Sri Lanka’s external sector recorded a modest performance during November 2016. The revelation was made by the Central Bank adding, the trade deficit widened as a result of higher import expenditure amidst a decline in export earnings, albeit marginally, during the month of November 2016.

The significant increase in import expenditure in November 2016 was mainly due to the increase in expenditure on intermediate and investment goods. Earnings from tourism continued to record a healthy growth while workers’ remittances declined marginally during the month. The government securities market witnessed a net outflow in the month of November, while net inflows to the Colombo Stock Exchange and long term loan proceeds to the government supported the Balance of Payments in November 2016.