The external sector recorded a modest performance during August 2016 amidst the widening of the trade deficit while inflows from tourism and workers’ remittances grew at a healthy rate. Although exports recorded a considerable growth during August 2016, imports also grew resulting in a widening of the trade deficit. However, earnings from tourism and workers’ remittances grew, cushioning the impact of the trade deficit. Meanwhile, inflows to the financial account were supported by foreign investments to the government securities market and the Colombo Stock Exchange (CSE) and long-term loan inflows to the government in August 2016.

FULL TEXT