Business News

CBSL says performance of the External Sector has developed

The Central Bank says the external sector performance improved in July this year with a reduction of the trade deficit, increased tourist earnings and higher inflows to the financial account. The inflows to the financial account strengthened with the proceeds of 1500 million dollars from the issuance of the 10th International Sovereign Bond, 300 million dollars from the Syndicated Loan facility and net inflows recorded in the government securities market and the Colombo Stock Exchange easing the pressure on the balance of payments.

Export earnings from tea dropped by 14.8 percent due to lower demand particularly from Russia and the Middle Eastern countries. However tea exports to Iran increased in comparison to July last year. Earnings from sea food exports to the European Union grew by nearly 20 percent as a result of the removal of the fish ban imposed by the EU on Sri Lanka. Earnings from textiles and garments exports, which account for around 48 percent of total export earnings, grew by 3 percent. Higher garment exports to the EU and non traditional markets such as Canada, China, Australia and the UAE resulted this development.