COLOMBO (News 1st) – The Central Bank of Sri Lanka said that earnings from merchandise exports declined in October 2022, on a year-on-year basis, for the first time since March 2022, mainly due to lower earnings from garments exports.
The decline in import expenditure continued in October 2022, (y-o-y), for the eighth consecutive month, despite recording an increase, compared to September 2022.The merchandise trade deficit recorded a notable contraction in October 2022, compared to the previous year.
Meanwhile, the workers’ remittances steadied and earnings from tourism improved in October 2022, whereby earnings from tourism crossed over USD 1 bn during January-October 2022, while workers’ remittances reached about USD 3 bn during January-October 2022.Foreign investment in the government securities market and the Colombo Stock Exchange (CSE) recorded a marginal net inflow during October 2022.
The Central Bank continued to provide forex requirement to finance essential imports, exhausting the liquid level of gross official reserves.