Sri Lanka’s trade deficit has widened to USD 717.5 million in April 2025, marking a notable year-on-year increase from USD 557.7 million recorded in April 2024, according to the latest report released by the Central Bank of Sri Lanka (CBSL).
The widening gap was primarily attributed to a sharp uptick in merchandise imports, which outpaced the growth in export earnings during the month. Import expenditure rose by 17.5%, while exports registered a comparatively modest increase of 10.4%.
A key driver of the surge in imports was the significant rebound in motor vehicle imports. According to the CBSL, Sri Lanka imported motor vehicles worth USD 134 million in April 2025, a considerable increase and a major factor in the overall expansion of the trade deficit.
Economists warn that the widening trade deficit could put renewed pressure on the country’s balance of payments, especially as the Central Bank works to maintain foreign reserve buffers and meet external debt obligations under the ongoing IMF-supported programme.
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