COLOMBO, Aug 23: Sri Lanka's trade deficit widened by 60 per cent in the first half of 2004 to $1.13 billion, the Central Bank said on Monday, due partly to soaring global oil prices.
Exports rose by 9.6 per cent to $2.61 billion in the six months to June over the same period a year earlier while imports climbed by 21 per cent to $3.73 billion. This pushed the resort island's trade deficit up by 60.86 per cent to $1.13 billion from $700 million, the bank said.
Analysts said the sharply bigger trade deficit reflected spiralling world oil prices, a dip in agricultural exports due to a drought and higher vehicle imports. The bank said the deficit would have been worse without foreign exchange earnings from tourism, port-related earnings and private remittances.
The data was expected to put further pressure on the Sri Lankan rupee which fell by 6.4 per cent against the dollar during the first seven months of 2004 after losing just 0.4 per cent during the same 2003 period.
"With the release of the figures today, confidence could dip and that could have a further impact on the rupee," Hasitha Premaratne, research head at HNB Stock Brokers, said. -AFP
