Sri Lanka Trade Deficit Hits Record High

Sri Lanka’s trade deficit widened to $1.38 billion in April 2026, the largest gap since records began in 2002 and up 27% from a year earlier. Goods imports surged 45.7% year-on-year to $2.46 billion, driven by a 149.9% jump in fuel imports to $886 million amid soaring global oil prices linked to the Middle East conflict and higher import volumes. Motor vehicle imports also totaled $208 million. Meanwhile, exports increased 10.9% to $1.07 billion. In the first four months of 2026, the trade deficit widened to $3.7 billion from $2.3 billion in the same period of 2025.

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%.