Sri Lanka’s BOP records deficit of US $ 695.5mn: Central Bank

Mar 24, 2015 (LBO) – Sri Lanka’s Central Bank said the Island reported a Balance of Payment or BOP deficit of 695.5 million US dollars in 2014 compared to a surplus of 732.9 million US dollars, a year earlier.

Worker’s remittances declined 5.8 per cent to 523.5 million US dollars in January 2015 from a year earlier.
The CB said, this decline was registered after a record-high inflow of 708.8 million US dollars in December 2014.

“However, workers’ remittances are expected to increase during the New Year festival season.”

Sri Lanka’s exports grew by 10 percent to 11.4 billion dollars in 2014 and imports were up 7.8 percent to 19.4 billion US dollars in 2014. The trade deficit increase by 4.7 percent to 8 billion US dollars in 2014 from 7.6 billion US dollars in 2013.

Tourism reported 35 percent growth to 2,300 million US dollars. Earnings from ICT sector recorded 823 million US dollars up from 719 million US dollars. Earnings from Transportation services were recorded 1,956 million US dollars in 2014 from 1,784 million dollars in 2013.

Other services were up 2 percent to 481 million dollars.

Foreign direct investment were 1,900 million US dollars in 2014.

Meanwhile, long term loans obtained by the government during January 2015 amounted to 57.7 million US dollars, compared to 112.2 million US dollars during the corresponding period in 2014, the Central Bank said.

“Government investments in government securities market registered an outflow of 12.8 million US dollars, on a net basis, by 13th March 2015.”

Further, foreign investments in secondary market in the Colombo Stock Exchange (CSE) recorded a net inflow of US dollars 19.6 million by 13th March 2015.

Sri Lanka’s gross official reserves are estimated to be 7.4 billion US dollars as at end February 2015 with gross official reserves equivalent to 4.5 months of imports.