Imports surge while exports slow from March highs, widening the trade gap
Sri Lanka’s trade deficit widened significantly in April 2025, nearly doubling compared to the previous month, as import growth outpaced exports. According to the Central Bank, the deficit rose to $717 million in April, up from $396 million in March — an increase of more than 80% month-on-month. This figure also marked a notable year-on-year rise from the $558 million deficit recorded in April 2024.
Exports in April stood at $968 million, reflecting a 10.4% year-on-year increase. However, this was a decline from March’s performance of $1.24 billion, which had marked an 8% year-on-year rise. Imports, on the other hand, reached $1.68 billion in April, up 17.5% year-on-year, and slightly higher than the $1.63 billion recorded in March.
For the first four months of 2025, Sri Lanka’s cumulative trade deficit reached $2.25 billion. During the same period, export earnings grew by 6.4% year-on-year to $4.3 billion, mainly driven by increased earnings from textiles and garments, spices, food, beverages and tobacco, and chemical products. Meanwhile, import expenditure climbed by 12.7% year-on-year to $6.57 billion, fuelled by sharp increases in machinery and equipment, personal vehicles, oils and fats, transport equipment, and sugar and confectionery.
The export unit value index fell by 1% year-on-year in April due to lower prices for industrial goods, while the import unit value index declined by 3.8% due to falling prices of intermediate goods. These price movements led to an improvement in the terms of trade, which rose by 3% year-on-year to 78.7 index points in April 2025.