Sri Lanka Balance of Trade

Sri Lanka’s trade deficit widened to $776 million in February 2026, the largest trade deficit in four months and up from $411.3 million in the same month a year earlier, as import growth significantly outpaced the marginal increase in exports. Goods exports rose 0.47% year-on-year to $1,057.8 million, driven by broad-based gains across most product categories. Mining products surged 142.86%, led by higher shipments of earths and stone. Agricultural exports increased 1.53%, particularly rubber, while industrial product exports declined 0.06%. Meanwhile, goods imports rose significantly by 25.24% year-on-year to $1,833.8 million. Consumer goods imports jumped 35.7%, mainly reflecting higher purchases of personal vehicles, which totaled $204.8 million, including both personal and commercial vehicles. Investment goods imports also rose 35%. These increases were partially offset by a decline in imports of intermediate goods of 11.92% in the prior period but rose 18.26% this month.

Sri Lanka’s trade deficit narrowed to $654.6 million in January 2026, the smallest trade deficit in five months and down from $733 million in the same month a year earlier, as export growth outpaced the increase in imports. Goods exports rose 9.11% year-on-year to $1,148.7 million, driven by broad-based gains across most product categories. Mining products surged 393.95%, led by higher shipments of ores, slag and ash. Agricultural exports increased 18.85%, particularly unmanufactured tobacco, while industrial product exports grew 5.9%. Meanwhile, goods imports rose slightly by 0.99% year-on-year to $1,803.3 million. Consumer goods imports jumped 24.92%, mainly reflecting higher purchases of personal vehicles, which totaled $224 million, including both personal and commercial vehicles. Investment goods imports also rose 15.42%. These increases were partially offset by a decline in imports of intermediate goods of 11.92%.

Sri Lanka’s trade deficit widened to $997.2 million in December 2025 from $822.7 million a year earlier, as imports continued to outpace exports. Goods imports rose 12% year on year to $2,155.2 million, driven in part by vehicle purchases. Vehicle imports, including personal and commercial vehicles, totaled $301 million in December, bringing cumulative vehicle imports in 2025 to $2,047 million. Meanwhile, exports increased 5.1% year on year to $1,158 million. For 2025 as a whole, the cumulative trade deficit widened to about $7.9 billion compared with 2024, despite export earnings reaching a historically high level. The United States, India, and the United Kingdom remained Sri Lanka’s main export destinations, while China, India, and the United Arab Emirates were the leading sources of imports.