The external sector performance improved in July 2016 with a reduction of the trade deficit, increased tourist earnings and higher inflows to the financial account. The trade deficit contracted in July, due to the reduction in imports which outweighed the reduction in exports. Tourist earnings increased while workers’ remittances declined during the month compared to the corresponding period of the previous year. Inflows to the financial account strengthened with the proceeds of US dollars 1,500 million from the issuance of the 10th international sovereign bond, US dollars 300 million from the Syndicated Loan facility and net inflows recorded in the government securities market and the Colombo Stock Exchange (CSE), easing the pressure on the Balance of Payments.
Monday, October 17, 2016