SL Current Account Surplus Narrows 68% in Feb Amid Rising Trade Deficit 📈

Sri Lanka’s external sector faced pressure in February 2026 as import growth significantly outpaced exports, leading to a sharp contraction in the monthly surplus. • Overall Figures • February Current Account Surplus: US$ 117.2 Mn (Down 68% YoY). • Cumulative Jan-Feb Surplus: US$ 486.9 Mn (Up 3.8% YoY). • Gross Official Reserves: US$ 7.3 Bn as of end-February. • Merchandise Trade • Trade Deficit: Expanded 88% YoY to US$ 776 Mn in February. • Imports: Surged 25.2% to US$ 1.83 Bn, despite a decline in vehicle imports ($194 Mn). • Exports: Marginal growth of 0.5% to US$ 1.05 Bn. • Services & Remittances • Services Surplus: Fell 16.7% to US$ 340 Mn. • Tourism: Earnings fell 4.2% YoY to US$ 352 Mn, despite a 16.3% rise in arrivals. • ICT/BPM: Tech-related exports dropped 20% to US$ 50 Mn. • Logistics: Inflows declined 26.8% to US$ 123.7 Mn. • Workers' Remittances: Strong growth of 33% YoY, reaching US$ 729 Mn. • Regional Impact & Risks • The Middle East conflict (starting late Feb) is driving up energy costs and freight insurance. • The Sri Lankan Rupee has depreciated 1.6% YTD as of March 2026 due to emerging external pressures. _Data based on provisional Central Bank of Sri Lanka (CBSL) reports._