30.10.202613:36:47UTC+00Sri Lanka Trade Gap Narrows on Record Exports

Sri Lanka’s trade deficit narrowed to $731.3 million in September 2026, down from $910.1 million a year earlier. Exports jumped 21% year-on-year to $1.4 billion, marking a new record high and surpassing the previous peak of $1.3 billion set in July 2025. Imports edged up 2.9% to $2.1 billion, as fuel imports declined for the fifth consecutive month and motor vehicle imports fell 34.4% to $188 million.

Over the first nine months of 2026, however, the cumulative trade deficit widened to $7.9 billion, compared with $5.2 billion in the same period of 2025. This deterioration reflected a 21.3% surge in imports to $18.67 billion, driven primarily by a 51.5% increase in fuel purchases, which rose to $4.5 billion amid higher energy prices linked to the US–Iran war. Motor vehicle imports totaled $1.87 billion over the period. By contrast, export growth was modest, with exports rising 5.3% to $10.8 billion.