Sri Lanka imports fall in May 2025 amid higher vehicle shipments
- CNL Reporter
- July 13, 2025
- Business News, News
- Sri Lanka imports
- 0 Comments
Sri Lanka’s imports fell 179 million US dollars to 1,507 million US dollars in May 2025 from a month earlier, amid fall in services receipts, even as vehicle imports went up, central bank data shows.
Gross inflows from exports of goods, labour (remittances) and services including remittances were 2,140 million US dollars in May 2025, which was 633 million US dollars above goods imports.Services inflows fell to 464.6 million US dollars, from 602 million US dollars, with tourism earnings falling to 164 million US dollars in May from 256 million in April.
IT/BPO services also fell to 61.6 million US dollars from 85.4 million dollars in April.Sri Lanka started taxing foreign earned dollars income from April, after money printing triggered an external default ending a policy which encouraged services income to come to the country.
It is not clear whether the tax played a role in reducing services incomes. Holidays in April could reduce sales and subsequent earnings.
Sri Lanka starts ad hoc taxation under IMF programs when forex crises are triggered by inflationary rate cuts for mid-corridor targeting, flexible inflation targeting, or potential output targeting now, or central bank re-financed credit schemes and sterilized forex sales in the past.
