COLOMBO: Sri Lanka's Central Bank on Friday said the country's trade deficit in December 2021 had widened to $1.09 billion from $562 million a year ago, as monthly import expenditure hit a record high.
Sri Lanka is facing its worst financial crisis in years with its foreign exchange reserves dropping to $2.36 billion in January.
The country needs to repay about $4 billion in debt this year, including a $1 billion international sovereign bond maturing in July.
The island nation's exports rose 19.9% year on year to $1.16 billion in December 2021, while imports increased by 46.8% to $2.24 billion during the same period, the central bank said.
"The deficit in the trade account widened in December 2021 compared to a year earlier, mainly due to excessive surge in imports recording the highest ever monthly import expenditure." the central bank said in a statement.
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Sri Lankan exports exceeded $1 billion for the seventh consecutive month in December 2021, with tourists arrival continuing to grow and workers' remittances also increasing month-on-month, the central bank said.
Tourism and remittances are a major source of foreign exchange for the island nation of 22 million people.
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