Sri Lanka’s import bill dropped by USD 179 million in May 2025 to USD 1.507 billion, despite a notable rise in personal vehicle imports, and there has been a continued surge in workers’ remittances, according to the latest data released by the Central Bank of Sri Lanka (CBSL).

The value of personal vehicle imports stood at USD 118 million in May, a marginal dip from USD 134 million in April. However, the broader import decline was driven by weakening services inflows and tighter control on other categories of goods, amid concerns over the sustainability of Sri Lanka’s external sector.

The import contraction comes as remittance inflows continued their upward trajectory. Workers abroad sent home USD 635.7 million in June—up 22% year-on-year—bringing total remittances for the first half of 2025 to USD 3.7 billion. This represents an 18.9% increase from the same period last year, reinforcing remittances as the single largest source of foreign exchange for the country. In 2024, Sri Lanka received a total of USD 6.57 billion in remittances,

largely underpinned by a steady outflow of migrant workers, with 312,836 Sri Lankans officially departing for overseas employment during the year.

While gross inflows from exports, remittances, and services amounted to USD 2.14 billion in May—comfortably exceeding goods imports by USD 633 million—the performance of the services sector flagged warning signs. Services receipts fell to USD 464.6 million from USD 602 million in April. Tourism earnings dropped sharply to USD 164 million from USD 256 million, while IT and BPO service exports declined to USD 61.6 million from USD 85.4 million.

Investment goods imports, at USD 344.3 million in May, remained only marginally below April’s figure of USD 371 million.

The Navy seized over 800 kilos of smuggled spices, medicines, and cosmetic products during a search operation near Devils Point beach, in Kilinochchi, on 11 July.

Naval personnel, attached to SLNS Buwaneka of the North Central Naval Command, intercepted two suspicious cabs in the area, recovering 300 kilos of cardamom, 260 kilos of turmeric powder, 273 kilos of dried ginger, and a haul of unlicensed medicines and cosmetic items prepared for distribution.

Four suspects—aged between 39 and 49—were arrested in connection with the smuggling attempt. They have been identified as residents of Erakkandi, Kalmunaikudi, Trincomalee, and Puttalam.The suspects, along with the vehicles and contraband, were handed over to the Customs Preventive Office in Katunayake for further legal proceedings, Navy sources said.

Members of the Sri Lanka Education Service Lecturer Trade Union will stage a protest today (14) at 11:00 am in front of the Ministry of Education, at Isurupaya, Battaramulla, citing a number of unresolved issues, including internal salary disparities, Union Secretary S. M. P. Bandara said yesterday.

Union’s Media Secretary D. K. G. Wimalaratne said teachers’ salaries had been revised in 2022, but the then government had failed to provide an interim allowance, or salary increment, to education service lecturers, who were also entitled to it.

Chairman Savanathilaka Bandara said that lecturers responsible for training over 8,000 teacher recruits from national universities have been excluded from the streamlined promotion process that ensures career progression in the education sector.

They have had around seven rounds of discussions with Prime Minister and Education Minister Dr. Harini Amarasuriya and other top officials, but their problems remain unresolved, trade unionists complain.

by Pradeep Prasanna Samarakoon ✍️