The trade deficit continued to remain modest in March 2023, compared to a year ago, though it widened notably compared to February 2023
Workers’ remittances and earnings from tourism recorded a notable improvement in March 2023
The exchange rate appreciated notably in March 2023 supported by improved market sentiments towards the finalisation of the IMF-EFF arrangement and improvements in liquidity conditions in the domestic foreign exchange market driven by policy relaxation allowed by the Central Bank
Foreign investors have shown increased appetite for government securities, while net foreign investments to the Colombo Stock Exchange (CSE) recorded a marginal net outflow during March 2023
These developments reinforced gross official reserves by end March 2023