rashmika.wickramasinghe07@gmail.com – Page 2

SRI LANKA UPDATE | 09 May 2025 – 15 May 2025

💰 The Economy📰 Sri Lanka’s tourism revenue rises 13.7 percent in April 2025Sri Lanka’s foreign exchange earnings from tourism reached USD 256.7 million in April 2025,reflecting a 13.7 percent increase compared to the same period last year, according to theCentral Bank of Sri Lanka.Link: https://tinyurl.com/mpceyekj 📰 2024 records all-time high in Sri Lankan overseas employment departuresSri Lanka recorded a new high in foreign employment departures in 2024, with a total of 314,828individuals leaving the country for overseas jobs. This marks a 5.8 percent increase comparedto the previous year, and surpasses the earlier record of 310,953 departures in 2022, accordingto official data. Meanwhile, official worker remittances rose by 10.1 percent to reach USD 6.6billion, with the majority of inflows originating from countries in the Middle East.Link: https://tinyurl.com/yc6uk42z 📰 Colombo Stock Exchange (CSE) rallies beyond 16,100, signaling market optimismThe CSE closed on a strong note, exceeding the 16,100 mark indicating renewed investorconfidence. The All Share Price Index (ASPI) rose 215.07 points (+1.35 percent) to close at16,131.24, while the S&P SL20 index gained 76.23 points (+1.64 percent) to end at 4,734.03.This surge was supported by easing global economic tensions, particularly between the U.S. andChina, boosting sentiment across equity markets.Link: https://tinyurl.com/4bkvsx5j ⚖ Politics & Policy📰 EDB to lead local apparel exporters to China for technology exposure programmeIn September, the Export Development Board (EDB), in collaboration with the Sri Lanka Embassyin China, will host a Technology Upgradation and Exposure Programme for local apparelexporters. Participants will attend the Sewing Machinery and Accessories Show (CISMA) 2025;the world’s largest professional sewing machinery exhibition, and tour leading Chinese apparelmanufacturers, and fabric markets to gain firsthand insight into advanced apparel technologies.Link: https://tinyurl.com/yc24yu8d 📰 NCE calls on the Government to delay SVAT removal until systems are readyThe National Chamber of Exporters of Sri Lanka (NCE) has urged the Government to adopt acautious and consultative approach regarding the proposed removal of the Simplified ValueAdded Tax (SVAT) scheme. Representing the interests of the export community, the NCEemphasized that any changes to the SVAT system should be deferred until all relevant digitaland procedural reforms are fully implemented and tested, ensuring a smooth transition withminimal disruption to exporters. Therefore, exporters are continuing to urge the authorities todelay any action on SVAT removal this year.Link: https://tinyurl.com/y3khp5pn 📰 US invites Sri Lanka for next stage of tariff discourseDeputy Minister of Finance and