Srilanka, Sept. 1 -- Sri Lanka's external current account recorded a deficit of US$142 million in July, extending its deficit for a fourth consecutive month amid the impact of developments in the Middle East, according to the Central Bank of Sri Lanka (CBSL).



The latest data from the Central Bank's Economic Research Department showed that the cumulative current account deficit reached US$387 million during the first seven months of 2026, compared with a surplus during the corresponding period last year.



The country's merchandise trade deficit also widened significantly, reaching US$6.5 billion during January-July 2026, compared with US$3.9 billion during the same period in 2025.



The wider trade deficit was driven by increased...