Sri Lanka recorded an external current account deficit of USD 128 million in September 2026 as mounting import costs and reduced service earnings outweighed gains from record export performance.
Official data released by the Central Bank of Sri Lanka shows that the monthly slide pulled the cumulative current account deficit for the first nine months of the year to USD 420 million, reversing the brief surplus achieved in August 2026.
Despite the widening deficit, export earnings hit an all-time monthly record of USD 1,377 million in September, up 21 per cent year on year.
Import expenditure rose by 2.9 per cent to USD 2,109 million in September, though vehicle import spending fell by 34.4 per cent to USD 188 million.
On a cumulative basis, the nine-month trade gap expanded sharply to USD 7.9 billion, driven largely by a 51.5 per cent surge in fuel imports to USD 4.5 billion.
The overall terms of trade deteriorated as import prices outpaced export gains. Workers’ remittances offered strong support, rising 18.1 per cent to USD 6.9 billion across the nine-month period, while tourism earnings recorded a modest monthly uptick to USD 186 million despite a slight drop in overall arrivals.
Financial markets saw capital flight in September, with foreign investors withdrawing USD 39.9 million from government securities and USD 4.7 million from the Colombo Stock Exchange.
Meanwhile, gross official reserves stood at USD 6.9 billion at the end of September, while the Sri Lanka rupee depreciated by 6.8 per cent against the US dollar by late October.
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