Planning Dr. Harshana Suriyapperuma informed Parliament on08 May that Sri Lanka has been invited to the next phase of negotiations with the United Statesregarding export tariffs, which is currently awaiting Cabinet approval. He noted that the discussions thus far have progressed satisfactorily, crediting Sri Lanka’s timely engagement withthe U.S.Link: https://tinyurl.com/y5bdfh6p 📰 Government approves foreign-funded grid substation development proposalThe Cabinet of Ministers has approved a proposal by Power and Energy Minister KumaraJayakody to proceed with securing a USD 60 million investment for the development of aproposed grid substation, under the framework of mutual trust extended by the World Bank andthe Asian Development Bank. The Cabinet also approved efforts to obtain a risk guaranteefacility amounting to USD 10 million sponsored by the International Development Institute.Link: https://tinyurl.com/4hrr7fjv 📰 Terms of new Local Government authorities to commence on 02 JuneElections Commission Chairman R.M.A.L. Rathnayake announced that the official term of thenewly elected Local Government authorities would commence on 02 June.Link: https://tinyurl.com/mstb432n 📰 CEB proposes 25-35 percent electricity tariff hike amid IMF pressureThe Ceylon Electricity Board (CEB) is considering a 25 to 35 percent electricity tariff increase,with the International Monetary Fund (IMF) urging Sri Lanka to implement revised rates. CEBsources confirmed that the proposed hikes align with a pricing formula agreed upon by the CEBand the Public Utilities Commission of Sri Lanka (PUCSL). The new rates will require PUCSLapproval prior to implementation.Link: https://tinyurl.com/4jyhz7nr !? What you need to know📰 MAS hands over kits to Sri Lanka National AthletesBodyline (Pvt.) Ltd, a division of MAS Holdings, officially handed over the 2025 Sri Lanka athletickits to the national contingent, as part of Bodyline’s ongoing partnership with Sri LankaAthletics (SLA). The handover ceremony, held on 07 April, marks the continued partnershipbetween Bodyline and SLA, which extends through to the Los Angeles Olympics in 2028.Link: https://tinyurl.com/ys6dn2vp 📰 Aitken Spence Apparels segment wins two awardsACE Apparels (Pvt) Ltd and Aitken Spence (Garments) Pvt Ltd, subsidiaries of Aitken SpenceApparels, were recognized among the top twenty companies at the CPM Best ManagementPractices Company Awards 2025, organized by the Chartered Professional Managers Institute ofSri Lanka.Link: https://tinyurl.com/4w78bxdp Disclaimer – This Advisory is intended for circulation among JAAF stakeholders only. Please donot circulate or share on social media. The Advisory includes economic, political, social andgovernance perspectives. This Advisory was prepared by the Strategic Communications Unit ofAdfactors PR Lanka.For inquiries, contact sarah.muiz@adfactorspr.com

