Sri Lanka’s external sector demonstrated a modest performance in May 2018. The deficit in the trade account continued to expand at a comparatively slower rate in May 2018, as export growth outpaced import growth. Tourist earnings continued to increase while workers’ remittances declined during the month. Inflows to the financial account of the balance of payments (BOP) moderated with net outflows from the government securities market and a reduction in net inflows to the Colombo Stock Exchange (CSE). The country’s level of gross official reserves at the end May 2018, stood at US dollars 8.8 billion. Meanwhile, reflecting the developments in the domestic and global foreign exchange markets, the Sri Lankan rupee depreciated by 3.3 per cent against the US dollar by end May 2018 and by 4.5 per cent so far during the year up to 20 July 2018.