Foreign sector inflows stable - Central Bank report

The Central Bank announced that Sri Lanka’s external sector remained stable with continued inflows being recorded in the balance of payments.

The Bank said that the cumulative foreign inflows to the country in the form of earnings from tourism, workers’ remittances, foreign direct investments (FDI) and investments in Government securities showed a noteworthy growth during the first half of 2013.

It said that commercial banks and the corporate sector have also been able to raise more foreign funds this year, given the stable macroeconomic environment and further relaxation of exchange control regulations. The trade balance also continued to narrow with exports recording an increase on a year-on-year basis in June 2013.

The Bank's ‘External Sector Performance-June 2013’ report released yesterday said that both earnings from exports and expenditure on imports have recorded a significant growth on a year-on-year basis in June 2013.

The report says that earnings from exports grew by 6.8 per cent in June 2013 to US dollars 807 million, and expenditure on imports increased by 15.3 per cent to US dollars 1,636 million. The report says that however, on a cumulative basis, earnings from exports as well as expenditure on imports continued to decline by June. While earnings from exports during the first half of 2013 declined by 4.5 per cent, expenditure on imports during this period declined by 5.8 per cent. It says that as a result, the deficit in the trade account for the first six months of 2013 declined by 7.1 per cent to US dollars 4,557 million.(niz)

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