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Deficit in trade account widens in the face of import surge

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External Sector Performance – December 2021

The deficit in the trade account widened in December 2021 compared to a year earlier, mainly due to excessive surge in imports recording the highest ever monthly import expenditure, despite persistently high earnings from exports that exceeded US dollars 1.0 billion for the seventh consecutive month. During the year 2021, the trade deficit widened notably, driven by considerable increase in imports that outpaced the growth in exports. Tourist arrivals continued the growth momentum in December with a notable increase over the previous month. Meanwhile, workers’ remittances recorded a month-on-month growth in December 2021, mainly reflecting the response to incentive scheme introduced for remittances and the seasonal increase. The weighted average spot exchange rate in the interbank market continued to hover around Rs. 201 per US dollar during the month.

Trade Balance:

The deficit in the trade account widened to highest ever monthly value of US dollars 1,085 million in December 2021, compared to the deficit of US dollars 562 million recorded in December 2020. The cumulative deficit in the trade account in 2021 also widened to US dollars 8,136 million from US dollars 6,008 million recorded in 2020.

Terms of Trade:

Terms of trade, i.e., the ratio of the price of exports to the price of imports, improved by 4.6 per cent in December 2021, compared to December 2020, as the increase in export prices surpassed the increase in import prices. Meanwhile, the terms of trade for 2021 deteriorated by 7.8 per cent compared to the previous year.

Overall exports:

Earnings from merchandise exports in December 2021 grew by 19.9 per cent over December 2020 to reach US dollars 1,156 million. Increases in earnings were observed across all main categories, while industrial exports mainly contributed to the expansion. Meanwhile, cumulative export earnings in 2021 increased by 24.4 per cent to US dollars 12,502 million compared to US dollars 10,047 million recorded during 2020. This is the highest ever export earnings for a year recorded in history compared to previous highest export earnings of US dollars 11,940 million that was recorded in 2019.

Industrial exports:

Earnings from the export of industrial goods increased by 21.3 per cent in December 2021, compared to December 2020. This increase was due to a broad-based increase in earnings from most of the industrial products led by garments, petroleum products, food, beverages, and tobacco and rubber products. However, a decline in earnings was reported in the category of printing industry products (mainly currency notes). Export of garments to all major markets improved.

– CBSL



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Ranil calls for regionalism amid global shifts

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Former President Ranil Wickremesinghe addresses the 5th Bay of Bengal Maritime Dialogue hosted by the Pathfinder Foundation in Colombo, on May 20 and 21.

Reiterates the need to integrate with southern India’s rapidly growing economy

At the inaugural session of the Fifth Bay of Bengal Maritime Dialogue held at Cinnamon Grand, Colombo on May 20, former President Ranil Wickremesinghe delivered a compelling speech urging greater regional connectivity, particularly on the western side of the Bay of Bengal, which he said lags behind its eastern counterparts in infrastructure development for regional connectivity.

Hosted by the Pathfinder Foundation, the event brought together diplomats and maritime experts to discuss the geopolitical and economic future of the Bay of Bengal, a region poised to become a global economic powerhouse by 2050.

Wickremesinghe began by highlighting the shifting global trade landscape, referencing U.S. President Donald Trump’s announcement of reciprocal taxes, which he said could disrupt existing trade frameworks.

“Globalisation will not disappear, but it will be affected,” he noted, emphasising the need for stronger regional trade blocs like BIMSTEC and ASEAN to fill the gap.

“The Bay of Bengal was once the heart of global trade and civilisation,” he said, recalling its historical significance in Buddhism, Pali, and Sanskrit traditions.

A key focus of his address was the stark disparity in connectivity between the eastern and western shores of the Bay of Bengal.

“Now, we must revive that spirit of collaboration through infrastructure-driven economic integration,” he noted.

Further speaking he said,” Infrastructure projects, including high-speed rail links have spurred between China, Laos, Thailand, and Myanmar. The India-Myanmar-Thailand rail link and the proposed land bridge from Rangoon to the Gulf of Thailand aim to reduce reliance on the Malacca Strait. However, Sri Lanka, Bangladesh, and India’s eastern seaboard lack comparable infrastructure.”

Wickremesinghe stressed the need for a Bangladesh-West Bengal-Bhutan-Nepal economic corridor and. recalling his constant past stance, Wickremesinghe advocated for a land connection between Sri Lanka and India’s southern states; Tamil Nadu, Andhra Pradesh, and Telangana, which he said could unlock immense economic potential.

“Sri Lanka’s ports, including Trincomalee and a potential new port between Wattala and Ja-Ela, must be integrated with southern India’s rapidly growing economy,” he said. This, he argued, would boost transshipment, apparel exports, and regional trade.

However, he acknowledged political and environmental concerns, urging ‘exhaustive discussions’ before any final decision is made on the land bridge.

With India projected to become the world’s second-largest economy by 2050 and Indonesia the fourth, Wickremesinghe called for accelerated cooperation.

“The Bay of Bengal’s collaborative success story is unfolding. We can choose to be part of it, or build our infrastructure projects separately,” he said.

The Fifth Bay of Bengal Maritime Dialogue continued on Wednesday, with local and foreign experts delving deeper into these pressing regional challenges.

By Sanath Nanayakkare

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SriLankan Airlines begins search for new cabin crew talent

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SriLankan Airlines has launched a major recruitment drive in search of new cabin crew talent, with shortlisted applicants now participating in the next phase of the transparent and rigorous selection process taking place from 20–23 May 2025 at BMICH.

