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SL trade deficit widens in February with exports of  over US$1 billion

Sri Lanka recorded practically a billion-dollar deficit within the commerce account of the steadiness of cost within the month of  February 2022, because the imports continued to run stronger whereas merchandise exports recorded its eighth consecutive month of over a billion-dollar earnings,the  Central Financial institution introduced. 

The cumulative deficit within the commerce account throughout January to February 2022 widened to US {dollars} 1,640 million from US {dollars} 1,227 million recorded over the identical interval in 2021.

The ratio of the value of exports to the value of imports, deteriorated by 10.7 per cent in February 2022, in comparison with February 2021, as the rise in import costs surpassed the rise in export costs.forces past the anticipated stage of depreciation within the measured adjustment.

The deficit within the commerce account widened to US {dollars} 781 million in February 2022, in comparison with the deficit of US {dollars} 572 million recorded in February 2021. 

Nevertheless, on a monthon-month foundation, the commerce deficit declined in February 2022 from US {dollars} 859 million recorded in January 2022. 

Earnings from merchandise exports in February 2022 grew by 14.7 per cent over February 2021, recording at US {dollars} 1,092 million. 

A rise in earnings was noticed in industrial exports and mineral exports, whereas a lower was noticed in agricultural exports. 

The cumulative export earnings, which elevated by 16.1 per cent throughout January-February 2022 over the identical interval of the final yr, amounted to US {dollars} 2,192 million

General imports: Expenditure on merchandise imports elevated by 22.9 per cent to US {dollars} 1,873 million in February 2022, in comparison with US {dollars} 1,524 million recorded in February 2021, whereas recording a decline, in comparison with December 2021 and January 2022. 

A rise in expenditure was noticed throughout all important classes, with intermediate items imports contributing primarily to the growth. 

On a cumulative foundation, whole import expenditure amounted to US {dollars} 3,832 million through the interval from January to February 2022, recording a rise of 23.0 per cent, in comparison with US {dollars} 3,115 million recorded within the corresponding interval in 2021. 

. Vacationer arrivals confirmed a notable restoration in February 2022 over the identical month within the earlier yr. Employees’ remittances continued to reasonable in February 2022. International funding within the Colombo Inventory Change (CSE) recorded a internet influx through the month. 

The weighted common spot trade charge within the interbank market hovered round Rs. 202 per US greenback throughout February 2022. 

Nevertheless, the Central Financial institution allowed a measured adjustment within the trade charge within the first week of March 2022, in view of the heightened pressures on the trade charge amidst subdued liquidity within the home international trade market, leading to an overshoot subsequently by market Commerce Stability. 

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