Sri Lanka’s June trade deficit widened as much as 51.9 percent to US $ 689 million amid higher vehicle imports and sliding exports, the data released by the Central Bank showed.

The cumulative trade gap for the first six months of the year also widened 15.6 percent to over US $ billion.

Both industrial and agricultural exports in June fell 1.6 percent year-on-year (yoy) to US $ 713.8 million and 11.5 yoy to 226.7 million, respectively, dragging the total exports for the month down 4.2 percent yoy to US $ 944.1 million.

Apparel exports which accounted for almost half of the total exports fell 4.9 percent yoy to US $ 424.3 million.

Rubber products exports, which mainly comprises of tyres fell 14.5 percent yoy to US $ 65.5 million.

Gems, diamonds and jewellery exports also fell 30.4 percent yoy to US $ 23.3 million amid a tightening up of Chinese government regulations.

Export earnings from transport equipment rose over 400 percent yoy to US $ 30 million. The Central Bank said this was due to an export of a cruise ship to India. 

Petroleum products exports which comprises of bunkering operations rose 82.6 percent yoy to US $ 48.3 million amid bunkering prices falling over 50 percent.

Tea exports continued its negative growth as exports fell 20.1 percent yoy to US $ 152.6 million.

The sea food exports, affected by the EU ban, fell 23.7 percent yoy to US $ 13.5 million. The cumulative sea food exports for the six months fell 36.1 percent yoy to US $ 85.8 million. 

Spices exports continued its upward trend with exports rising 43.4 percent yoy to US $ 39.9 million in June while cumulative exports rose 55.2 percent yoy to US $ 170.8 million. 

Import expenditure in June rose 13.5 percent yoy to US $ 1633.3 million, led by higher consumer and investment goods imports.

Food and beverages imports fell 6.5 percent yoy to US $ 126.8 million with sugar imports falling over 50 percent yoy to US $ 17.9 million, amid lower international sugar prices.

However, non-food consumer goods rose 86.7 percent yoy to US $ 264.5 million with vehicle imports for personal usage suring over 110 percent yoy to US $ 118.5 million.

Import of intermediate goods fell 3.1 percent yoy to US $ 864.2 million mainly due to lower expenditure on fuel imports which fell 41.3 percent yoy to US $ 241.9 million amid lower international crude oil prices. 

Import of apparel articles rose 32.6 percent yoy to US $ 218 million, indicating higher apparel exports in the coming months.

Fertilizer imports during June rose 105 percent yoy to US $ 28.2 million.

Investment goods imports rose 39.8 percent yoy to US $ 377.1 million with transport equipment and machinery imports increasing 238.6 percent yoy to US $ 75.6 million and 32.3 percent yoy to US $ 192.6 million, respectively. 

Building material imports also rose 7.1 percent yoy to US $ 108.5 million.