External Sector Performance - August 2021

01st December 2021

Increased financial inflows bolstered Gross Official Reserves (GOR) during the month of August 2021, while merchandise exports exceeded US dollars 1.0 billion for the third consecutive month.

However, the increase of import expenditure outpaced the increase of export earnings, resulting in an expansion of the trade deficit, compared to a year earlier. Tourist arrivals gathered some momentum in August 2021, recording a notable increase over the previous month, although the numbers remained low. A moderation of workers' remittances was observed in August 2021. Sri Lanka received the allocation of Special Drawing Rights (SDR) from the International Monetary Fund (IMF) as part of the general SDR allocation in 2021. Further, initial disbursements under the bilateral currency swap arrangement between the Central Bank of Sri Lanka and the Bangladesh Bank were received during August 2021.

The average spot exchange rate in the interbank market remained broadly stable in August 2021, while pressures on the exchange rate were observed towards the end of the month, prompting the Central Bank to intervene in the foreign exchange market to stabilise the rupee.

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Guideline No 05 - Local chargers on Imports to Sri Lanka (PDF)

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