FX.co ★ Sri Lanka Trade Gap Widens on Surging Imports

In June 2025, Sri Lanka experienced a significant widening of its trade deficit, which expanded to USD 540.3 million compared to USD 369.6 million recorded during the same period in the previous year. This expansion was largely attributed to a 16.3% increase in imports, resulting in a total import value of USD 1.68 billion. Notably, the rise in consumer goods imports was substantial, with personal vehicles soaring by 2103.9%, telecom devices by 159.1%, household and furniture items by 106.2%, and food and beverages by 212.4%. Specifically, vehicle imports amounted to USD 163 million in June alone, bringing the total vehicle imports for the first half of 2025 to USD 475 million. On the export front, growth was more modest, with an increase of 6% to USD 1.14 billion. This was primarily driven by higher shipments in the industrial sector, which grew by 6.4%, and the agricultural sector, which saw a 5.5% increase. In contrast, mineral exports experienced a decline of 29%.