Sri Lanka Trade Deficit Widens in August

Sri Lanka’s trade deficit widened to $674 million in August 2026, from $414 million a year earlier, as imports rose 12.8% year-on-year to $1.91 billion, while exports fell 3.3% to $1.24 billion. In the first eight months of 2026, the cumulative trade deficit widened to $7.2 billion, from $4.3 billion in the corresponding period of 2025, as imports surged 24.1% to $16.56 billion. The increase was driven by a 61.6% jump in fuel purchases, which reached $4.0 billion amid rising energy prices due to the US-Iran war. Imports of motor vehicles amounted to $1.68 billion over the same period. Exports increased at a much slower pace, rising 3.3% to $9.38 billion.

Sri Lanka's trade deficit widened to $829 million in June 2026 from $540 million a year earlier, as import growth outpaced export gains. The external sector continued to reflect the impact of developments in the Middle East. Imports rose 17.3% year-on-year to $1.97 billion, driven by a 40.2% increase in fuel import expenditure, mainly due to higher spending on refined petroleum products. Meanwhile, exports edged up 0.2% to $1.14 billion. The services account surplus narrowed 33.8% from a year earlier to $162 million, as services outflows increased faster than inflows. In the first half of 2026, the cumulative trade deficit widened to $5.5 billion from $3.3 billion in the corresponding period of 2025.

Sri Lanka’s trade deficit widened to $968 million in May 2026 from $473 million a year earlier, marking a 104.8% increase as import growth outpaced export gains. Imports surged 45.4% to $2.19 billion, with fuel import spending jumping 112% due to higher oil prices and larger volumes. Exports rose 13.4% to $1.70 billion, supported by an 18.3% increase in goods shipments to $1.2 billion, while services exports edged up 2.5% to $475 million. In the first five months of the year, Sri Lanka’s cumulative trade deficit reached $4.66 billion.