Earnings from exports continued to decline for the eleventh consecutive month in January 2016 recording a 2.5 percent decline, year-on-year, to US$ 894 million largely reflecting continuous decline recorded in commodity prices in the international market.

Decline in export earnings of petroleum products, gems, diamonds and jewelry, tea, and spices mainly contributed for the drop.

Expenditure on imports meanwhile, contracted by 5.5 percent, year-on-year, to US$ 1.589 billion in January 2016. Significant decline recorded in expenditure on fuel imports followed by rice imports and vehicle imports.

Tourist arrivals continued to expand, recording a growth of 19.4 percent in February 2016. Earnings from tourism for the month of January increased 24.3 percent to US$ 322 million from US$ 259 a year ago.

Workers' remittances grew by 7.6 percent to US 563.4 million in January 2016 compared to US 523.5 million in January 2015.

The government securities market continued to experience a net outflow in terms of foreign investments with a cumulative outflow of US$ 253.6 million during the first two months of 2016 compared to an outflow of US$ 12.8 million in the corresponding period of 2015.

In January 2016, the BOP is estimated to have recorded a deficit of US$ 619.3 million, compared to the deficit of US$ 696.5 million in the corresponding period of 2015.

Sri Lanka's gross official reserves as at end January 2016 amounted to US$ 6.3 billion, equivalent to 4.0 months of imports while total foreign assets amounted to US$ 8.4 billion, equivalent to 5.4 months of imports.

During 2016 up to 05 May, the rupee depreciated by 1.1 percent against the US dollar.