Lankan imports jump 25% as export growth remains sluggish
Sri Lanka’s import bill in February climbed sharply to USD 1,833.8 million, recording a year-on-year increase of 25.2%, according to First Capital Research, raising concerns over a widening trade imbalance amid sluggish export performance.
All major import categories recorded increases during the month, with the consumer goods segment posting the highest growth at 35.7% year-on-year, followed by investment goods at 33.3% and intermediate goods at 18.3%. Within consumer goods, non-food imports, largely driven by vehicle imports, surged by 107.0% year-on-year, while food and beverage imports declined by 18.7% during the period under review.
Meanwhile, exports in February stood at USD 1,057.8 million, reflecting only a marginal 0.5% year-on-year increase, highlighting weak external sector momentum. Growth was primarily supported by a sharp 142.7% year-on-year increase in mineral and other exports, along with a modest 1.5% rise in agricultural exports.
However, industrial exports, which form a key component of Sri Lanka’s export base, recorded a slight decline of 0.1% year-on-year. Within this segment, transport equipment (-28.2%), ceramic products (-16.5%) and textiles and garments (-9.9%) registered notable contractions, underscoring ongoing pressures in key export industries.
Although some sub-sectors such as machinery and mechanical appliances (+42.7%), chemical products (+41.9%) and base metals and articles (+28.9%) showed strong growth, these gains were insufficient to offset broader weaknesses in the industrial export segment.
Agricultural exports reached USD 232.7 million, marking a modest 1.5% year-on-year increase, continuing the recovery following the 18.8% rebound recorded in January after the impact of Cyclone Ditwah.
Overall, the sharp rise in imports coupled with subdued export growth signals increasing pressure on Sri Lanka’s external sector and trade balance.
