Workers’ Remittances increase to USD 3,144 Mn in 1H 2024

External sector performance in the first half of 2024 remained positive, with higher inflows in the form of workers’ remittances and earnings from tourism, despite a slightly higher trade deficit.

Services sector inflows (excluding tourist earnings) amounted to USD 1,762 million during Jan-Jun 2024 compared to USD 1,561 million during the same period in 2023.

Tourist earnings amounted to USD 1,557 million during Jan-Jun 2024 compared to USD 875 million during Jan-Jun 2023. Earnings from tourism in June 2024 were estimated at US dollars 151 million, in comparison to USD 154 million in May 2024 and USD 123 million in June 2023.

Total inflows to the services sector, excluding earnings from tourism, were estimated at US 1,762 million during the first half of 2024 in comparison to US dollars 1,561 milDlion. Workers’ remittances increased to USD 3,144 million during Jan-Jun 2024 compared to USD 2,823 million. Workers’ remittances amounted to US dollars 520 million in June 2024.

The Sri Lanka rupee remained broadly stable during July 2024 despite some intermittent volatility. The Sri Lanka rupee appreciated by 7.1 % against the US dollar during the year up to July 31, 2024.

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 up to July 31, 2024.

Foreign investments in CSE recorded a net inflow during Jan-Jun 2024.

Total services sector outflows were estimated at USD 1,505 million during the first half of 2024, in comparison to USD 987 million in the corresponding period in 2023. There was an increase in most of the major services sector outflows in the first half of 2024 including overseas travel, sea transport, technical, trade-related, and other business services, manufacturing services and construction.

Merchandise export earnings during the first half of 2024 increased by 4.7% compared to the same period last year, reaching US dollars 6,144 million.

Merchandise trade deficit (Y-o-Y) widened in June 2024, although it narrowed compared to May 2024. The cumulative deficit in the trade account during the first half of 2024 widened to US dollars 2,540 million from US dollars 2,289 million recorded over the same period in 2023. Meanwhile, the trade deficit marginally widened to USD 370 million in June 2024.

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