Private remittances increased by 5.4 per cent, to US dollars 1,586 million in 2009, comparing to the corresponding period of the first half of 2008, states the Central Bank of Sri Lanka (CBSL).

The CBSL said the foreign exchange inflows have also responded favorably to the positive outlook brought about by the end to the three decades of conflict. Total net foreign inflows to the government T-bills and T-bonds since mid May 2009 to 10th August 2009 amounted to US dollar 270 million. In the meantime, the Central Bank is in the process of building up its official reserves to a more comfortable level by absorbing foreign exchange from the market.

The cumulative export earnings and import expenditure during the first half of 2009 amounted to US dollars 3,189 million and US dollars 4,437 million respectively, resulting in a trade deficit to US dollars 1,249 million, reflecting a 59.9 per cent contraction as compared to the corresponding period of 2008.

Cumulative expenditure on imports decreased by 36.7 per cent to US dollars 4,437 million during first half of 2009.The gross official reserves, with and without Asian Clearing Union (ACU) funds, recorded US dollars 1,737 million and US dollars 1,618 million respectively, by end June 2009.