Sri Lanka current account surplus $133mn in Aug 2026 on lower import spend

ECONOMYNEXT – Sri Lanka recorded a 133 million US dollar surplus in its current account in August 2026, official data showed, following four months of deficits.

“The surplus was supported by the lower trade deficit compared to recent months, reflecting lower import expenditure,” the central bank said.

The current account recorded a deficit of 291 million dollars during January-August 2026, due to pressures on the external sector from the escalation of the conflict in West Asia.

The current account is a mirror image of the financial account (subject to errors and omissions).

The merchandise trade deficit widened in August 2026, year-on-year, due to higher import expenditure and lower export earnings.

The total trade deficit during January–August 2026 widened to 7.2 billion dollars, from 4.3 billion the previous year.

Total fuel import costs were around 4 billion dollars during January–August 2026, a 61.6 percent year-on-year increase.

Fuel import costs dropped for the fourth consecutive month in August 2026.

Motor vehicle import costs was 189 million dollars in August, a 24.2 percent drop from the same period last year.

Total motor vehicle imports during January–August 2026 was 1,684 million dollars.

“The terms of trade deteriorated on a year-on-year basis in August 2026, as import prices increased at a faster pace than export prices. Similarly, the terms of trade deteriorated during January–August 2026 compared to the corresponding period of 2025.”

The services account recorded a surplus of 220 million dollars in August, a 24.4 percent reduction from last August.

The total services account surplus during January-August 2026 fell 21.4 percent to 2.1 billion dollars, on a year-on-year basis.

Tourist arrivals fell 3.3 percent in the month compared to last August.

Total arrivals during January-August 2026 fell 2 percent, compared to the corresponding period of 2025.

Tourism earnings were estimated at 264 million dollars in August, a 2.1 percent increase from a year earlier.

But total tourism earnings during January-August 2026 fell 10 percent to 2.1 billion dollars, compared to 2025.

Workers’ remittances increased by 10 percent to 749 million in August and by 19.8 percent to 6.1 billion dollars during January-August.

Foreign investment in the government securities market saw a net inflow of 70.2 million dollars in the month.

Foreign investment in the Colombo Stock Exchange saw a net outflow of 58.1 million dollars.

Gross official reserves increased to 6.9 billion dollars by end August.

By end At the end of September, the rupee had depreciated by 6.3 percent against the US dollar on a year-to-date basis. (Colombo/Oct1/2026)