COLOMBO, Jan. 27 (Xinhuanet) -- Sri Lanka's trade deficit widened during the first 11 months of 2004 compared with the correspondingperiod in 2003 but the export earnings had increased, the Central Bank said Thursday.

    The Bank said the widening deficit was mainly due to increase in the import of petroleum products. During the first eleven months of 2004, export earnings increased by 13 percent to 5,244 million US dollars as compared with export earnings of 4,638 million US dollars in the corresponding period of 2003, the Bank said in a statement.

    The higher growth in export earnings was due to the increased performance in textile and garments exports which accounted for 48percent of total exports.

    Sri Lanka's budget deficit this year is forecast at 7.5 percentof the country's gross domestic product, down from 8 percent last year.

    The 2005 budget presented in November aims to meet the targeted5.5 percent to 6 percent economic growth.

    The Bank has said that the effect on the economy due to the Dec.26 tsunami disaster would be minimal. Enditem