Business
Trade deficit widens in May 2023 – CBSL
Highlights
• The cumulative trade deficit remained modest so far during 2023. The trade deficit in May 2023 widened, compared to a year ago, for the first time since February 2022.
• Workers’ remittances in May 2023 recorded higher than that of the previous month. Earnings from tourism recorded a robust growth despite being lower than April 2023 due to seasonal affects.
• There was a notable appreciation of the exchange rate by 8.8 per cent during May 2023.
• Foreign investments in the government securities market recorded a notable net inflow during May 2023.
• The receipt of USD 350 million from the Asian Development Bank (ADB) as well as substantial net purchases of forex by the Central Bank from the market, resulted in the gross official reserve level (GOR) increasing to about US dollars 3.5 billion by end May, compared to US dollars 2.8 billion as at end April 2023.
Merchandise Trade Balance
The deficit in the merchandise trade account amounted to US dollars 447 million in May 2023, compared to US dollars 403 million recorded in May 2022, recording a year-on-year expansion for the first time since February 2022. The cumulative deficit in the trade account during January to May 2023 was US dollars 1,926 million, a sizeable decline from US dollars 3,528 million recorded over the same period in 2022. The major contributory factors for this change in the trade balance are shown in Figure 1.
Performance of Merchandise Exports
Overall Exports: Earnings from merchandise exports declined by 2.7 per cent in May 2023, year-on-year, to US dollars 1,019 million, while increasing notably compared to April 2023. The decline in earnings from industrial exports mainly contributed to the decline in export earnings amidst improved agricultural exports. Meanwhile, cumulative export earnings during January to May 2023 recorded at US dollars 4,866 million, a decline of 7.7 per cent over the same period in the last year.
Industrial Exports: Earnings from the exports of industrial goods declined in May 2023, compared to May 2022, mainly due to the lower exports of garments to most of the major markets (the USA, the EU, and the UK). Similarly, a sizeable decline was recorded in the exports of petroleum products (led by lower export volumes and prices of bunker fuel exports), textiles (primarily, cotton fabric), printing industry products and transport equipment. However, earnings from animal fodder (mainly, wheat residues); machinery and mechanical appliances (mainly, mechanical appliances parts); food, beverages and tobacco; and gems, diamonds and jewellery increased in May 2023.
Agricultural Exports: Earnings from the exports of agricultural goods increased in May 2023, compared to a year ago, with a substantial share of increase being contributed by tea (led by higher average export prices and volumes). Meanwhile, an increase in earnings was reported in seafood (mainly, processed fish), spices (mainly, higher volumes of nutmeg and mace, and cinnamon), minor agricultural products (mainly fruits and areca nuts), unmanufactured tobacco, and vegetables. However, the export of subcategories of coconut (primarily, fibres, desiccated coconut and coconut oil) and natural rubber recorded a decline in May 2023, compared to the previous year.
Mineral Exports: Earnings from mineral exports declined in May 2023, compared to May 2022, mainly due to the decline in exports of ores, slag, and ash.
Performance of Merchandise Imports
Overall Imports: Expenditure on merchandise imports increased marginally to US dollars 1,466 million in May 2023, compared to US dollars 1,451 million in May 2022, recording the first year-on-year increase since February 2022. The increase in expenditure of consumer goods contributed to the increase in import expenditure amidst the decline in expenditure on intermediate and investment goods imports. Ongoing recovery in economic activities mainly contributed to the increase in import expenditure while the gradual relaxation of import restrictions could generate higher import expenditure in the period ahead. Meanwhile, cumulative import expenditure during January to May 2023 declined by 22.8 per cent over the corresponding period in 2022.
Business
Sri Lanka secures 10% US tariff rate: JAAF thanks the President and government for decisive action
Today’s announcement by USTR of the finality of the Section 301 investigations into countries’ ability to impose and effectively enforce a prohibition on the importation of goods produced with forced labour sees 18 countries placed on a 10% tariff, with the balance of 42 countries facing a 12.5% tariff.
Initial indications were that Sri Lanka would fall into the 12.5% category, a position that would have placed the country at a real disadvantage against a number of key competitor nations.
Following Sri Lanka’s submissions to the USTR earlier this month, JAAF is pleased to see that Sri Lanka is now among the countries placed on the 10% tariff rate, on par with competitors including Bangladesh, Pakistan, India, and Cambodia.
Sri Lanka’s apparel industry competes in a crowded field, and even a 2.5 percentage point difference in tariff treatment can be the difference between winning and losing an order to a rival sourcing destination. Securing parity with Bangladesh, Pakistan, India, and Cambodia protects the competitiveness of an industry that remains the country’s largest export earner and a major source of employment, particularly for women, across the country.
JAAF recognises that this result did not happen by chance. It reflects sustained, coordinated engagement between industry and government at every level, from the submissions made to USTR to the direct representations carried out in Washington. We view this as a strong example of what can be achieved when the private sector and government work in close partnership on issues that directly affect Sri Lanka’s export competitiveness.
