Sri Lanka’s deficit in the merchandise trade account continued to soften on a monthly basis as the earnings from exports rose faster than what the country expensed for imported goods in June. The country sent goods worth US$ 1,077 million in June, bringing down goods valued at US$ 1,447.0 million resulting in a deficit in the trade account of the Balance of Payment (BOP) of US$ 370.0 million. Exports were up 6.5 percent, imports were up 3.0 percent from a month ago resulting in a 5.9 percent lower deficit in the trade account. In May, the deficit was US$ 393.0 million, which was also down sharply from US$ 558 million in April. From a year ago levels too, the June exports were up 7.2 percent, imports by 5.7 percent resulting in a 1.7 percent expansion in the deficit.On a cumulative basis, the deficit in the trade account expanded in the six months to US$ 2,540 million, 11 percent higher from the same period last year. The high deficit is typical for Sri Lanka, which is largely dependent on imported goods, specially for its energy needs and for many other inputs for other products it manufactures for domestic consumption and exports. Gradually rising imports and hence the deficit are an indication that the economy in the country is returning to normality after runaway inflation, foreign exchange shortage, sharply raised taxes and interest rates that plunged the economy into a deep recession in 2022 and 2023, causing its actors to cut both production and consumption drastically. (ICE NEW DELHI)

Fonte notizia: The Daily Mirror