Sri Lankas trade deficit widened by nearly a third to 3.37 billion dollars in 2006, as the country spent more to import petroleum. Sri Lankas imports jumped 15.7 per cent in 2006 to 10.25 billion dollars while exports climbed 8.4 per cent to 6.88 billion dollars. The deficit was 2.52 billion dollars in 2005. The Indian Ocean nation, which imports all of its petroleum needs, said oil imports rose 25 per cent to 2.07 billion dollars as global prices reached record levels.

However, the outflow of foreign currency to pay the import bill was offset by 2.33 billion dollars, or a 21 per cent gain, in remittances from Sri Lankas working overseas and other flows such as tourism, which produced an overall 193milliondollar balance of payments surplus in 2006. Textiles and garments, the islands biggest money spinner, earned 3.03 billion dollars in 2006, a 6.4 per cent increase as the country shipped more clothes to buyers in United States.