We remain committed to continuing this collaboration, both to safeguard the gains secured on Thursday and to ensure Sri Lanka’s apparel and textile industry is well positioned to compete on a level playing field internationally.
Business
CAHM students shine at National Bartenders Competition and Dainties 2026
Students of the Colombo Academy of Hospitality Management (CAHM) at SLIIT once again demonstrated their talent, creativity, and professional excellence by securing outstanding achievements at two prestigious national hospitality competitions held recently in Sri Lanka.
The Colombo Academy of Hospitality Management (CAHM) is Sri Lanka’s leading private hospitality education institute, established in 2013 and located at the SLIIT Main Campus in Malabe. Renowned for delivering internationally recognised qualifications in partnership with the William Angliss Institute (RTO 3045), Australia—the Australian Government’s specialist hospitality education institute and the country’s leading provider of hospitality, tourism, foods and events education—CAHM offers Australian-standard vocational qualifications that combine international best practices with hands-on practical training and strong industry relevance, enabling graduates to pursue rewarding careers around the world.
At the 31st National Bartenders Competition (NBC), organized by the Sri Lanka Hospitality Graduates Association (SLHGA) in partnership with International Distillers Limited (IDL), CAHM student Anurasi Chandrasoma (Commercial Cookery Batch 22) emerged as the Winner in the highly competitive Hotel School Category. The competition, held on 26 May 2026 at the Sri Lanka Institute of Tourism and Hospitality Management (SLITHM), Colombo, attracted more than 75 participants from hospitality education institutions across the country.
Representing CAHM alongside the winner were Dishala Gunawardhana (Hospitality Management Batch 37), Sunera Sathindu (Commercial Cookery Batch 21), and Devindu Amarasekara (Patisserie Batch 11), all of whom showcased exceptional bartending skills and professionalism. The achievement marks another significant milestone for CAHM, reinforcing its reputation as one of Sri Lanka’s leading hospitality education institutions.
Business
Asia-Pacific business leaders to convene in Sri Lanka for UN Global Compact’s flagship regional event
Asia-Pacific stands at the forefront of one of the defining transitions of our time. Home to many of the world’s fastest-growing economies, the region is also confronting some of the world’s most pressing sustainability challenges—from climate change and biodiversity loss to widening inequalities, geopolitical uncertainty and rapid technological transformation. As these challenges reshape the global business landscape, businesses are increasingly being called upon not only to respond, but to lead.
Against this backdrop, Sri Lanka will host Forward Faster Now | APAC 2026: Driving Business Leadership for Sustainable and Inclusive Growth, the United Nations Global Compact’s flagship regional event for Asia-Pacific. Bringing together more than 200 business leaders, sustainability practitioners, policymakers, representatives from the United Nations and UN Global Compact Country Networks from across the region, the two-day event will provide a platform to strengthen partnerships, exchange practical solutions and mobilize business leadership in support of the Ten Principles of the United Nations Global Compact and the Sustainable Development Goals (SDGs).
Led by the UN Global Compact Asia-Pacific Regional Hub and hosted in collaboration with UN Global Compact Network Sri Lanka, the regional event reflects a shared commitment to advancing responsible business and strengthening regional collaboration at a time when sustainable development depends on collective leadership and cross-sector cooperation.
The event will welcome Sanda Ojiambo, Assistant Secretary-General, CEO & Executive Director of the United Nations Global Compact, whose presence spotlights the strategic importance of the Asia-Pacific region within the United Nations Global Compact. Her first official visit to Sri Lanka signals the growing role of the region in driving responsible business and sustainable development, while offering participating companies a unique opportunity to engage with global leadership, showcase their sustainability journeys, and help shape the next chapter of collective action towards the Sustainable Development Goals.
Alongside Sanda Ojiambo, the Forum will also convene more than 60 global and regional leaders from business, the United Nations and civil society, including Dilhan C. Fernando, Chairman of Dilmah Ceylon Tea Company and Chairman of UN Global Compact Network Sri Lanka, and Sandra Wu, ESG Executive Adviser at Mirait One Corporation, fostering dialogue and collaboration to accelerate business leadership for sustainable and inclusive growth across Asia-Pacific.
Forward Faster Now | APAC 2026 also marks an important milestone in advancing the United Nations Global Compact’s 2026–2030 Strategy, which places renewed emphasis on equipping businesses with the knowledge, tools and partnerships needed to accelerate sustainable business transformation, catalyzing collaboration to address shared global challenges, and advancing responsible business leadership as a cornerstone of sustainable development. As one of the first flagship regional events aligned with this strategic direction, the event will help translate global ambition into regional action by connecting leaders, sharing practical experience and fostering the partnerships needed to create lasting impact.
Register Your Interest
Forward Faster Now | APAC 2026 will take place in Colombo, Sri Lanka, on 11–12 August 2026.
To register your interest or learn more about the event, please contact:
Chamath Kalupahana
Country Focal Point – Forward Faster Now | APAC 2026
Manager – Participant Engagement & Strategic Planning
UN Global Compact Network Sri Lanka
Email: chamath@unglobalcompact.org.lk
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