.