Sri Lanka’s external sector showed a modest performance during the month of February 2016 as the trade deficit contracted and foreign currency inflows in the form of tourist earnings and workers’ remittances continued to record a steady pace of growth. Despite the decline in earnings from exports during the month, the larger decline in expenditure on fuel imports, food and beverages and transport equipment resulted in the contraction of the trade deficit. However, the government securities market and the Colombo Stock Exchange recorded net outflows during the period.
