Business
Increase in import expenditure outpaces rise in export earnings
Extracts of CBSL External Sector Performance – August 2021
Increased financial inflows bolstered Gross Official Reserves (GOR) during the month of August 2021, while merchandise exports exceeded US dollars 1.0 billion for the third consecutive month. However, the increase of import expenditure outpaced the increase of export earnings, resulting in an expansion of the trade deficit, compared to a year earlier. Tourist arrivals gathered some momentum in August 2021, recording a notable increase over the previous month, although the numbers remained low.
A moderation of workers’ remittances was observed in August 2021. Sri Lanka received the allocation of Special Drawing Rights (SDR) from the International Monetary Fund (IMF) as part of the general SDR allocation in 2021. Further, initial disbursements under the bilateral currency swap arrangement between the Central Bank of Sri Lanka and the Bangladesh Bank were received during August 2021. The average spot exchange rate in the interbank market remained broadly stable in August 2021, while pressures on the exchange rate were observed towards the end of the month, prompting the Central Bank to intervene in the foreign exchange market to stabilise the rupee.
Trade Balance and Terms of Trade
Trade Balance: The deficit in the trade account widened on a year-on-year (y-o-y) basis to US dollars 586 million in August 2021, compared to the deficit of US dollars 342 million recorded in August 2020. The cumulative deficit in the trade account from January to August 2021 also widened to US dollars 5,509 million from US dollars 3,812 million in the corresponding period of 2020. The major contributory factors that contributed to the widening of the trade deficit are shown in Figure 1.
Terms of Trade: Terms of trade, i.e., the ratio of the price of exports to the price of imports, deteriorated by 19.2 per cent in August 2021, compared to August 2020, as the increase in import prices surpassed the increase in export prices.
Performance of Merchandise Exports1
Overall exports: Earnings from exports in August 2021 grew by 16.2 per cent over August 2020 to reach US dollars 1,100 million, reaching the highest level of exports recorded in a month of August. Earnings from exports were marginally higher at US dollars 1,104 million in July 2021. Cumulative export earnings increased by 22.6 per cent during January-August 2021, amounting to US dollars 7,903 million, compared to US dollars 6,445 million recorded in the corresponding period in 2020. However, the recent gap of around US dollars 345 million per month, on average, between the merchandise outflow and the financial inflow related to such exports has been a matter of concern.
Industrial exports: Earnings from the export of industrial goods increased by 17.5 per cent in August 2021, compared to August 2020. This increase was due to a broad-based increase in earnings from most of the industrial products led by textiles and garments; petroleum products; rubber products; food, beverages and tobacco; and machinery and mechanical appliances. Export of garments to all major markets increased. Earnings from the export of petroleum products increased with the increase in prices of aviation and bunker fuel and the increase in volumes of bunker fuel exports. Increase in earnings from tyres and gloves led to higher earnings from rubber products.
Business
SLEIS 2026 to examine how Sri Lanka can strengthen its place in Asia’s growth networks
As Asia continues to account for a growing share of global economic activity, Sri Lanka faces an important opportunity to strengthen its links with regional trade networks, supply chains and economic corridors. How the country can make better use of these connections to attract investment, expand trade and strengthen its position in regional value chains will be among the key questions at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.
Titled “Linking Sri Lanka to Asia’s Growth Networks: Trade, Corridors, and Value Chains,” the session will examine the opportunities for Sri Lanka to deepen its integration with the wider Asian economy and build stronger connections with regional and global markets.
The session keynote will be delivered by P.D Singh – Chief Executive Officer, India and South Asia, Standard Chartered Bank. He will be joined for a panel discussion by Chathuranga Abeysinghe – Deputy Minister of Industry and Entrepreneurship Development, Akio ISOMATA – Ambassador of Japan to Sri Lanka, MASAAKI Kawabata – Chairman – Toyota Lanka (Private) Limited, and Ravi Jayawardena – Group Chief Executive Officer-Maliban Biscuits (Private) Limited. The session will be moderated by Ms. Subhashini Abeysinghe – Research Director- Verité Research.
For Sri Lanka, stronger regional integration can open opportunities beyond traditional export markets. Greater participation in regional supply chains, improved trade connectivity and closer links to economic corridors can support investment in areas such as logistics, manufacturing, export services and other sectors connected to international production networks.
The discussion will consider what Sri Lanka needs to do to strengthen its position within these networks, including improving trade connectivity, attracting investment and creating a business environment that enables companies to participate more effectively in regional and global value chains.
It will also look at the experience of businesses and international institutions operating across the region, providing perspectives on how companies assess markets, build supply chains and identify locations for investment. With supply chains and investment flows increasingly shaped by regional connectivity, the session will also consider the partnerships and strategies needed to position Sri Lanka as a more competitive participant in Asia’s growth networks, while creating opportunities for trade, investment, innovation and economic growth.
