Sri Lanka’s trade deficit in the first half of 2011 widened 62.7 percent to $4.25 billion.
See The Island's report here.
Export earnings grew 35 percent to $ 5.06 billion, but imports grew faster at 46 percent to $9.3 billon.
Expatriates' remittances ($2.5bn) were greater than earnings from garments ($2 bn).
The widening deficit is putting severe pressure on the rupee to depreciate, but the Central Bank is intervening to prop it up.
See The Island’s report here.
In July the Central Bank spent $413 million to prop up the rupee – the same amount of foreign direct investment up to end-July this year.
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