Sri Lanka, July 14 -- Sri Lanka's official foreign reserves declined by US$ 423 million to US$ 6.54 billion in June 2026, according to First Capital Research (FCR).

The research firm also noted that merchandise imports rose sharply in May 2026, increasing 45.4% year-on-year (YoY) to US$ 2.19 billion, reflecting stronger domestic demand and higher spending on fuel and intermediate goods.

All major import categories recorded growth during the month, with intermediate goods posting the highest increase of 53.0% YoY, followed by consumer goods at 44.4% YoY and investment goods and other imports at 25.3% YoY.

Within consumer goods, non-food imports rose 57.3% YoY, while food and beverage imports increased 25.9% YoY. Among intermediate goods...