Economy

Sri Lanka’s export earnings surpass $10 billion in first half of 2026

Published

9 hours ago

August 2, 2026

Sri Lanka’s export earnings surpassed US$ 10 billion during the first six months of 2026, according to the Central Bank’s latest External Sector Performance report.

Export earnings increased by 3.3% year-on-year to US$ 10.4 billion during the first half of 2026, driven by growth in merchandise exports, which rose by 6.3% to US$ 6.9 billion despite a decline in services exports.

Despite the milestone in export earnings, the country’s merchandise trade deficit widened to US$ 5.5 billion during the first half of 2026, compared to US$ 3.3 billion in the corresponding period of 2025, as import expenditure increased at a faster pace than export earnings.

The Central Bank noted that the external current account recorded a deficit of US$ 245 million during the first half of 2026, compared to a surplus in the corresponding period of last year. June alone recorded a current account deficit of US$ 149 million, marking the third consecutive monthly deficit.

Fuel imports continued to exert pressure on the external sector, with cumulative expenditure on fuel imports rising by 58.8% year-on-year to approximately US$ 3,168 million during the first six months of the year.

Meanwhile, expenditure on motor vehicle imports amounted to US$ 1,254 million during the first half of 2026.

Economy

ADB extends $200 Mn loan to support Sri Lanka’s trade and industry

Published

2 days ago

August 1, 2026

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The Asian Development Bank (ADB) has announced a $200 million policy‑based loan to strengthen Sri Lanka’s economy amid pressures from the Middle East conflict.

ADB President Masato Kanda said the support aims to help the country “create jobs, attract investment, and expand trade,” noting that these measures will enable Sri Lanka to withstand current challenges and build resilience against future shocks.

The package includes $100 million in additional financing to help absorb immediate economic pressures, while backing reforms to modernize trade systems, enhance competitiveness of small and medium‑sized enterprises, and attract investment into economic zones.

According to ADB, the reforms will help enterprises expand, export, and integrate into regional and global value chains, supporting private sector‑led growth.

By diversifying exports and strengthening competitiveness, the program is expected to bolster resilience to external shocks and promote long‑term stability.

Economy

S&P Global Affirms Sri Lanka’s Sovereign Rating At ‘CCC+/C’ With Stable Outlook

Published

4 days ago

July 30, 2026

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According to S&P Global Ratings, Sri Lanka’s long- and short-term foreign and local currency sovereign credit ratings have been affirmed at ‘CCC+/C’ with a stable outlook, reflecting what the ratings agency described as the country’s economic resilience despite recent external shocks.

S&P said Sri Lanka’s economic recovery has been supported by strong revenue growth and proactive government measures in response to challenges, including Cyclone Ditwah and disruptions in Middle East energy markets.

According to the agency, real GDP growth reached 5.1% in the first quarter of 2026.

However, S&P noted that external pressures are increasing, with a higher import bill, currency depreciation, and rising energy costs contributing to inflationary pressures.

The agency said inflation had risen to 6.8%, while gross official reserves declined to USD 6.45 billion in June.

S&P forecasts that Sri Lanka’s economic growth will moderate to 3.8% this year, while the current account is expected to shift to a deficit of 1.7% of GDP amid mounting external challenges.

Economy

IFC and HSBC invest $40 Million to modernize Colombo Port

Published

7 days ago

July 27, 2026

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The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have announced a joint investment of up to $40 million in South Asia Gateway Terminals (Pvt) Ltd. (SAGT) to modernize and decarbonize operations at the Port of Colombo, Sri Lanka’s premier maritime gateway.

The financing aims to strengthen the port’s competitiveness, resilience, and sustainability, reinforcing its role as South Asia’s leading transshipment hub.

The package includes a sustainability‑linked loan of up to $20 million from IFC, with $8.57 million mobilized through IFC’s Managed Co‑Lending Portfolio Program (MCPP), alongside a parallel green loan of up to $20 million from HSBC.

Funds will be used to acquire advanced twin‑lift ship‑to‑shore cranes, boosting productivity, operational reliability, and energy efficiency to meet rising global trade demands.

This marks IFC’s first sustainability‑linked financing for infrastructure in Sri Lanka and its return to the port sector after two decades.

IFC first partnered with SAGT in 1999 to finance Sri Lanka’s first public‑private partnership container terminal, helping establish Colombo as a regional transshipment hub.