Sri Lanka’s Current Account Deficit Narrows in Q4 2025

Sri Lanka’s current account deficit shrank to $134 million in the fourth quarter of 2025, down from $234 million in the same period a year earlier. The improvement came despite gaps in the goods account ($2.72 billion) and primary income account ($500 million), which were offset by surpluses in services ($859 million) and secondary income ($2.23 billion). For the full year 2025, the country recorded a current account surplus of $1.67 billion, up from $1.21 billion in 2024.

Sri Lanka’s current account surplus widened to $400 million in the third quarter of 2025 from $291 million in the same period a year earlier. The secondary income surplus surged to $2.051 billion from $1.660 billion, while the primary income deficit narrowed to $536 million from $604 million. These improvements were partially offset by a widening goods deficit, which rose to $1.90 billion from $1.66 billion, and a decline in the services surplus to $789 million from $896 million in Q3 2024.

Sri Lanka’s current account surplus widened to $501 million in the second quarter of 2025 from $421 million in the same period a year earlier. The increase was mainly driven by a rise in the services surplus to $839 million from $751 million, and a jump in the secondary income surplus to $1.891 billion from $1.569 billion. Meanwhile, the primary income deficit narrowed to $500 million from $578 million. Offsetting these gains, the goods deficit widened to $1.73 billion from $1.321 billion in Q2 2024.