📉 Sri Lanka Current Account Returns to Deficit in Sep 2026

Sri Lanka’s external current account posted a deficit of US$ 128 Mn in September 2026, shifting from a surplus in August. The cumulative current account deficit for Jan-Sep 2026 reached US$ 420 Mn, according to Central Bank data. • Overall Trade Balance: Merchandise export earnings grew 21% YoY to US$ 1.377 Bn, outpacing import growth of 2.9% YoY (US$ 2.109 Bn). However, the cumulative trade deficit for Jan-Sep widened to US$ 7.9 Bn (vs US$ 5.2 Bn YoY). • Key Sector Breakdown: • Fuel Imports: Monthly spending fell for the 5th consecutive month, though cumulative Jan-Sep fuel spending rose 51.5% YoY to ~US$ 4.5 Bn. • Vehicle Imports: Expenditure dropped 34.4% YoY to US$ 188 Mn in Sep (Jan-Sep total reached US$ 1.87 Bn). • Services Account: Surplus declined 34.3% YoY to US$ 119 Mn, impacted by higher travel and air transport outflows. • Tourism: Earnings rose 1.5% YoY to US$ 186 Mn in Sep despite tourist arrivals easing 0.3% YoY. Jan-Sep cumulative tourism earnings dropped 9.2% YoY to US$ 2.2 Bn. • Remittances & Capital Flows: • Workers' Remittances: Increased 5.6% YoY to US$ 734 Mn in Sep (Jan-Sep cumulative up 18.1% YoY to US$ 6.9 Bn). • Foreign Capital Outflows: Net outflows recorded in government securities (US$ 39.9 Mn) and the Colombo Stock Exchange (US$ 4.7 Mn) during Sep. • Reserves & Currency: Gross official reserves stood at US$ 6.9 Bn at end-Sep (including the PBOC swap). The LKR depreciated 6.8% against the US dollar year-to-date by end-October.