FX.co ★ Sri Lanka Trade Deficit Widens in August

Sri Lanka’s trade deficit widened to $674 million in August 2026, up from $414 million in August 2025, as imports rose 12.8% year-on-year to $1.91 billion, while exports declined 3.3% to $1.24 billion. Over the first eight months of 2026, the cumulative trade deficit expanded to $7.2 billion, compared with $4.3 billion in the same period of 2025, driven by a 24.1% surge in imports to $16.56 billion. The sharp increase in imports was largely attributable to a 61.6% jump in fuel purchases, which climbed to $4.0 billion amid rising energy prices linked to the US-Iran war. Motor vehicle imports during this period totaled $1.68 billion. By contrast, exports grew at a much slower rate, edging up 3.3% to $9.38 billion.