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4 percent to 794.4 million US dollars in July 2012 from a year earlier, imports fell 24.
9 percent to 1,329.1 million US dollars and the trade gap fell 33.88 percent to 534.6 million US dollars, the Central Bank said.
Sri Lanka's exports were contracting due to lower external demand from Europe, lower commodity prices, while imports were falling due to tightening measures taken by authorities the monetary authority said. A trade contraction points to an economic slowdown.
Agricultural exports fell 11.8 percent to 192.3 million US dollars with tea exports falling 12.
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6 percent to 112.8 million US dollars.
Apparel exports fell 14.4 percent to 328.2 million US dollars and rubber exports also fell 14.4 percent to 69.1 million dollars.
Consumer goods imports fell 20.9 percent to 237.4 million US dollars. Intermediate goods fell 27.4 percent to 780.8 million US dollars with petroleum falling 53 percent to 211.1 million US dollars.
Investment goods fell 20.6 percent to 308.4 million US dollars.
Sri Lanka's trade deficit in July contracted 33.8 percent to 534.6 million US dollars.
In 2011 Sri Lanka's imports went to unsustainable levels due to credit taken to manipulate energy prices and large v