Sri Lanka’s trade deficit widened to $829 million in June 2026, up from $540 million a year earlier, as import growth outpaced export gains. The external sector continued to bear the effects of developments in the Middle East. Imports rose 17.3% year-on-year to $1.97 billion, driven primarily by a 40.2% surge in fuel import expenditure, reflecting higher spending on refined petroleum products. By contrast, exports edged up just 0.2% to $1.14 billion. The services account surplus narrowed by 33.8% year-on-year to $162 million, as services outflows increased more rapidly than inflows. Over the first half of 2026, the cumulative trade deficit widened to $5.5 billion, compared with $3.3 billion in the corresponding period of 2025.