Sri Lanka has recorded a current account surplus of approximately US$1.7 billion in 2025, marking a significant milestone in the country’s ongoing economic recovery journey. This achievement comes despite persistent challenges such as a trade deficit, global economic uncertainty, and adverse weather conditions that impacted key sectors during the year.
The current account surplus reflects strong foreign exchange inflows, mainly supported by increased worker remittances, improved tourism earnings, and stable service-sector income. Remittances from Sri Lankan workers overseas remained a key contributor, highlighting renewed confidence in the domestic financial system and currency stability.
Although Sri Lanka continued to experience a merchandise trade deficit, the gap was effectively offset by gains in services exports and inflows from tourism, which saw steady growth throughout 2025. Export-oriented sectors such as apparel, tea, rubber-based products, and IT services played an important role in maintaining foreign exchange inflows.
The surplus also demonstrates improving macroeconomic stability, following fiscal discipline, controlled inflation, and structural reforms implemented under the IMF-supported programme. Analysts note that this outcome strengthens Sri Lanka’s balance of payments position, supports foreign reserve accumulation, and enhances the country’s ability to meet external debt obligations.
Economists believe that sustaining this momentum will depend on continued export diversification, policy consistency, and global demand conditions. Nevertheless, the 2025 current account surplus is widely viewed as a positive signal of resilience and gradual recovery for Sri Lanka’s economy.
