Sri Lanka trade deficit grows 2.6 pct despite import decline

Colombo, June 12 (Xinhua-ANI): Sri Lanka's trade deficit grew by 2.6 percent to 761 million U.S. dollars in April from 741.7 million dollars in the same month last year, showed the latest data released by the Central Bank on Tuesday.

Responding to the policy measures taken in the first quarter of 2012, expenditure on imports recorded its first full month decline in April 2012. Expenditure on imports recorded a year-on-year decline of 3.3 per cent to 1,441 million U.S. dollars in April 2012, for the first time in 25 months, the Central Bank said.

However, earnings from exports recorded a year-on-year decline of 9.2 per cent to 680 million U.S. dollars in April 2012 largely due to lower international market prices for several major export items.

"The trade deficit for the month of April 2012 grew moderately by 2.6 per cent, year-on-year, to 761 million U.S. dollars, decelerating at a rapid pace for the third consecutive month, and recording the lowest increase in 17 months," it said.

Although import volumes of both crude oil and refined petroleum products declined in April 2012, expenditure on petroleum imports increased in April 2012 by 7.5 percent, reflecting an increase in world market prices. (Xinhua-ANI)