Positive inflows recorded

Tuesday, 12 June 2012 01:01 - - {{hitsCtrl.values.hits}}

Tourist arrivals in April 2012 increased by nine per cent to 69,591, with arrivals during the first four months of 2012 amounting to 330,116, reflecting a growth of 18.3 per cent, according to the Central Bank.

Earnings from tourism in April 2012 grew at a healthy rate of 15.8 per cent to US$ 72 million compared to the corresponding month of 2011 and by 25.7 per cent during the first four months of 2012 to US$ 340 million.

Workers’ remittances amounted to US$ 475 million in April 2012, recording a year-on-year growth of 14.5 per cent compared to US$ 415 million in April 2011. Cumulative inflows on account of workers’ remittances amounted to US$ 1,968 million during the first four months of 2012, recording an increase of 16.6 per cent.

In relation to the Capital and Financial Account of the Balance of Payments (BOP), as per information available so far, inflows of FDI amounted to US$ 313 million by end May 2012.

“Portfolio investments to the Colombo Stock Exchange (CSE) also increased significantly to US dollars 182 million, on a net basis, by end May 2012. In addition, foreign inflows to commercial banks, both long-term and short-term, increased to US$ 1, 267 million by end May 2012. A significant increase has also been shown in foreign investments in Government securities, with net inflows to treasury bills and bonds recording US dollars 496 million by end May 2012.”

Further, net long-term inflows to the Government amounted to US dollars 176 million during the first quarter of 2012 while more inflows are expected to materialize during the latter part of the year.

In keeping with the above developments, by end April 2012, gross official reserves amounted to US$ 5,835 million, whereas total international reserves, which include gross official reserves and foreign assets of commercial banks amounted to US$ 7,258 million. In terms of months of imports, gross official reserves and total international reserves by end April 2012 were equivalent to 3.3 months and 4.2 months, respectively.