ZANZIBAR, Sept. 14 -- ZANZIBARS services sector continued to provide a strong external cushion in the year ending July, with the services account surplus expanding by 23 per cent to 1.659 billion US dollars, helping offset a sharp increase in the islands import bill.

According to the latest Bank of Tanzania Monthly Economic Review, services receipts rose by 20.2 per cent to 1.7433 billion US dollars, up from 1.4498 billion US dollars recorded in the corresponding period last year.

The performance highlights the growing importance of services in Zanzibars external sector, with the sector generating substantial foreign exchange needed to finance imports and support the islands balance of payments.

The improvement was reinforced by a decl...