Weekly Updates

SRI LANKA UPDATE | 02 May 2025 – 08 May 2025

💰 The Economy📰 World Bank approves USD 1 billion loan for Sri LankaSri Lanka has been granted a USD 1 billion loan by the World Bank to support the developmentof its agriculture, tourism, and energy sectors. According to a statement issued on 7 May, thefunding is intended to strengthen key local industries and attract private sector investment todrive sustainable growth. The announcement followed a meeting in Colombo between WorldBank President Ajay Banga, and Sri Lankan President Anura Kumara Dissanayake.Link: https://tinyurl.com/42hb2tpu 📰 Sri Lanka records 17.3 percent rise in tourist arrivals in April 2025According to data released by the Sri Lanka Tourism Development Authority (SLTDA), a total of174,608 tourists visited the country in April 2025. This represents a 17.3 percent increasecompared to April 2024, which recorded 148,867 arrivals. As a result, the cumulative numberof tourist arrivals for the first four months of 2025 has reached 896,884.Link: https://tinyurl.com/mrxmmk8z ⚖ Politics & Policy📰 Government commits to repealing PTA to retain EU GSP+ concessionsSri Lanka has reiterated its commitment to abolishing the Prevention of Terrorism Act (PTA),and has provided a timeline for its replacement with new counter-terrorism legislation thatcomplies with international norms and standards. This information was shared during the 8thmeeting of the Working Group on Governance, Rule of Law, and Human Rights, which took placeon April 5 in Colombo, as noted in a joint media release from the European Union and Sri Lanka.Link: https://tinyurl.com/3utrsj3f 📰 Prime Minister Meets with President of the World Bank GroupPrime Minister Dr. Harini Amarasuriya met with President of the World Bank Group, Ajay Bangaat the Prime Minister’s Office to discuss Sri Lanka’s development priorities, and thecontinuation of strategic collaboration. Discussions focused on investment in critical sectorssuch as healthcare, education, agriculture, tourism, and production industries.Link: https://tinyurl.com/fwmk8be6 📰 CEB to submit new tariff proposals ahead of expected electricity tariff revisionsThe Public Utilities Commission of Sri Lanka (PUCSL) has announced that it expects the CeylonElectricity Board (CEB) to submit its proposals for the second electricity tariff revision of theyear within the forthcoming week.Link: https://tinyurl.com/5t4p8b9j 📰 Sri Lanka signs four MoUs with VietnamOn 5 April, Sri Lanka and Vietnam signed four Memoranda of Understanding (MoUs) and onebilateral agreement in the presence of President Anura Kumara Dissanayake and VietnamesePresident Luong Cuong. The bilateral agreement focuses on enhancing cooperation and mutualassistance in customs affairs.Link: https://tinyurl.com/yck3h8vu 📰 Sri Lanka Customs to publicize names of tax-evaders and entitiesSri Lanka Customs has announced its intention to publish the names of individuals andinstitutions found guilty of violating customs laws. According to an official statement, thesenames will be made available on the Sri Lanka Customs website as part of a broader initiativeto deter willful tax evasion, ensure the accurate collection of Government revenue, andstrengthen the enforcement of import and export regulations.Link: https://tinyurl.com/26npbm6s !? What you need to know📰 JAAF confident in Government’s commitment to new GSP+ standardsSecretary General of the Joint Apparel Association Forum (JAAF), Yohan Lawrence stated thatthe current GSP+ phase is scheduled to conclude in 2027. Countries wishing to participate inthe new scheme will need to submit new applications. He expressed confidence that the SriLankan Government will take the necessary actions to ensure the country qualifies for thisprogram, particularly in light of the significant impact of exports on Sri Lanka’s economicrecovery.Link: https://tinyurl.com/yr46fny3 📰 ITSB initiative launched to enhance business transparency and sustainability‘Improving Transparency for Sustainable Business (ITSB)’, a transformative initiative for thetextile and apparel sector, was launched virtually on 29 April 2025. Supported by the SwedishGovernment, the initiative was jointly led by the Global Reporting Initiative (GRI), theSustainable Development Council (SDC), and the Joint Apparel Association Forum (JAAF) in SriLanka.Link: https://tinyurl.com/bdh2jpry 📰 Omega Line wins top Presidential Export Award for 2023/24Omega Line Ltd. has won the prestigious Merit award in the Large Apparel category at thePresidential Export Awards ceremony for the year 2023/24, organised by the Sri Lanka ExportDevelopment Board.Link: https://tinyurl.com/593994dn 📰 MAS celebrates student-led sustainability at Eco Go Beyond AwardsMAS Holdings reaffirmed its commitment to sustainability education and youth empowermentat the MAS Eco Go Beyond Sustainable Schools Programme 2024 Awards Ceremony, held on 04April at MAS Athena in Thulhiriya.Link: https://tinyurl.com/bdw5d6xt Disclaimer – This Advisory is intended for circulation among JAAF stakeholders only. Please donot circulate or share on social media. The Advisory includes economic, political, social andgovernance perspectives. This Advisory was prepared by the Strategic Communications Unit ofAdfactors PR Lanka. For inquiries, contact sarah.muiz@adfactorspr.com

