Record trade deficit in Dec. as imports top US $ 2bn

• Dec. trade deficit surpasses US $ 1bn; overall trade gap for 2021 tops US $ 8bn
• Dec. imports surpass US $ 2bn mark; exports exceed US $ 1bn mark for seventh consecutive month
• SL’s fuel bill for 2021 tops US $ 3.7bn, up 47%, largely due to higher global oil prices
• Apparel exports top US $ 5.4bn, up 23%; tea exports top US $ 1.3bn 

Sri Lanka recorded its highest monthly trade deficit in December 2021, as imports surged to their highest ever monthly value amid significantly increased expenditure on oil imports, the trade data released by the Central Bank showed. 

The December 2021 trade gap shot up beyond billion dollars to US $ 1,085 million, compared to US $ 562 million in December 2020, as merchandise imports surged 46.8 percent year-on-year (YoY) to US $ 2,241 million, with the fuel bill for the month soaring 88.2 percent YoY to US $ 442.5 million. 

Higher imports overshadowed the export performance in the month, as the income from merchandise exports exceeded the US $ 1 billion mark for the seventh consecutive months to US $ 1,156 million, with both agricultural and industrial exports performing positively. 

Sri Lanka’s overall trade gap for the year 2021 widened to US $ 8,136 million, from US $ 6,008 million in 2020, as cumulative imports rose 28.5 percent YoY to US $ 20,637 million while the exports income rose 24.4 percent YoY to US $ 12,502 million. 

Textile and garments exports in December 2021 rose 18 percent YoY to US $ 533.2 million while for the year such income rose 22.9 percent YoY to US $ 5,435.1 million. 

The income from tea exports in December rose 14.3 percent YoY to US $ 232.3 million while such income for the full year rose 6.7 percent YoY to US $ 1324.4 million.

Meanwhile, Sri Lanka imported US $ 3,742.9 million worth of crude oil, refined petroleum and coal during 2021, up 47.2 percent YoY. 

The import expenditure on textile and textile articles for December 2021 rose 26.9 percent YoY while for the year such expenditure rose 31.3 percent YoY to US $ 43,066.9 million. 

Although the import expenditure on fertiliser was slightly higher in December 2021, compared to December 2020, such expenditure fell 38.9 percent YoY to US $ 158.2 million, with the government’s ban on chemical fertiliser imports. 

The expenditure on investment goods imports, which include machinery and equipment, building material, transport equipment and other investment goods, rose 36.1 percent in December 2021 to US $ 452.9 million, while such expenditure for the full year rose 25.2 percent YoY to US $ 4,462.7 million.