Sri Lanka’s export earnings grew by 12.9% from January – July: Central Bank of Sri Lanka
Sri Lanka’s earnings from exports increased in July 2022, while import expenditure declined for the fifth consecutive month on a year-on-year basis, the Central Bank of Sri Lanka (CBSL) said.
The notable decline in import expenditure in July 2022 reflected the impact of overall moderation of activity amidst forex liquidity strains in the banking system, while the policy measures to curtail non-urgent import expenditure also helped to contain import demand pressures.
As a result, the trade deficit recorded a notable contraction in July 2022 over the year, thereby easing stresses in the domestic foreign exchange market. Workers’ remittances increased marginally in July 2022, compared to June 2022, and remained in excess of the trade deficit, thereby supporting the forex liquidity conditions under severe balance of payments pressures.
Earnings from tourism recorded an increase in July 2022 (year-on-year) on the low base. Foreign investment in the government securities market and the Colombo Stock Exchange (CSE) recorded a marginal net inflow during July 2022.
CBSL continued to provide forex liquidity to finance essential imports, exhausting the usable level of gross official reserves. Meanwhile, the weighted average spot exchange rate in the interbank market remained around Rs. 361 per US dollar during the month.
- ADB approves $350 Million for Sri Lanka economic stabilization programme May 29, 2023
- Ven. Rajangane Saddharathana Thera arrested May 29, 2023
- Nathasha Edirisooriya remanded till June 7 May 28, 2023
- Fuel quota to be increased from Tuesday May 28, 2023
- India did more for Sri Lanka than IMF – Jaishankar May 28, 2023
- Sri Lanka to Issue digital birth certificates May 28, 2023
- Nathasha Edirisooriya arrested over remarks on Buddhism May 28, 2023
I think SL should think outside the box and calculate the interest we would be paying the IMF by the time we settle the debt. Then decide how much more above the standard exchange rates we can pay to Sri Lankans (or anybody else) sending Euros, US$, sterling pounds and Yens to SL. That way, more Sri lankans will start sending money via proper banks and also may be the the other investors too. It is up to the government to put measures in place the money will not be taking out of the country immediately after. SL government should think of such measures seriously since that allow to borrow less than we need at the moment.
…. the amount that will be paid above the standard exchange rate to the Sri Lankans sending the money home or whoever not going to be taking the money out of the country still worth since that extra amount still will stay within the country contributing to the development, unlike the interest going to be paid to the IMF sending it out of the country.