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Deficit in trade account during January- April widened to $ 2.94 billion

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The cumulative deficit in the trade account during January – April widened to $ 2.94 billion from $ 2.69 billion recorded over the same period in 2020.

Central Bank said both exports and imports were significantly higher in April, compared to the lockdown period in April 2020, although both were lower compared to March. Cumulatively, exports were up 29.6% to $ 3.8 billion in the first four months of 2021, whilst imports were up 20% to $ 6.7 billion of which non-fuel imports were up 17.6% to $ 5.35 billion.Central Bank said the major contributory factors for this outcome were sharp rise in value of fuel imports, machinery and equipment, textiles and textile articles, chemical products and plastics and articles thereof. Recording the highest ever value for a month of April, earnings from merchandise exports in April increased by 189.8% to $ 818 million, from a significantly low value of $ 282 million recorded in April 2020 amidst the island wide lockdown measures due to the first wave of the COVID-19 pandemic.Earnings from exports in April, however, were 25.2% lower than the export earnings of $ 1,094 million recorded in March, reflecting the impact of the beginning of the third wave of the pandemic and the festive holiday-related developments in April.Earnings from all subsectors of industrial goods exports improved substantially by 302.5% to $ 647 million in April, YOY. On a month-on-month basis, earnings from industrial exports declined by 22.0%, except for the subsector of petroleum products; leather, travel goods and footwear (mainly footwear); animal fodder (mainly dog/cat food); and printing industry products (mainly currency notes). Earnings from textiles and garments; rubber products; machinery and mechanical appliances; and gems, diamonds and jewellery mainly recorded declines compared to March. Meanwhile, earnings from the export of petroleum products improved in April over the preceding month due to higher exports of naphtha, while earnings from bunker and aviation fuel declined with the significant reduction in volumes of aviation fuel and bunkering fuel supplied to aircraft and ship arrivals, despite the increase in the average prices of these export products.Export earnings from all subsectors related to agricultural goods increased by 37.7% to $ 165.6 million in April, compared to a year ago, though contracted by 35.6% compared to March. Despite higher export prices, export earnings from tea declined substantially compared to the previous month due to lower export volumes. In addition, export earnings from spices (mainly cinnamon, pepper and cloves), coconut (both kernel and non-kernel products), seafood and minor agricultural products declined notably in April over March.  Earnings from all subsectors under mineral exports were also higher in April (by 332.9%) than export earnings in April 2020, but lower (by 10.3%) than export earnings in March. The decline in April over March reflected lower earnings from subsectors of earths and stone (mainly quartz), and ores, slag and ash (mainly titanium ores).The export volume index and the unit value index increased by 182.0% and 2.8%, respectively, on a YOY basis, in April. This indicates that the increase in export earnings was due to the combined impact of higher export volumes and prices.Expenditure on merchandise imports in April increased by 52.1% to $ 1.7 billion from low import expenditure of $ 1.12 billion in April 2020, when the effects of the first wave of the pandemic and low global petroleum prices were present. The YOY increase in the import expenditure was driven by the increase in imports of intermediate and investment goods. However, import expenditure in April was considerably lower (by 11.4%) compared to March ($ 1.92 billion), although import values in both March and April were higher than pre-pandemic levels.With declines recorded in both food and beverages and non-food consumer good categories, expenditure on the importation of consumer goods in April declined by 7.9%, compared to April 2020 and by 26.6% compared to March. 



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Business

Private taxi operators at BIA call for speedy rental relief as tourist arrivals dwindle

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Tourists in SL: Dwindling numbers

Private taxi operators at Bandaranaike International Airport are calling for urgent rental relief, stating that they are struggling to sustain operations after paying nearly Rs. 19 million in monthly rental fees amid a sharp decline in tourist arrivals during the off-season.

The operators said tourist arrivals have dropped by nearly 80%, severely affecting their income and making it difficult to continue meeting high operational costs.

