Import expenditure was at US dollars 8,196 million during first five months of 2019 decreased by 14.8 per cent (year-on-year).
This was largely due to lower imports of gold (-99.7%), personal vehicles (-58.5%), rice (-94.6%), wheat and maize (-36.7%), and fuel (-2.0%). As a result, the deficit in the trade account contracted to US dollars 3,281 million during first five months of 2019 from US dollars 4,914 million in the corresponding period of 2018, the Central Bank Weekly Economic Indicators revealed.
The export unit value index decreased by 9.9 per cent (year-on-year) in May 2019 mainly due to lower prices registered in all major categories of exports. The import unit value index in May 2019 decreased by 6.0 per cent (year-on-year) also due to lower prices recorded in all major categories. Accordingly, the terms of trade deteriorated by 4.1 per cent (year-on-year) to 87.2 index points in May 2019.
Meanwhile, The All Share Price Index (ASPI) increased by 2.61 per cent to 5,715.1 points and the S&P SL 20 Index increased by 5.13 per cent to 2,762.0 points, by July 19, 2019 compared to the previous week. The reserve money increased compared to the previous week mainly due to the increase in currency in circulation and deposits held by the commercial banks. The total outstanding market liquidity was a surplus of Rs. 31.41 billionn by end of the week, compared to a surplus of Rs. 30.80 billion by the end of last week.
During the year up to July 19, 2019 the Sri Lanka rupee appreciated against the US dollar (4 per cent). Given the cross currency exchange rate movements, the Sri Lanka rupee appreciated against the pound sterling (5.2 per cent), Japanese yen (1.3 per cent), the euro (5.6 per cent) and the Indian rupee (2.4 per cent) during this period. Earnings from exports grew by 4.4 per cent (year-on-year) to US dollars 4,915 million during first five months of 2019 as a result of higher earnings from exports of textiles and garments (9.2%), coconut (15.%), base metals and articles (24.2%), rubber products (4.0%), food, beverages and tobacco (4.5%) and seafood (6.7%).
The average price of tea (in the Colombo auction) decreased to US dollars 3.05 per kg in May 2019 from US dollars 3.76 per kg in May 2018. The import price of wheat increased in May 2019 (year-on-year) while import prices of rice, sugar and crude oil declined.
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