Weekly Updates

SRI LANKA UPDATE | 25 April 2025 – 01 May 2025

💰 The Economy📰 Sri Lanka secures staff-level IMF agreement on fourth review of bailoutThe International Monetary Fund (IMF) announced that Sri Lanka has reached a staff-levelagreement with the Fund on the fourth review of its Extended Fund Facility (EFF) programme.Upon approval by the IMF Executive Board, Sri Lanka will gain access to approximately USD 344million in financial assistance, according to the official statement.Link: https://tinyurl.com/46tamvpt 📰 EU expresses positive outlook on GSP+ review during meeting with President DissanayakeThe Head of South Asia Division, European External Action Service of the European Union (EU),Charles Whiteley stated that the European Union has a favorable perspective on Sri Lanka’scurrent GSP+ review process. He made these remarks during a meeting held on 30 April at thePresidential Secretariat with President Anura Kumara Dissanayake, as part of an official visit byan EU delegation to Sri Lanka.Link: https://tinyurl.com/5744svmc 📰 Industrial Production Index rises 6.3 percent in February 2025The Index of Industrial Production (IIP) recorded 93.5 index points in February 2025,representing a 6.3 percent increase compared to the same period in 2024. The data indicatesa continued recovery in industrial activity following the stabilization of the country’s economicconditions.Link: https://tinyurl.com/2kec687c ⚖ Politics & Policy📰 Sri Lanka moves to introduce new legal framework for SOE managementThe Cabinet of Ministers has granted its policy approval for the State-Owned Enterprises (SOEs)Management Draft Bill prepared in order to introduce a new legal framework for the propermanagement, and maintenance of State-Owned Enterprises.Link: https://tinyurl.com/23tbms4w 📰 Cabinet agrees to conduct Economic Census under two phasesThe Cabinet of Ministers has granted approval to conduct an Economic Census in two stages.Accordingly, the Department of Census and Statistics plans to conduct an economic census in2025 and 2026 to update the data collected in the previous census, ensuring that agriculturaland non-agricultural activities are addressed separately in two stages.Link: https://tinyurl.com/2zzahcdk 📰 Sri Lanka and Pakistan hold talks on defence collaborationThe fifth annual Sri Lanka-Pakistan Bilateral Defence Dialogue commenced on 28 April inIslamabad, Pakistan, marking a continued commitment to strengthening defence cooperationbetween Sri Lanka and Pakistan. A high-level discussion has taken place between the twonations aimed at enhancing bilateral cooperation, fostering mutual understanding on regionalsecurity dynamics, and exploring opportunities for defence collaboration.Link: https://tinyurl.com/3cxtzarn 📰 President Anura Kumara Dissanayake to sign several agreements on visit to VietnamPresident Anura Kumara Dissanayake will be on a visit to Vietmam from May 3 to 6, during whichseveral bilateral trade agreements will be signed, Cabinet Spokesman, Minister NalindaJayatissa stated.Link: https://tinyurl.com/2rb9s65s !? What you need to know📰 Sri Lanka apparel exporters seek parity with competitors in US tariff talksThe Joint Apparel Association Forum (JAAF) of Sri Lanka has urged the Government to ensureparity with other apparel-manufacturing nations in its negotiations with the US, as the countryworks to mitigate a 44 percent tariff imposed during the Trump administration. In a statement,JAAF expressed appreciation for the Government’s commitment to addressing key tradebarriers, and pursuing measures that protect market access and enhance the competitivenessof Sri Lankan exports.Link: https://tinyurl.com/296vfv3x 📰 Sri Lanka’s apparel and textile sector advances sustainability with SBTi alignmentLeading Sri Lankan textile, apparel, and manufacturing companies are advancing sustainabilityby aligning with the Science-Based Targets initiative (SBTi). Organizations across the sector—including Brandix, Hirdaramani, Hayleys Fabrics, and MAS, as well as emerging firms such asInQube, Hela Clothing, and SolTrim—are setting measurable targets to reduce greenhouse gasemissions across their operations and supply chains.Link: https://tinyurl.com/3uw32z2d 📰 Brandix feted at ‘ACCA Sustainability Reporting Awards’Brandix, a leading apparel solutions provider in Sri Lanka, was awarded the top honor in theManufacturing Category at the ACCA Sustainability Reporting Awards 2024. The company’s ESGReport outlined its initiatives to minimize environmental impact, manage resourcesresponsibly, uphold ethical and socially responsible practices, and maintain strong governancestandards. Brandix excelled under ACCA’s evaluation criteria, which included Completeness,Credibility, and Communication.Link: https://tinyurl.com/3ra4f5nj 📰 Polestar Lanka Garments invests USD 5.08 million in Sri Lanka, to create 679 jobsPolestar (Lanka) Garments Ltd, a subsidiary of China’s Lianfa Group, has signed an agreementwith the Board of Investment (BOI) to invest USD 5.08 million in a new export-oriented apparelmanufacturing facility. Lianfa, a publicly listed company with a USD 1 billion turnover and 60years of textile industry experience, will establish the plant to produce apparel forinternational markets. The project is expected to generate 679 employment opportunities inSri Lanka.Link: https://tinyurl.com/5cu6vm76 Disclaimer – This Advisory is intended for circulation among JAAF stakeholders only. Please donot circulate or share on social media. The Advisory includes economic, political, social andgovernance perspectives. It draws on news reports, analyses, Government announcements anddocuments, and other sources that we may be in contact with or have access to. This Advisorywas prepared by the Strategic Communications Unit of Adfactors PR Lanka. For inquiries,contact sarah.muiz@adfactorspr.com

