External sector strengthens further in November 2024
Workers’ remittances increase to USD 5,962 Mn in Jan-Nov 2024
Gross Official Reserves to USD 6.5 Bn
The external sector of the Sri Lankan Economy continued to strengthen further in November 2024, supported by higher inflows in the form of earnings from tourism and workers’ remittances.
Workers’ Remittances increased to USD 5,962 mn in Jan-Nov 2024 compared to USD 5,400 mn in the corresponding period in 2023. However, workers’ remittances continued to record monthly inflows of over USD 500 million since March 2024. Gross Official Reserves amounted to USD 6.5 billion at end November 2024, recording over US dollars 2 billion increases from end 2023. GOR includes the swap facility with the People’s Bank of China (PBOC), which is subject to conditionalities on usability.
Net purchases of foreign exchange from the domestic foreign exchange market by the Central Bank amounted to US dollars 327 million on net basis (based on trade date) in November 2024. Meanwhile, import coverage of GOR (including the PBOC swap) amounted to 4.2 months of imports as at end November 2024.
Services sector inflows (excluding tourist earnings) amounted to USD 304 mn in November 2024 compared to USD 277 mn in November 2023. Earnings from tourism in November 2024 are estimated at USD 273 million, compared to USD 186 million in October 2024 and USD 205 million in November 2023.
Total inflows to the services sector, excluding earnings from tourism, were estimated at US dollars 304 million in November 2024 in comparison to USD 277 million in November 2023. Sea transport services and computer & IT/BPO related services were the main contributors to the inflows in November 2024.
Total services sector outflows were estimated at USD 285 million in November 2024, in comparison to US dollars 193 million in November 2023. Major contributors to the recorded outflows from the services sector in November 2024 were overseas travel and air transport services.
Marking a net inflow for the second consecutive month in 2024, foreign investments in the government securities market recorded a net inflow of USD 20 million in November 2024. The Sri Lanka rupee continued its appreciating trend despite experiencing some volatility in the latter part of the year.
The Sri Lanka rupee recorded a monthly depreciation for the month of December 2024. However, the Sri Lanka rupee appreciated by 10.7 % against the USD during the year.
Meanwhile, reflecting cross-currency movements, the Sri Lanka rupee appreciated against other major currencies, such as the euro, the pound sterling, the Chinese yuan, the Japanese yen, the Indian rupee and the Australian dollar during the year.
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