Sri Lanka’s exports fell below USD 1Bn in February, while the cumulative trade deficit fell by 73% as a result of a massive contraction of imports. The country has spent only USD 1.021 Bn for imports and received 0.982 Bn in exports. The trade deficit in the first two months of 2023 was only USD 449 Mn, whereas it was USD 1,636 Mn in the first two months of 2022.
The average imports of the last three months were USD 1,419Mn and exports were USD 1,013Mn. The substantial reduction of imports in February has saved close to 370Mn. This would have prompted the creation of excess FX liquidity in the market.