Vehicle import surge pushes September current account into deficit
Sri Lanka’s external sector performance weakened in September 2025, with the country slipping into a monthly current account deficit after maintaining surpluses for eight straight months.
However, the cumulative current account for the first nine months of the year remained in positive territory, with a surplus estimated at US$ 1.9 billion, according to data released by the Central Bank of Sri Lanka.
The trade balance widened during the month as import expenditure crossed the US$ 2 billion mark, largely driven by a sharp increase in vehicle imports.
In the services sector, net inflows edged up to US$ 2.8 billion during the nine months to September. Tourist arrivals recorded a notable increase compared to the same period last year, although growth in tourism earnings remained moderate on both monthly and cumulative bases.
Workers’ remittances continued to show resilience, sustaining the positive momentum seen in recent months. Cumulatively, inflows grew 20 percent year-on-year during the first nine months of 2025.
Foreign investor sentiment remained mixed. The government securities market attracted a net inflow, while the Colombo Stock Exchange saw net foreign outflows across both primary and secondary markets.
Gross official reserves, including the swap facility with the People’s Bank of China, held steady at around US$ 6.2 billion by end-September, even after meeting external debt obligations. The Sri Lankan rupee meanwhile, depreciated by 3.9 percent against the US dollar during the ten months ending October 2025.