“Only a small number of tourists are now arriving at the airport, and a majority of them are being taken by metered taxi operators, who pay only around Rs. 700 per ride as fees to Airport and Aviation Services, an operator said.

According to the operators, the six long-standing private taxi service providers at the airport each pay monthly rentals ranging from approximately Rs. 2.9 million to Rs. 4 million. In addition, they are required to maintain a minimum a fleet of six vehicles along with dedicated airport staff.

“What we are requesting is a temporary reduction in monthly rental payments for around three to four months until tourist arrivals improve and the industry returns to normal, they said.

The operators noted that they have been operating at the airport for more than two decades, providing transport services to both local and international travelers, while metered taxi services entered the airport transport sector only about two years ago.

They also alleged that metered taxi operators have been granted more favourable operating conditions and questioned the process through which those operators were allowed to operate at the airport.

Operators argue that the present financial burden has become unsustainable, given the sharp drop in business volumes and what they describe as an uneven competitive environment within the airport transport system.

“What we are requesting is a 50% reduction in monthly rental fees for a period of at least three months, they said.

They also raised concerns about the quality and condition of some vehicles operated by metered taxi providers.

“Passengers are often unaware of the condition of some of these vehicles until they enter them, which can compromise safety standards, one operator claimed.

In contrast, the private airport taxi operators say they maintain newer vehicles and employ experienced, professionally trained drivers to ensure higher standards of passenger safety and service quality.

The operators warned that failure to address the issue could have wider economic and social consequences. The six service providers collectively employ around 250 staff, and continued financial pressure may lead to job losses and a reduction in organised airport transport services.

By Hiran H Senewiratne

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Refurbished AAC Call Box declared open

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The operation of Automobile Association of Ceylon(AAC) Call Boxes, in the past had provided yeoman service to many motorists including during the era of British planters. AAC services for members are a motoring security when they travel.

The Call Box in Nuwara Eliya was recently refurbished to provide a better and improved service to the Members in the area and the touring public. Now from this Call Box the motorists could get Road Side Assistance, Valuation Reports, Technical Advice and also issuance of International Driving Permits.

The refurbished Call Box at Nuwara Eliya was declared open by Dhammika Attygalle, President of the Association in the presence of S V Ganesh – Vice President, several Executive Committee members, Puthrasigamani, Life Member of the Association, Eng. C S Samarasekera of RDA- Nuwara Eliya, Devapriya Hettiarachchi, Secretary (AAC) and Eng. C L Liyanasuriya – Chief Engineer(AAC).

The services from the Nuwara Eliya Call Box are available from 8.00am to 5.00pm.

Call Technical Officer Sampath Madagama on 0767315696.

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Ceylon Chamber of Commerce to host Sri Lanka Climate Summit 2026

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From Risk to Opportunity: Mainstreaming Climate Action into Sri Lanka’s Growth Story

As climate rules tighten globally and investor expectations shift from commitment to compliance, climate action is now directly tied to trade, competitiveness, and access to finance. Against this backdrop, The Ceylon Chamber of Commerce will host the second edition of the Sri Lanka Climate Summit on 9 June 2026 at the Taj Samudra Hotel, convening policymakers, industry leaders, financiers, and technical experts to focus on pathways for integrating climate action into Sri Lanka’s growth story.

Held as a biennial platform, the Summit returns this year under the theme “From Risk to Opportunity: Mainstreaming Climate Action into Sri Lanka’s Growth Story.” While the inaugural edition in 2024 focused on building awareness and advocacy, the 2026 Summit shifts the conversation toward implementation, technical readiness, and compliance as climate-related obligations begin to directly influence access to markets, finance, and investment.

Rather than treating sustainability as a standalone agenda, this year’s discussions will explore how climate considerations are becoming embedded across core areas of business and economic decision-making, from infrastructure and trade to finance, governance, digitalisation, agriculture, and supply chains.

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