SL External Sector Update: September CAD ends 2025 surplus streak 📉

• Sri Lanka registered its first monthly Current Account Deficit (CAD) of 2025 in September, hitting US$ 183 million, primarily driven by a surge in vehicle imports (US$ 286 million for the month). • The cumulative Jan-Sep current account remains strong, recording a surplus of US$ 1.9 Billion, up a robust 29% YoY. • Merchandise Trade figures show the deficit widening 23% YTD to US$ 5.17 Bn. Exports grew 7.3% YTD to US$ 10.2 Bn, while imports jumped 12.2% YTD to US$ 15.4 Bn. • Key growth drivers continued to perform well: • Worker Remittances showed strong inflows, up 20% YTD to US$ 5.8 Bn. • Tourism earnings rose 5.3% YTD, totaling US$ 2.47 Bn. • Gross official reserves, including the PBOC swap, remained steady at US$ 6.2 Bn by end-September. • Foreign investment saw a net inflow to Government securities, contrasting with a net outflow from the Colombo Stock Exchange (CSE). The Rupee depreciated 3.9% YTD against the USD.