Sri Lanka’s import expenditure jumped to USD 1.83 billion in February, a 25.2% increase from the same month last year, as export growth remained nearly flat, raising concerns over the country’s trade balance.

According to First Capital Research, all major import categories recorded growth during the month.

Consumer goods led the surge at 35.7% year-on-year, followed by investment goods at 33.3% and intermediate goods at 18.3%.

Within consumer goods, non-food imports driven largely by vehicle purchases more than doubled, rising 107% year-on-year.

Food and beverage imports, however, fell 18.7% over the same period.

Meanwhile, total export earnings in February stood at USD 1.06 billion, growing just 0.5% from a year earlier.

The modest overall gain was propped up by a sharp 142.7% rise in mineral and other exports and a 1.5% increase in agricultural exports.

Industrial exports, which form the backbone of Sri Lanka’s export sector, slipped 0.1% year-on-year.

Transport equipment fell 28.2%, ceramic products dropped 16.5% and textiles and garment contracted by 9.9%. Gains in machinery, chemical products and base metals were not enough to offset those losses.

Agricultural exports reached USD 232.7 million, continuing a gradual recovery following an 18.8% rebound in January after disruptions caused by Cyclone Ditwah.

Source- The Leader