Reversing the declining trend observed during the last two months, earnings from exports increased by 9.8 per cent (year-on-year) in March 2017. However, the trade deficit widened in March 2017 compared to the corresponding month of 2016 as the increase in export earnings was offset by the higher increase in import expenditure. Tourist earnings declined in March 2017, as in the previous month, with the partial closure of the Bandaranaike International Airport (BIA) for resurfacing of the runway. Meanwhile, workers’ remittances also recorded a decline in March 2017. In the financial account, foreign inflows to the Colombo Stock Exchange (CSE) continued to record a net inflow while a reversal of trend in net outflows by foreign investors was observed in the government securities market with marginal net inflows during the month. Financial account of the Balance of Payments (BOP) further improved in subsequent months, with the continuation of the above inflows, and also as a result of the receipt of the proceeds of the International Sovereign Bond and the syndicated loan to the government, thus helping to stabilise the external sector.
Tuesday, June 6, 2017