Sri Lanka recorded a current-account surplus of US$133 million in August 2026, returning to a monthly surplus after four consecutive months of deficits, according to the Central Bank of Sri Lanka.

The Central Bank said the August improvement was supported by a lower trade deficit compared with recent months, reflecting lower import expenditure.

However, the broader year-to-date position remained negative.

Sri Lanka recorded a cumulative current-account deficit of US$291 million during January to August 2026.

The merchandise trade deficit also remained under pressure.

The cumulative trade deficit widened to US$7.2 billion during the first eight months of 2026, compared with US$4.3 billion during the corresponding period of 2025.

Monthly fuel-import expenditure declined for the fourth consecutive month in August.

Nevertheless, cumulative fuel-import expenditure reached approximately US$4 billion during January to August, representing a 61.6% year-on-year increase.

Motor-vehicle import expenditure was US$189 million in August, 24.2% lower than in August 2025.

Cumulative motor-vehicle import expenditure during January to August was US$1.684 billion.

The services account recorded a US$220 million surplus in August, although that was 24.4% lower than in August 2025.

The cumulative services-account surplus fell 21.4% year-on-year to US$2.1 billion during January to August.

Tourist arrivals declined 3.3% year-on-year in August, while total arrivals during the first eight months were 2% lower than during the corresponding period of 2025.

The August current-account surplus is therefore a significant monthly improvement but should not be interpreted as meaning that Sri Lanka's external-sector pressures have been resolved.

The year-to-date current account remains in deficit and the cumulative merchandise trade deficit is substantially wider than a year earlier.