Bulletin

Trump’s Tariffs Hit Garment Makers in Bangladesh and Sri Lanka Hard

Employees sew garments inside a garment factory in Katunayake, near Colombo, Sri Lanka.Credit…Thilina Kaluthotage/ReutersThrough Covid, political chaos, and economic disarray, Sri Lanka and Bangladesh kept one industry central to their hopes of prosperity afloat: the manufacturing of ready-made garments, with the United States as their main market. Then came President Trump’s tariffs. The two countries are reeling after Sri Lanka was hit with 44 percent tariffs and Bangladesh subjected to 37 percent levies. Officials in both countries scrambled to contain panic among business leaders, who worried that they may no longer be able to compete with bigger manufacturing powers, and that their orders could shift to places with lower tariffs and greater industrial muscle. “We will have to write our obituary notice,” said Tuli Cooray, a consultant at the Joint Apparel Association Forum of Sri Lanka, an industry association. “Forty-four percent is no joke.” The Trump administration’s tariffs have hit countries at the heart of the global apparel industry especially hard. An analysis by William Blair, an equity research firm, showed that the countries that produce 85 percent of U.S. apparel imports faced an average tariff of 32 percent. Targeting the manufacturers not only upends the economies of these nations, but also adds to the burden of U.S. companies, analysts warned. William Blair said merchandise costs could go up by about 30 percent and American consumers may ultimately feel the pinch. Bangladesh sends more than $7bn of clothing to the U.S. every year. The country’s garment manufacturing industry makes up 80 percent of its total exports and employs more than four million people, mostly women. Bangladesh has one of the highest female work force participation rates in the region, which has helped lift a large section of the population out of poverty. The garment industry is crucial, as the country tries to stabilize its economy after widespread protests and violence last year toppled its autocratic leader. “Just as the world economy was starting to recover and we were seeing our sales in the U.S. increase, this kind of decision — a trade war, or a tariff war — has now posed a new challenge and uncertainty,” said Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association. “There are many garment factories in Bangladesh that work solely for the U.S. market — some with 80 percent, some even 100 percent. These factories have made large investments just for US orders,” he added. “This decision will put such businesses in danger.” In Sri Lanka, the garment industry employs more than 350,000 people, producing apparel for companies such as Nike and Victoria’s Secret. Garments make up about half of the country’s total exports, and the vast majority go to the U.S. After the country’s economy crashed in 2022, it has been slowly stabilizing with the help of aid from neighbors like India and a bailout from the International Monetary Fund. “We are trying to see if there is space for reduction before implementation on April 9 through discussions, especially considering the difficult situation we are in,” said Anil Jayantha Fernando, Sri Lanka’s deputy minister for economic development.

Bulletin

Sri Lanka’s Apparel industry responds to new U.S. tariffs; Engages Government on way forward

Author LBOPosted on April 3, 2025 | Apparel, Banking and Finance, Companies, Economy & Markets, Featured, Industry, Trade Sri Lanka’s apparel industry has expressed its concern over the Reciprocal Tariff policy announced by the U.S regime earlier today. The new tariffs proposed could significantly disrupt the country’s largest export sector and put thousands of jobs at risk. Following an announcement by U.S. President Donald Trump on April 2, a 10% baseline tariff on all imports will take effect from April 5, increasing to a 44% “reciprocal” tariff on Sri Lankan exports, starting April 9. “This tariff level is extremely high relative to our regional competitors,” said Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF). “Sri Lanka could very quickly see its share of US business move to countries with lower tariffs than Sri Lanka has”. The United States is Sri Lanka’s largest single-country apparel market, accounting for over 40% of the sector’s total exports, which exceeded USD 5.5 billion in 2023. “With tariffs coming into effect almost immediately, the impact will be swift and severe. Potentially, we could see the bulk of our U.S. business migrate to competitor markets,” Lawrence added. “This volume of business simply cannot be replaced through other markets.” The Government of Sri Lanka has already initiated consultations with the industry and other stakeholders to determine an appropriate course of action. “We are very appreciative of the immediate actions taken by the Government to discuss this situation are working very closely with the authorities to see how best we could address the concerns raised by the US Government, whilst staying within the limitations of Sri Lanka’songoing IMF programme,” said Lawrence. Despite this challenge, the apparel sector remains committed to transparency, ethical production, and sustainable value creation. “Our focus now is on engagement, agility, and ensuring Sri Lanka remains a trusted sourcing destination,” Lawrence said. “However, this situation is serious, and it must be addressed as a matter of national urgency.”

