June 2024 External Sector Performance

The external sector remained positive in the first half of 2024, supported by increased workers’ remittances and higher earnings from tourism. However, the merchandise trade deficit widened year-over-year in June 2024, though it showed improvement compared to May. Services sector inflows, excluding tourism, reached USD 1,762 million from January to June 2024, up from USD 1,561 million in the same period in 2023.

Workers’ remittances increased to USD 3,144 million in the first half of 2024, compared to USD 2,823 million a year earlier. Tourism earnings also saw a significant rise, reaching USD 1,557 million in January–June 2024, a substantial increase from USD 875 million in the corresponding period of 2023. Meanwhile, foreign investment outflows continued from the government securities market in June.

Sri Lanka’s gross official reserves stood at USD 5.7 billion at the end of June 2024. The Sri Lankan rupee appreciated against the US dollar throughout the year up to June. Additionally, foreign investments in the Colombo Stock Exchange (CSE) recorded a net inflow in the first half of 2024, reflecting improved investor confidence.