Sri Lanka’s trade deficit has widened to USD 717.5 million in April this year, driven primarily by a sharp increase in motor vehicle imports, according to the latest report released by the Central Bank.
In comparison, the trade deficit in April 2024 stood at USD 557.7 million.
The report states that the increase in the trade deficit was caused by a faster rise in merchandise import expenditure compared to the growth in export earnings. While export earnings grew by 10.4%, import expenditure surged by 17.5% in April 2025.A significant contributor to this increase was motor vehicle imports, which rose to USD 134 million during the month, the report added.
By Shyam Nuwan Ganewatte 