Sri Lanka’s traded deficit touched US$ 1.12 billion by June, up from US$ 700 a year ago on higher imports of industrial goods and a hot fuel bill. Sri Lanka’s traded deficit touched US$ 1.12 billion by June, up from US$ 700 a year ago on higher imports of industrial goods and a hot fuel bill. The import bill rose 21 percent to US$ 3.7 billion, from US$ 3.1 billion in 2003.
Demand from the construction and garment industries were the key elements that tipped the scale in June, but Central Bank says the rise should be look at positively as it would contribute to further growth in exports and the industrial sector.
Expenditure on textile imports, which amounted to US dollar 150 million in June 2004, was the highest value since May, 2000.
“Increased textile imports signal the potential for higher exports in the following months,” the Central Bank said.
The Central Bank also said that sweet-toothed Sri Lanka’s sugar imports went up 81 percent in June.
Higher fertilizer prices in the world market did not slow demand from local farmers as imports increased 67 percent responding to domestic price reduction.