The external current account recorded a deficit of US$ 128 million in September 2026, following the surplus recorded in August 2026. However, the deficit was lower than in September 2025, as the lower trade deficit and higher inflows of workers’ remittances outweighed the higher primary income deficit and the lower surplus in the services account. The current account recorded a cumulative deficit of US$ 420 million during January–September 2026.
The merchandise trade deficit narrowed in September 2026 compared to September 2025, as the increase in export earnings exceeded the increase in import expenditure. However, the cumulative trade deficit widened to US$ 7.9 billion during January–September 2026, compared to US$ 5.2 billion in the corresponding period of 2025.
The merchandise export earnings increased by 21.0% (year-on-year) to US$ 1,377 million in September 2026, recording the highest monthly export earnings in history and surpassing the previous peak of US$ 1,302 million recorded in July 2025.
Meanwhile, expenditure on merchandise imports increased by 2.9% (year-on-year), reaching US$ 2,109 million in September 2026.
Monthly expenditure on fuel imports declined for the fifth consecutive month (month-on-month) in September 2026. However, cumulative fuel import expenditure increased by 51.5% (year-on-year) to approximately US$ 4.5 billion during January–September 2026.
Expenditure on motor vehicle imports, including both personal and commercial vehicles, amounted to US$ 188 million in September 2026, representing a 34.4% decline compared to September 2025. Meanwhile, cumulative expenditure on motor vehicle imports amounted to US$ 1,871 million during January–September 2026.
The terms of trade deteriorated year-on-year in September 2026, as import prices increased at a faster pace than export prices. The terms of trade also deteriorated during January–September 2026 compared to the corresponding period of 2025.
The surplus in the services account declined by 34.3% to US$ 119 million in September 2026 on year-on-year basis, as the increase in services related outflows, particularly travel and air transport payments, outpaced the growth in services inflows. With the continued moderation in the monthly services account surplus, the cumulative services account surplus declined by 22.3% to US$ 2.2 billion during January-September 2026 on a year-on-year basis.
Tourist arrivals declined marginally by 0.3% (year-on-year) in September 2026. Total arrivals during January–September 2026 declined by 1.8%, compared to the corresponding period of 2025. Meanwhile, tourism earnings were estimated at US$ 186 million in September 2026, reflecting a 1.5% increase from a year earlier. Cumulative tourism earnings during January–September 2026 declined by 9.2% to US$ 2.2 billion, compared to the corresponding period of 2025.
The deficit in the primary income account increased to US$ 241 million in September 2026 from US$ 152 million in September 2025, mainly due to the higher dividend payments on direct investment. However, the cumulative primary income deficit during January–September 2026 remained lower compared to the corresponding period of 2025.
Workers’ remittances increased by 5.6% (year-on-year) to US$ 734 million in September 2026. Consequently, cumulative remittances during January-September 2026 increased by 18.1% on year-on-year basis to US$ 6.9 billion.
Foreign investment in the government securities market recorded a net outflow of US$ 39.9 million, while foreign investment in the Colombo Stock Exchange (CSE), including both primary and secondary market transactions, recorded a net outflow of US$ 4.7 million during September 2026.
Gross official reserves (GOR) by end September 2026, including the swap facility with the People’s Bank of China (PBOC), stood at US$ 6.9 billion.
By end October 2026, the Sri Lanka rupee depreciated by 6.8% against the US dollar on a year-to-date basis.
