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💰 The Economy📰 Overnight Policy Rate further reduced by the Central Bank of Sri Lanka (CBSL)The Monetary Policy Board has reduced the Overnight Policy Rate (OPR) by 25 basis points to7.75 percent, further easing the monetary policy stance. The decision, aimed at guidinginflation towards the 5 percent target amid global uncertainties and subdued domesticinflationary pressures, was made after careful consideration of both local and internationaldevelopments.Link: https://tinyurl.com/yr76w96f 📰 National consumer prices decline to 0.8 percent in AprilInflation, as measured by the National Consumer Price Index (NCPI), recorded a year-on-yeardecline of 0.8 percent in April, following a 1.9 percent decrease in March 2025. On a monthlybasis, prices increased by 0.2 percent in April, reversing the 0.1 percent decline observed inMarch, primarily due to the uptick in food prices.Link: https://tinyurl.com/yj76r245 📰 Sri Lanka attracts USD 197 million in Q1 FDIsSri Lanka has earned USD 197 million through foreign direct investments (FDIs) in Q1 of 2025,while the Government expects tourism revenue to reach USD 4 billion, as per a statement bythe Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma. Furthermore, theGovernment aims to attract USD 2 billion in FDIs in 2025, alongside planned investments totalingUSD 879 million from domestic investors.Link: https://tinyurl.com/3mxev546 ⚖ Politics & Policy📰 Sri Lanka reiterates importance of maintaining lasting peace in Indian Ocean regionDelivering Sri Lanka’s opening statement at the 24th Meeting of the Indian Ocean RimAssociation (IORA) Council of Ministers, Minister of Foreign Affairs, Foreign Employment andTourism, Vijitha Herath reaffirmed Sri Lanka’s commitment to fostering a cohesive and inclusive region. Minister Herath also underscored the need for collaborative action to ensure the long-term sustainability, security, and prosperity of the Indian Ocean. Link: https://tinyurl.com/232kwfzf 📰 CBSL Chief dismisses likelihood of 44 percent tariff on Sri Lankan exports amid US trade tensionsCBSL Governor Dr. Nandalal Weerasinghe stated that the imposition of a 44 percent reciprocaltariff on Sri Lankan exports to the US is unlikely, citing ongoing diplomatic engagement andrecent developments in global trade policy. He made these remarks at a public lectureorganised by the CBSL titled ‘State of the Economy as Reflected in the Annual Economic Review2024’ on 16 May.Link: https://tinyurl.com/347ps8m9 📰 BOI seeks diplomatic support to boost FDI inflowsThe Board of Investment (BOI) Chairman, Arjuna Herath, and senior officials met withdesignated ambassadors and diplomatic representatives of the Sri Lankan foreign service todiscuss strategies for attracting more Foreign Direct Investment (FDI) into Sri Lanka.Link: https://tinyurl.com/2zm7nnn6 📰 CEB proposes second electricity tariff revision for 2025The Ceylon Electricity Board (CEB) has formally submitted a proposal for a second electricitytariff revision for the year 2025, marking another adjustment to the country’s power pricingstructure within the year. In response, the Public Utilities Commission of Sri Lanka (PUCSL)announced plans to seek public input on the proposed revision through a series of provincial-level consultations, prior to arriving at a final decision. Link: https://tinyurl.com/mr4aaddm 📰 Labour Department resumes services following temporary suspensionThe Department of Labour has resumed all public services, including the disbursement ofmember funds, following a temporary suspension due to essential computer networkmaintenance.Link: https://tinyurl.com/yrfzmzfr !? What you need to know📰 Teejay Group closes FY 2024/25 with a remarkable Q4 performanceTeejay Group reported a strong financial performance for the year ended 31 March, 2025,recording a Profit After Tax of LKR 2.8 billion, which is a significant YoY (year-on-year) growthof 152 percent.Link: https://tinyurl.com/ye7jddyd 📰 Hameedia launches Sri Lanka’s first-ever online tailoring platformSri Lanka’s premier menswear brand, Hameedia has officially launched ‘We Create’—thecountry’s first digital tailoring platform, accessible through www.envoylondontailorstore.com.Link: https://tinyurl.com/5n8wj4na 📰 Ceylon Chamber of Commerce announces Sri Lanka Economic and Investment Summit 2025The Ceylon Chamber of Commerce has announced the Sri Lanka Economic and InvestmentSummit 2025, scheduled to be held from 2–3 December at the Shangri-La Hotel, Colombo. Underthe theme “Gateway to Growth – Asia’s Emerging Opportunity,” the summit will examinestrategies to unlock the country’s economic potential through reform, export growth, qualityinvestment, and regional integration. The agenda will address macroeconomic trends andsectoral priorities, including green infrastructure, education, logistics, tourism, and exportdiversification.Link: https://tinyurl.com/4jpautz9 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

💰 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

💰 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

💰 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