The session will form part of the second day of SLEIS 2026, held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy.”
The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.
Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).
Business
AAC launches seat belt safety awareness initiative with RDA Colombo
The Automobile Association of Ceylon (AAC), in collaboration with the Road Development Authority (RDA) and Police – Traffic Division, will conduct a special Road Safety Awareness Programme to promote the importance of wearing seat belts in vehicles specially on the express highways in order to reduce road fatalities and serious injuries.
The official handing-over ceremony took place at the Chairman’s Office of the Road Development Authority on 14th September 2026, where specially designed Seat Belt Safety Hanging Tags & Stickers prepared by the Automobile Association of Ceylon were handed over to the RDA for distribution to motorists at entry points to the expressways.
The initiative is being conducted in connection with the seat belt law coming into effect on 19th September 2026 and is intended to create greater public awareness of the importance of wearing seat belts in both the front and rear seats of vehicles.
Representing the Automobile Association of Ceylon at the ceremony Dhammika Attygalle, President; Prasanna De Zoysa, Sectional Chairman – Road Safety; and Devapriya Hettiarachchi, Secretary, Senior Superintendent of Police -Traffic Sisira Peththrathanthri, participated in the programme.
The Automobile Association of Ceylon has consistently maintained that road safety is one of its foremost priorities. Through awareness campaigns, educational programmes and collaboration with government authorities and other stakeholders, the Association continues to encourage responsible driving and safer behaviour among all road users.
AAC believes that the proper use of seat belts, including by rear-seat passengers, is a simple but vital safety measure that can help reduce serious injuries and save lives in the event of a road crash.
The programme further strengthens the cooperation between the Automobile Association of Ceylon, the Road Development Authority and the Police in their shared commitment towards safer roads and saving lives in Sri Lanka.
Business
Sanath Jayasuriya as Brand Ambassador
Global Housing & Real Estate (Pvt) Ltd (GHR) has announced a landmark partnership with Sri Lankan cricket legend Sanath Jayasuriya, as its Brand Ambassador as GHR enters a new chapter in its journey within Sri Lanka’s luxury real estate sector.
The partnership was officially unveiled at a press conference held at Cinnamon Life, Colombo, on 14 September 2026, bringing together industry leaders, investors and members of the media under the theme “Two Gamechangers, A New Beginning.”
The collaboration brings together two names associated with challenging convention in their respective fields: Sanath Jayasuriya, whose fearless approach transformed the dynamics of international cricket, and GHR, which has sought to introduce new approaches to property investment and luxury living in Sri Lanka.
Over the past two decades, GHR has built its presence in Sri Lanka’s real estate sector with a focus on quality, structural integrity and long-term investment value.
A significant milestone in the company’s journey came in 2016, when GHR introduced the hotel residency concept to the Sri Lankan market. The model brought together luxury hospitality and real estate investment, creating opportunities for property ownership with the potential to generate investment returns while contributing to the growth of the country’s high-end tourism offering. GHR has since continued to expand its portfolio across key destinations in Sri Lanka.
Speaking at the announcement, Dasun Wickramarathna, Chairman of Global Housing & Real Estate (Pvt) Ltd, said, “For over twenty years, Global Housing & Real Estate has strived to push the boundaries of what property development can achieve in Sri Lanka. As pioneers who introduced the hotel residency concept back in 2016, our mission has always been clear: to provide high-yield investment opportunities for our clients while taking Sri Lanka’s condominium industry into a new frontier.”
Commenting on the decision to partner with Sanath Jayasuriya, he added, “When looking for a voice to represent GHR’s ethos, Sanath Jayasuriya was the natural choice. Just as Sanath disrupted traditional international cricket and redefined how the world viewed the opening overs, GHR challenged traditional approaches to real estate and established a new benchmark in luxury living. This partnership represents a true convergence; Two Gamechangers, A New Beginning.”
-
Sports5 days agoDDS set to lose Test captaincy
-
News5 days agoSri Lanka faces new grid challenge as rooftop solar surges: former CEB GM
-
Latest News5 days agoShafali, Deepti power India into sixth T20 Asia Cup final
-
Latest News4 days agoSri Lanka thwart Fatima Sana challenge to secure Asia Cup final spot
-
News3 days agoGnanasara Thero absconding after SC ruling
-
Features6 days agoLost for 90 years: Rare Goby resurfaces in Jaffna
-
News4 days agoAmmunition cache found in old Kandy bungalow
-
Latest News7 days agoItalian Naval Vessel ‘ITS Giuseppe Garibaldi’ arrives in Colombo
