Owing to the increased demand for garment exports to the US and Europe, Sri Lanka’s trade deficit has narrowed substantially this year. According to Central Bank of Sri Lanka Exports jumped 16.8 per cent to US $5.44 billion in the first six months of calendar 2014 compared to the same period last year. Meanwhile the imports registered a decline of 1.2 per cent to US $8.99 billion compared to the same period last year, reducing the trade deficit from US $4.44 billion in the first six months of last year to US $3.55 billion in the same period this year. Sri Lanka’s exports in mainly garments to the EU jumped 34.6 per cent while those to the US increased 12.1 per cent, as Sri Lanka’s $4.5 billion clothing sector recovers from a slowdown.
