Pulse of Paradise : Economy and Markets

🌍 𝐒𝐫𝐢 𝐋𝐚𝐧𝐤𝐚'𝐬 𝐄𝐱𝐭𝐞𝐫𝐧𝐚𝐥 𝐒𝐞𝐜𝐭𝐨𝐫 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 – 𝐉𝐮𝐧𝐞 𝟐𝟎𝟐𝟔

Sri Lanka’s external sector continued to reflect the impact of developments in the Middle East, with the current account recording its third consecutive monthly deficit.

Key highlights:

📊 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐚𝐜𝐜𝐨𝐮𝐧𝐭 deficit stood at US$ 149 mn in June 2026.

📦 Cumulative 𝐭𝐫𝐚𝐝𝐞 𝐝𝐞𝐟𝐢𝐜𝐢𝐭 widened to US$ 5.5 bn during the first half of 2026, as import expenditure outpaced export earnings.

⛽ 𝐅𝐮𝐞𝐥 𝐢𝐦𝐩𝐨𝐫𝐭 𝐞𝐱𝐩𝐞𝐧𝐝𝐢𝐭𝐮𝐫𝐞 moderated from recent peaks, while motor vehicle import expenditure declined compared to the previous month.

🏝️ 𝐓𝐨𝐮𝐫𝐢𝐬𝐭 𝐚𝐫𝐫𝐢𝐯𝐚𝐥𝐬 declined amid continued regional tensions, with tourism earnings estimated at US$ 151 mn in June 2026.

💸 𝐖𝐨𝐫𝐤𝐞𝐫𝐬’ 𝐫𝐞𝐦𝐢𝐭𝐭𝐚𝐧𝐜𝐞𝐬 remained resilient, increasing by 9.3% (y-o-y) to US$ 695 mn in June, with cumulative inflows reaching US$ 4.6 bn during the first half of 2026.

📈 The 𝐠𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐦𝐚𝐫𝐤𝐞𝐭 recorded a net foreign inflow during the month.

💰 𝐆𝐫𝐨𝐬𝐬 𝐎𝐟𝐟𝐢𝐜𝐢𝐚𝐥 𝐑𝐞𝐬𝐞𝐫𝐯𝐞𝐬 stood at US$ 6.5 bn at end June 2026, despite sizeable external debt service payments.

💱 𝐓𝐡𝐞 𝐒𝐫𝐢 𝐋𝐚𝐧𝐤𝐚 𝐫𝐮𝐩𝐞𝐞 𝐝𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐞𝐝 by 7.8% against the US dollar on a year-to-date basis by end July 2026, with exchange rate volatility easing following recent policy measures.

Read the full report: https://www.cbsl.gov.lk/en/news/external-sector-performance-june-2026