Sri Lanka trade deficit widened beyond USD 5.5 billion in the first half of 2026 as fuel and vehicle imports rose faster than exports.
Sri Lanka trade deficit widened to more than USD 5.5 billion during the first six months of 2026, according to the Central Bank of Sri Lanka.
The latest Monetary Policy Report shows that import expenditure increased much faster than export earnings during the period.
Total imports reached approximately USD 12.4 billion in the first half of 2026.
By comparison, exports generated only around USD 6.9 billion.
As a result, the country’s current account balance, which had remained in surplus during the previous three years, recorded a deficit of USD 245 million during the first half of 2026.
Higher spending on fuel and motor vehicle imports was among the main factors behind the widening Sri Lanka trade deficit.
Global oil prices increased amid the war situation in the Middle East region.
Consequently, Sri Lanka’s fuel import expenditure rose by 58.8% to approximately USD 3.2 billion.
Vehicle imports also placed significant pressure on the import bill.
Sri Lanka spent around USD 1.3 billion on private and commercial vehicle imports during the period.
In response, the Government has introduced measures aimed at reducing vehicle import demand.
These include a 50% surcharge on motor vehicle import taxes.
The Central Bank has also tightened financing limits applied to vehicle purchases.
Authorities expect these measures to reduce demand for imported vehicles in the coming months.
If import growth slows, pressure on the Sri Lanka trade deficit could ease to some extent.
However, the latest figures underline the growing imbalance between import expenditure and export revenue during the first half of 2026.
