Driven by strong remittance inflows and despite rising vehicle imports
Sri Lanka’s current account surplus surged past the $1 billion mark within the first four months of 2025, propelled by an 18% year-on-year (y-o-y) increase in worker remittances, according to the latest data released by the Central Bank.
In its April external sector report, the Central Bank confirmed that the country maintained a current account surplus for the fourth consecutive month, with April alone posting a surplus of $178 million.
However, the merchandise trade deficit widened in April when compared to both April 2024 and March 2025. This was attributed to a sharp rise in merchandise imports, which grew by 17.5% y-o-y, primarily driven by a notable increase in motor vehicle imports, which totaled $134 million. In contrast, merchandise exports rose by a relatively modest 10.4% y-o-y.
Despite the expanding trade gap, the overall current account performance remained robust. The total surplus recorded from January to April 2025 stood at $1.12 billion — a 40.3% increase compared to the same period in 2024.
Speaking at the May monetary policy review, Central Bank Governor Dr. Nandalal Weerasinghe expressed optimism that Sri Lanka is on track to register a current account surplus for the third consecutive year. This is despite the full relaxation of previous import restrictions. He projected the surplus to increase by 0.9% of GDP in 2025, citing favorable external conditions such as stable petroleum prices, steady export values, and continued strength in tourism and remittances.
Sri Lanka posted a current account surplus of $1.43 billion in 2023 and $1.31 billion in 2024, both achieved under a regime of tightened import controls.