Balance of Payments record US $ 985 m surplus in 2013

by Uditha Kumarasinghe

The Balance of Payments (BOP) has recorded a surplus of US$ 985 million in 2013 compared to US$ 151 million in 2012.

According to the Annual Report 2013 of the Central Bank of Sri Lanka, the external sector had been strengthened in 2013 resulting in a higher BOP surplus.

The significant improvement in the current account and substantial inflows to the financial account have contributed to a larger surplus in the overall balance.

The net International Investment Position (IIP) of Sri Lanka as at end of 2013 recorded a net liability of US$ 39.3 billion, compared to a net liability of US$ 36.4 billion in 2012.

The IIP shows the value and the composition of external financial assets and liabilities of a country vis-a-vis the rest of the world at the end of a particular period.

Sri Lanka's total foreign assets as at end 2013 recorded US$ 9.4 billion, an increase of 2.5 percent compared to US$ 9.2 billion at the end of 2012.

Almost 80 percent of Sri Lanka's assets with non-residents were in the form of reserve assets held by the Central Bank while other deposit taking corporations held around 11 percent of total assets.

Significant increases in the inflows of foreign investments which are liabilities in the context of the IIP resulted in an increase in foreign liabilities amounting to US$ 48.7 billion, a 6.8 percent increase compared to the previous year.