External sector posts modest performance in Oct.

The Central Bank said on Friday the external sector recorded a modest performance in October 2016 with deterioration in the trade deficit amidst continued growth in tourist earnings. 

The trade deficit widened in October as a result of higher import expenditure (up 16.4%) and marginal growth (up by 0.9%) in export earnings. The significant increase in import expenditure in October 2016 was primarily due to the import of a dredger vessel for the Port City construction project. 

Workers’ remittances were marginally higher while a healthy growth was observed in earnings from tourism during October 2016. 

Although inflows to the Colombo Stock Exchange (CSE) and long-term loan proceeds to the Government supported the financial account of the Balance of Payments (BOP), the Government securities market witnessed a net outflow during October 2016.

See full report: http://www.ft.lk/article/596167/External-sector-performance-turns-modest-in-October-2016