Fuel, vehicles boost Sri Lanka’s February 2026 import bill amid rising trade deficit

Higher spending on fuel and vehicle imports led to a surged import bill in February 2026 and an expanded trade deficit, Central Bank data showed.

Merchandise imports in February jumped 25.2 percent to US$1.83 billion compared to US$1.46 billion recorded in the same month last year.

Import bill on personal and commercial vehicles in February skyrocketed to US$193.6 million from US$9.7  million a year earlier, while the outflow for fuel purchases jumped 43 percent to US$398 million from US$278.4 million a year earlier.

Total merchandise exports in February edged up 0.5 percent to US$1.06 billion, resulting in a trade gap of US$ 776.1 million, the data showed.

While the nation maintained a current account surplus for the fourth consecutive month in February, a deeper look at the numbers reveals a widening trade deficit and an import surge that could threaten long-term stability, analysts say.

Both remittances and foreign exchange revenue from tourism helped offset the trade deficit and contributed to the current account surplus.

Both remittances and tourism brought US$1.08 billion into Sri Lanka in February this year.

In the first two months of 2026, the merchandise trade deficit widened to US$ 1.4 billion, a significant jump from the US$ 1.1 billion recorded in 2025.

The surplus in the services account, however, declined by 16.7 percent year-on-year in February 2026, reflecting reduced inflows from major service categories including tourism earnings, alongside higher outflows related to overseas travel.

Foreign investments in the government securities market recorded a net inflow of US$ 53 million, while foreign investments in the Colombo Stock Exchange (CSE), including both primary and secondary market transactions, recorded a net outflow of US$ 30 million during the month of February 2026.