Current account balance more than doubles MoM in February

Monday, 31 March 2025 00:00 - - {{hitsCtrl.values.hits}}

The country’s current account balance more than doubled in February to $ 359 million month-on-month (MoM) from January, though year-on-year (YoY) it was lower.

In January 2025, the balance was $ 130.2 million, reflecting February 2025 performance was higher by 176%, whilst in February last year, it was $ 395 million.

The Central Bank said the higher surplus in February was mainly driven by a narrowed trade deficit.

The merchandise trade deficit contracted in February 2025 to $ 411.3 million compared to $ 732.7 million in January 2025. However, the trade deficit widened compared to February 2024.

In February 2025, exports amounted to $ 1.05 billion, down by 0.6%, and imports rose by 6.2% to $ 1.46 billion.

The terms of trade deteriorated in February 2025, as the decline in export prices outpaced the decline in import prices. In contrast, volumes of both exports and imports increased.

Services inflows rose by 7.4% to $ 664.5 in February whilst outflows rose by 9% to $ 256.1 million. However, inflows were lower than $ 705.7 million in January but outflows were lower than $ 287.4 million.

Earnings from tourism in February 2025 were estimated at $ 368 million in comparison to the estimate of $ 401 million for the previous month. This drop is in line with the seasonal pattern of tourist arrivals.

Workers’ remittances increased to $ 548 million during February 2025 compared to $ 476 million in February 2024. In January 2025, remittances were $ 573 million.

Foreign investments in the Government securities market recorded a modest net inflow, while foreign investments in the Colombo Stock Exchange (CSE) (considering both primary and secondary markets) recorded a marginal net outflow during the month.

Gross official reserves (GOR) in February 2025 stood at levels broadly similar to January 2025 at $ 6.1 billion. GOR includes the swap facility with the People’s Bank of China (PBOC).

The Sri Lankan Rupee depreciated by 1.3% during the year up to end March 2025.