Sri Lanka, July 2 -- The external sector performance continued to reflect the impact of the war in the Middle East, with the current account recording a deficit for the second consecutive month in May 2026 the Central Bank said releasing the external sector performance for May 2026.

The external current account recorded a deficit of US$ 194 million in May 2026, mainly driven by the widened trade deficit, a moderation in the services surplus, despite an increase in workers' remittances compared to a year earlier. Consequently, the external current account deficit during January to May 2026 amounted to US$ 97 million. The merchandise trade deficit widened in May 2026, as import expenditure increased at a faster pace than export earnings. C...