Real News for Educated Sri Lankans - Sri Lanka Jan-Nov trade gap narrows
http://in.reuters.com/article/domes...ype=RSS&feedName=domesticNews&rpc=401&sp=true
COLOMBO, Jan 20 (Reuters) - Sri Lanka's trade deficit in November narrowed for an 11th straight month, the central bank said on Wednesday, due to low oil prices in 2009 amid the island nation's recovery from the global crisis and a 25-year war.
The trade deficit in November narrowed to 251.2 million, while for the first 11 months of 2009, it narrowed 55.1 percent to $2.47 billion.
November exports fell 5 percent to $613 million, while imports fell 11.6 percent to $864.2 million, data showed.
"The reduction in the trade deficit is mainly due to low oil prices, compared to 2008," said Danushka Sanarasinghe, head of research at Asia Securities.
"Going forward we expect the trade deficit to rise in 2010 due to low base last year and increasing consumer demand."
The cost of petroleum imports in the first 11 months has declined by 41.8 percent, data showed.
The central bank also said workers' remittances have increased by 14.2 percent to $3.03 billion during the first 11 months of 2009 and were $567 million in excess of the trade deficit.
The bank also said gross official reserves were at $5.23 billion by end-November, sufficient to finance 6.4 months of imports.
Analysts have said the $40 billion economy is in recovery since reserves hit an eight-year low in March due to the impacts of global financial crisis and the growth slumping to and eight-year low of 3.5 percent in 2009.
The central bank has said its provisional data shows the country will have its fithe should show a current account surplus for the first time icountry would have had a current account surplus in 2009 according its provisional data, for the first time since 1977.
The country hit a record trade deficit of $5.6 billion last year due to record high crude oil price and soared commodity prices amid it was fighting the final phase of a 25-year war, which ended in May this year. (Editing by Bryson Hull)
http://in.reuters.com/article/domes...ype=RSS&feedName=domesticNews&rpc=401&sp=true
COLOMBO, Jan 20 (Reuters) - Sri Lanka's trade deficit in November narrowed for an 11th straight month, the central bank said on Wednesday, due to low oil prices in 2009 amid the island nation's recovery from the global crisis and a 25-year war.
The trade deficit in November narrowed to 251.2 million, while for the first 11 months of 2009, it narrowed 55.1 percent to $2.47 billion.
November exports fell 5 percent to $613 million, while imports fell 11.6 percent to $864.2 million, data showed.
"The reduction in the trade deficit is mainly due to low oil prices, compared to 2008," said Danushka Sanarasinghe, head of research at Asia Securities.
"Going forward we expect the trade deficit to rise in 2010 due to low base last year and increasing consumer demand."
The cost of petroleum imports in the first 11 months has declined by 41.8 percent, data showed.
The central bank also said workers' remittances have increased by 14.2 percent to $3.03 billion during the first 11 months of 2009 and were $567 million in excess of the trade deficit.
The bank also said gross official reserves were at $5.23 billion by end-November, sufficient to finance 6.4 months of imports.
Analysts have said the $40 billion economy is in recovery since reserves hit an eight-year low in March due to the impacts of global financial crisis and the growth slumping to and eight-year low of 3.5 percent in 2009.
The central bank has said its provisional data shows the country will have its fithe should show a current account surplus for the first time icountry would have had a current account surplus in 2009 according its provisional data, for the first time since 1977.
The country hit a record trade deficit of $5.6 billion last year due to record high crude oil price and soared commodity prices amid it was fighting the final phase of a 25-year war, which ended in May this year. (Editing by Bryson Hull)
