Sri Lanka, Aug. 3 -- The external sector continued to reflect the impact of developments in the Middle East, with the monthly current account recording a deficit in June 2026. The external current account recorded a deficit of US$ 149 million in June 2026, marking the third consecutive monthly deficit. The cumulative deficit for the first half of 2026 was US$ 245 million, the External Sector Performance Summary June 2026 issued by the Central Bank said.

The merchandise trade deficit widened on a year-on-year basis in June 2026, as the increase in import expenditure outpaced the growth in export earnings. Consequently, the cumulative trade deficit widened to US$ 5.5 billion during the first half of 2026, compared to US$ 3.3 billion in the...