SRI LANKA NEWS (SEPTEMBER 2023) Compiled by Victor Melder. Merchandise trade deficit widened in July 2023 compared to July 2022, due to the combined impact of relatively low export earnings and high import expenditure, the Central Bank of Sri Lanka reported, releasing the External Sector Performance Review for July 2023. The deficit in the merchandise trade account increased in July 2023 to US$ 367 million, compared to US$ 122 million recorded in July 2022. However, the cumulative deficit in the trade account during January to July 2023 narrowed to US$ 2.657 billion from US$ 3.628 billion recorded over the same period in 2022, driven by lower imports. Earnings from merchandise exports declined by 12.4 percent in July 2023, over the corresponding month in 2022, to US$ 1.020 billion. The decline in earnings from industrial exports, including garments, associated with slowing external demand mainly contributed to this contraction in export earnings ...