Sri Lanka witnessed a widening merchandise trade deficit in January, with figures soaring to US$ 514 million compared to US$ 445 million in the same period last year, primarily attributed to a significant surge in imports.
According to provisional data disclosed by the Central Bank this week, earnings from merchandise exports experienced a slight decrease of 0.8 per cent Year-on-Year (YoY), totalling US$ 971 million in January 2024 as opposed to US$ 978 million in January 2023. Meanwhile, merchandise imports witnessed a substantial rise, climbing by 6.2 per cent YoY to US$ 1,512 million in January 2024.
The surge in expenditure on consumer and investment goods, facilitated by the relaxation of import restrictions, played a pivotal role in this notable increase, as reported by the Central Bank.
