Sri Lanka, Sept. 2 -- The Central Bank of Sri Lanka reported a stark reversal in the country's external sector performance, with the current account falling into a deficit of USD 142 million in July 2026.

This marks the fourth consecutive month in the red, a sharp contrast to the surplus recorded during the corresponding period last year.

Sri Lanka's appetite for foreign goods is vastly outpacing its ability to sell abroad, pushing the cumulative trade deficit up to USD 6.5 billion for the first seven months of the year, an increase of about 67%.

Driving this gap was a substantial surge in import expenditure.

Merchandise imports jumped by 19.6% year-on-year in July, heavily fuelled by crude oil.

Despite global market fluctuations, th...