Sri Lanka’s merchandise import bill jumped 25.2% year-on-year in February 2026 to $1.83 billion, driven by a surge in vehicle purchases and a sharp rise in fuel imports, EconomyNext reports.
Vehicle imports recorded the most dramatic shift, rising to $193.6 million from just $9.7 million in February 2025 — a 1,897% jump that reflects the first full year of post-crisis vehicle import liberalisation. Fuel imports climbed 43% year-on-year to $398 million as global crude prices and freight insurance premiums spiked on the back of the Middle East crisis.
Merchandise exports edged up only 0.5% to $1.06 billion, leaving a monthly trade deficit of $776.1 million — the widest in four months. The cumulative deficit for January and February reached $1.4 billion, against $1.1 billion in the same period of 2025.
Workers’ remittances and tourism earnings together brought in around $1.08 billion in February, helping Sri Lanka post a current account surplus for the fourth consecutive month. Analysts cited by EconomyNext warned that the offset depends on remittance and tourism flows holding up — both of which are now under pressure from the Middle East energy shock and the slump in March arrivals.
The numbers will sharpen IMF concerns about external buffers as the 5th and 6th programme reviews conclude. The surge in vehicle imports, driven by pent-up demand from a five-year ban, is widely seen as politically untouchable, leaving fuel rationing as the only near-term lever to compress the deficit. Trump’s 90-day tariff pause may ease export pressure but adds little to the import side of the ledger.