Bulletin

MAS Holdings to gain greater access to growing Indian market with expansions in Odisha, India

MAS Holdings, South Asia’s largest apparel manufacturer, marked a significant milestone in its global expansion by breaking ground for its first facility in the state of Odisha, India. This strategic initiative builds on MAS’ long-standing presence in India while strengthening its regional production capabilities and giving it a strong foothold to access the fast-growing Indian retail market. The ceremony was attended by Suren Fernando (GCEO of MAS Holdings), Malik Ahamadeen (CEO, MAS India), Shakthi Ranatunga (COO, MAS Holdings), Murad Rajudin (CEO MAS Fabric Park) while the Odisha Government was represented by Shri Subhendra Kumar Nayak, OAS, Special Secretary. MAS Holdings plans to begin apparel production at this facility in 2026. The plant will focus on creating value-added apparel products tailored for both the Indian and international markets. This move not only leverages the potential of India’s manufacturing landscape but also builds on MAS’ proven operational excellence long established in Sri Lanka. Once established, these operations are set to benefit the wider MAS group, whose majority workforce is within Sri Lanka, by offering the company access to new markets and stronger regional partnerships driving growth and new business opportunities. Speaking about the investment, Chief Executive Officer of MAS India, Malik Ahamadeen, said “MAS is excited to take this important step in creating a strong apparel ecosystem in the region. This is enabled by our extensive experience in managing holistic apparel industrial zones in Sri Lanka, bringing together key partners along the apparel supply chain.” Speaking at the ceremony Group Chief Executive Officer of MAS Holdings, Suren Fernando, stated that “This investment marks a significant milestone in MAS’ journey, and we are excited to leverage the vast business opportunities the venture presents. India has long been an integral part of our operations, and with 25 years of experience operating in India, we recognize the immense potential of the country’s manufacturing landscape, both for the global supply chain and the rapidly growing domestic retail sector.” Over the next ten years, MAS Holdings plans to develop the 60-acre site working together with its partners to build a fully-fledged apparel hub in Odisha.

Circulars

Fwd: Circular No : 79 /2025/ JAN / JAAF :Event Flyer Circulation – Invitation to “The Netherlands: The Gateway to Europe” Event – A Key Briefing for Exporters

Dear All I herewith forward you the invitation from the The European Chamber of Commerce of Sri Lanka inviting to The Netherlands: The Gateway to Europe” Event – A Key Briefing for Exporters. This is an excellent opportunity for all exporters to expand their horizons with the Netherlands. The members are interested for the above, please feel free to contact the details mentioned below. Yohan Lawrence Secretary General Dear Participant, We are pleased to invite you to attend an informative event titled “The Netherlands: The Gateway to Europe”, designed specifically for exporters like yourself who are involved in shipping goods to Europe. The primary objective of this event is to brief exporters on the significant benefits of routing cargo via Rotterdam, Europe’s largest and most efficient port. As a strategic gateway to the European market, Rotterdam offers exceptional logistical advantages, and the Government of the Netherlands provides various incentives to support businesses engaged in exporting to Europe. Event Details: Date: 30 January 2025 Time: 5 pm – 7 pm Location: Dukes Court 1, Cinnamon Lakeside Colombo By attending, you will gain valuable insights into the advantages of routing your exports via Rotterdam and learn about the various government benefits that can help optimize your supply chain and reduce costs. This session is an excellent opportunity for you to expand your knowledge, explore new possibilities for your business, and network with other professionals in the export community. To confirm your participation, please RSVP by Tuesday 28th. If you have any questions or require further information, feel free to contact us on +94777254804. We look forward to welcoming you to this insightful event!

Circulars

Fwd: Circular No : 80/2025/Feb/ JAAF – International Women Day

Dear all International Women’s Day 8th March 2025 As part of the JAAF PR campaign, we are looking at the possibility of featuring women in leadership positions in the sector. Ideally, we are looking at GM and upwards – someone managing operations or production would be super. If there are any women leaders in your organization that you would like to be featured please could you pass the details on to your respective association secretariat so they could collate the same and forward onto the JAAF PR team. Please could we have any responses by Friday 14th. Regards, Yohan Lawrence Secretary General Joint Apparel Association Forum 107, Hunupitiya Lake Road Colombo 2 Sri Lanka Tel: + 94 11 4528497, 4528494 Fax: +94 11 4542232 Web: www.jaafsl.com