SriLankan Airlines has launched a major recruitment drive in search of new cabin crew talent to represent its renowned frontline team, in line with the airline’s expansion plans amid growing passenger volumes and emerging markets. The process began with a public advertisement that drew nearly 12,000 applications. Demonstrating its commitment to transparency in selection, the airline is now inviting shortlisted applicants to take part in the next phase of the recruitment drive, scheduled to take place from 20–23 May 2025 at the Bandaranaike Memorial International Conference Hall (BMICH).

At BMICH, each candidate will undergo a meticulous multi-stage screening process, including document verification such as qualification certificates, an image and presentation assessment and an aptitude interview conducted by a panel of experts. Candidates must successfully complete each stage to proceed to the next. Those who meet the criteria across all stages will be invited for a final, in-depth interview at the airline’s headquarters in Katunayake, after which the final selection will be made on who is cleared for takeoff.

Susan Jacob, Group Head of Human Resources at SriLankan Airlines commented on the talent acquisition process, stating, “We are seeking individuals who embody the spirit of Sri Lanka and are passionate about providing world-class service to our valued passengers. That’s why we follow a transparent and thorough recruitment and selection process, not just to ensure fairness to all hopeful applicants, but also to choose individuals who are truly cut out for the role. Being a cabin crew member remains an aspirational career for many young people, and while it certainly comes with its perks, it is also a demanding job with long hours, which is why each candidate is evaluated across a range of criteria to make sure they have the right attitude and skills to thrive.”

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Sri Lanka and China to strengthen bilateral and cultural ties by joining hands to preserve ‘’Cultural Heritage and Tourism ‘’

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Two Tourism Promotional strongholds got together, as Sri Lanka Tourism and City Alliance for Maritime Silk Road Heritage Conservation and World Heritage Nomination (CAMSR ) further strengthened their bilateral and cultural ties focusing on Heritage protection and development of Heritage Tourism, at a special ceremony and Forum held at the Radisson Blu Hotel, Galle, on 19th of May 2025.

CAMSR, is an the organization led by China, which is a city alliance comprised of 34 China cities and one Indonesia city, spreading across Guangzhou, Shanghai, Nanjing, Ningbo, Hangzhou, Wenzhou, Chaozhou, Hong Kong, Macau, etc. The CAMSR coordinator office is located in the Guangzhou Municipal Government, and the Guangzhou culture, Radio, Television, and the Tourism Bureau is the responsible government body. The Chinese delegation comprised of Liu Xiaoming Deputy Chief of Guangzhou Municipal Culture, Radio, Television and Tourism Bureau as the head of delegation together with Zheng Xiaolu Division Director , Hu Jianguang Deputy Division Director and Li Minyong , Chief Curator of Guangzhou Nanyue King Museum attended this event.

The event kicked off with a stunning Traditional dance performance which showcased Srilankan cultural elegance. As a VIP speaker, Sampath Nissanka , Managing Director ,Sri Lanka Tourism Promotion Bureau addressed the gathering. He said “This event in Galle underscores the script of our relations that will be crucial for enhancing the full potential of this Initiative. By working together, sharing experiences, and understanding, we can ensure the Maritime Silk Route to become a pipeline for shared prosperity and development of both nations”. He further said,.‘’I strongly believe this initiative will unlock new avenues for tourism, to attract more visitors to Sri Lanka from China, and foster a deep cultural understanding and exchange between our nations’’

Liu Xiao Ming, Chief of Guangzhou Municipal Culture, Radio, Television and Tourism Bureau expressed his thoughts on this initiative and mentioned that he was pleased to have this long standing partnership with Sri Lanka Tourism in promoting Cultural Heritage among 34 cities in China under the CAMSR program and importance of promoting Galle City as a world heritage site accredited by UNESCO.

Waruna de Silva as a Board member of Galle Heritage Foundation, made a descriptive presentation regarding the ancient relationship between China and Sri Lanka and also the significance of the Galle Harbour as a famous trade hub. Out of the seven voyages of Admiral Zheng He visited Sri Lanka in the 14th Century from Yunnan, four visits were to Galle to explore its potential. He mentioned that specifically the Silk Route, which has been a popular pathway used to connect the two countries during the ancient times since 6th century B.C, Sri Lanka had been an important landmark for maritime activities and trading of spices ever since then. Records of Marco Polo and the Chinese Traveler Monk Faxian are examples for Sri Lanka as a popular Maritime destination. Therefore Galle is considered as a living heritage city and is also becoming a famous hub for International festivals such as the Galle Literary Festival

Ruwan Wijerathna, Chairman , Galle Tourism Department also expressed his views at this occasion by elaborating their role as a provincial tourism body in preserving and developing Galle as a Heritage city.

Thereafter the Maritime Silk Road forum was held, moderated by Li Pei Feng, Global Fellow Partner of CAMSR program where questions were posted to the panel comprised of Li Ming Yong Chief of Guangzhou Nan yue kingdom Museum, Ms. Madubhani Perera, Director PR of SLTPB , Dushan Wickramasuriya, Director/Marketing of SLTPB , Prof. Amalka Wijesooriya Senior Lecturer at the History and Archaeology Department of University of Ruhuna, and Mr. Chandrarathna, Chief of the Galle Maritime Museum on the development of maritime and heritage tourism in China and Sri Lanka.

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