Sri Lanka's merchandise exports increased by 4.8 percent year-on-year in September, local media reported Tuesday, citing data from the Central Bank of Sri Lanka (CBSL). The merchandise exports grew by 4.8 percent to reach 1 billion U.S. dollars in September, while merchandise imports declined by 10.9 percent to 1.5 billion U.S. dollars, said the media report. Increase in the export of industrial goods such as personnel protective equipment (PPE), plastics, and rubber products offset the overall decline in apparel exports. The export of food, beverages, and tobacco products also noted a significant growth in September, with the value-added coconut products taking the lead in the food category. Meanwhile, remittances from migrant workers grew by 36.1 percent to 703 million U.S. dollars in September, marking the highest year-on-year growth since 2011.
Sri Lanka's cumulative trade deficit in the period from January to September narrowed down to 4.3 billion U.S. dollars, compared to 5.6 billion U.S. dollars a year earlier, according to the media report. "Sri Lanka's external sector recovered further in September 2020, supported by the continued improvement in the trade deficit, a notable increase in workers' remittances and the resultant stability in the domestic foreign exchange market," the CBSL said in a report published Monday. Sri Lanka's gross official reserves stood at 6.7 billion U.S. dollars at the end of September, enough to cover 4.7 months of imports.