Earnings from exports continued to decline for the twelfth consecutive month in February 2016 recording a 1.7 percent decline, year-on-year, to USD 887.7 million largely reflecting lower commodity prices in the international market.
The largest contribution to this decline was from the petroleum products exports, followed by gems, diamonds and jewelry and spices exports.
Continuing the year-on-year declining trend observed in the preceding seven months, expenditure on imports contracted by 5.9 percent, year-on-year, to USD 1.439 billion in February 2016. Significant decline recorded in expenditure on fuel imports followed by rice imports and vehicle imports.
On a cumulative basis, earnings from exports declined by 2.0 percent to USD 1.783 billion during the first two months of 2016 while expenditure on imports decreased by 5.7 percent to USD 3.028 billion, driven by fuel imports.
The cumulative trade deficit decreased by 10.5 percent to USD 1.246 billion in the first two months of 2016 from USD 1.391 billion in the corresponding period in 2015.
Tourist arrivals continued to expand, recording a growth of 22.8 percent in March 2016. Earnings from tourism for the month of February increased 19.4 percent to USD 327.7 million from USD 274.4 a year ago.
Workers' remittances grew by 8.3 percent to USD 554.2 million in February 2016 compared to USD 511.6 million in February 2015.
The government securities market continued to experience a net outflow in terms of foreign investments with a cumulative outflow of USD 572.3 million during the first three months of 2016 compared to an outflow of USD 15.4 million in the corresponding period of 2015.
In February 2016, the BOP is estimated to have recorded a deficit of USD 534 million, compared to the deficit of USD 692 million in the corresponding period of 2015.
Sri Lanka's gross official reserves as at end February 2016 amounted to USD 6.6 billion, equivalent to 4.2 months of imports while total foreign assets amounted to USD 8.5 billion, equivalent to 5.5 months of imports.
During 2016 up to 06 June, the rupee depreciated by 1.3 percent against the US dollar.
