Import dependent Sri Lanka’s trade deficit for the first eleven months of 2009 more than halved to US$ 2.4 billion from 2008 while improved remittances amounting to US$ 3 billion off set this deficit. Gross official reserves had improved to US$ 5.2 billion in November, external sector data released by the Central Bank showed.

The trade deficit contracted for the eleventh consecutive month to US$ 251.2 million in November 2009, down 24.4 percent from US$ 332.4 million in November 2008, latest data from the Central Bank showed.

The Central Bank said the decline in the trade balance was largely due to the affects of the global financial crisis.

Export earnings for November 2009 declined by 5 percent to US$ 613 million. Import expenditure declined by 11.6 percent to US$ 864.2 million.

Agricultural export earnings improved by 23.7 percent to US$ 115.8 million with tea accounting for US$ 105 million, a 20.4 percent increase.

Industrial export earnings declined by 12.2 percent to US$ 450 million with garment export earnings declining by 8.1 percent to US$ 263.9 million.

Export earnings from minerals increased by 8.8 percent to US$ 7.3 million.

All sectors of imports recorded declines except food importation, increasing by 14.1 percent to US$ 113.9 million.

Petroleum imports declined 0.2 percent to US$ 150 million in November 2009, clothing and textile imports declined 3.1 percent to US$ 139 million and building materials imports declined 37 percent to US$ 45.8 million.

Overall export earnings for the first eleven months of the year amounted to US$ 6.3 billion, a 14.7 percent decline from US$ 7.4 billion for the same period in 2008.

The cumulative import expenditure for the first eleven months of 2009 amounted to US$ 8.8 billion, a 31.9 percent decline from US$ 12.9 billion the previous year.

The trade deficit for the first eleven months more than halved in 2009,dropping 55.1 percent to US$ 2.4 billion from US$ 5.5 billion the previous year.