📉 Sri Lanka's External Current Account Deficit Extends to Fourth Month in July

• Overall Trade Figures: The external current account recorded a US$ 142 Mn deficit in July, pushing the Jan-July cumulative shortfall to US$ 387 Mn. The 7-month trade deficit expanded by ~67% YoY to US$ 6.5 Bn, driven by a 26% YoY rise in total imports to US$ 14.6 Bn. • Import Drivers: The cumulative fuel import bill surged 59.9% YoY to US$ 3.62 Bn, driven mainly by higher crude oil costs. Motor vehicle imports reached US$ 1.5 Bn in the first seven months (US$ 241 Mn in July). Terms of trade deteriorated as import prices outpaced export prices. • Services & Remittances: The services surplus fell 22.4% YoY to US$ 1.8 Bn for Jan-July. Tourism earnings dropped 11.5% YoY to US$ 1.8 Bn amid a 1.7% YoY dip in July arrivals. However, workers' remittances grew 21.4% YoY to US$ 5.4 Bn during the 7-month period. • Reserves & Currency: Gross official reserves edged up to US$ 6.6 Bn by end-July. YTD net foreign inflows to government securities stood at US$ 159.4 Mn in July. The Sri Lankan Rupee depreciated 5.5% against the US Dollar by end-August, though policy measures helped ease recent pressure.