Weekly Updates

💰 The Economy📰 IMF Executive Board approves Sri Lanka’s fourth reviewThe IMF Executive Board has approved the Fourth Review of Sri Lanka’s 48-month ExtendedFund Facility (EFF) arrangement, granting the country access to approximately USD 350 millionin additional financing. This brings total disbursements under the program to around USD 1.74billion.Link: https://tinyurl.com/bdxbcb94 📰 Over 1.1 million tourist arrivals recorded in the first half of 2025The total number of tourist arrivals in the first half of 2025 stands at 1,168,044, the Sri LankaTourism Development Authority (SLTDA) reported. In June alone, 138,241 tourists visited thecountry, marking a 21.8 percent increase compared to June 2024.Link: https://tinyurl.com/3druf9ry ⚖ Politics & Policy📰 Government anticipates relief on US tariffs ahead of 9 July deadlineCabinet Spokesman Dr. Nalinda Jayatissa stated that the Government is hopeful of securingconcessions to the reciprocal tariffs announced by US President Donald Trump, ahead of theirscheduled implementation on July 9. He noted that ongoing diplomatic efforts may result infavorable outcomes for Sri Lanka and local businesses. Meanwhile, President Trump hasannounced that the US would charge 20 percent tariffs on imports from Vietnam under a new tradedeal reached during last-minute negotiations.Link: https://tinyurl.com/2wurusmvhttps://tinyurl.com/yvjvffpc 📰 Government to present 2026 Appropriation Bill to Parliament in OctoberThe Cabinet has approved the proposal to present the Appropriation Bill for 2026 to Parliamentin October 2025, with the second reading (budget speech) scheduled for November, followedby the third reading, and budget debate in November and December.Link: https://tinyurl.com/2wkacxha 📰 Indian companies explore investment opportunities in Sri LankaIndian entrepreneurs state that they are currently directing their attention towards newinvestment prospects in Sri Lanka, particularly in sectors like energy, infrastructure, the digitaleconomy, tourism and agriculture, as well as on enhancing entrepreneurial capacity. Adelegation of around 20 Indian entrepreneurs, comprising heads of several prominent Indiancompanies, is currently engaged in an active programme in Sri Lanka, coordinated by theConfederation of Indian Industry (CII), with the aim of further developing existing investmentopportunities and exploring new prospects. These comments were expressed during thedelegation’s meeting with President Anura Kumara Disanayake on 01 July at the PresidentialSecretariat.Link: https://tinyurl.com/mzsjvf7x 📰 Sri Lanka and Australia deepen trade collaboration through seminar on export promotion best practicesThe Sri Lanka Export Development Board (EDB), in collaboration with the Australian HighCommission, the Australian Trade and Investment Commission (Austrade), and the Departmentof Foreign Affairs and Trade (DFAT), hosted a high-level seminar titled “Leveraging AustralianBest Practices in Export Promotion” on 30 June in Colombo. Held under the Australia-Sri LankaTrade and Investment Framework Arrangement (TIFA), the seminar convened key stakeholdersfrom Government, trade, and industry to examine how Australia’s export strategies couldinform and enhance Sri Lanka’s export development efforts.Link: https://tinyurl.com/28dz922v 📰 Ambassador of Türkiye holds bilateral trade discussions with EDB officialsOn 12 June, Türkiye’s Ambassador Semih Lütfü Turgut met with the Export Development Board(EDB) of Sri Lanka to discuss strengthening bilateral trade and investment ties. The meetingfocused on enhancing economic cooperation, with an emphasis on Sri Lanka’s key exports liketea, as well as exploring trade fairs and market opportunities in Türkiye. The discussions alsocovered investment prospects in key sectors such as textile and apparel, gems and jewelry,agriculture, fisheries, rubber, ICT, and logistics.Link: https://tinyurl.com/2vc9azud ⁉ What you need to know📰 JAAF statement on Sri Lanka’s apparel export performance for May 2025Sri Lanka’s apparel exports in May 2025 remained relatively flat with a slight dip of 0.63 percentcompared to the same month last year, totaling USD 365.08 million. While shipments to the EUgrew by 5.15 percent and exports to other markets rose sharply by 11.1 percent, this growthwas offset by contractions in key markets. Exports to the USA and UK declined by 7.59 percentand 6.81 percent respectively, reflecting ongoing demand volatility in Western consumermarkets.Link: https://tinyurl.com/2w7xdtft 📰 MAS honoured at the CIMA-JXG Pinnacle Awards 2025MAS Holdings was recently honoured as one of the most distinguished organisations at the 2025CIMA-JXG Pinnacle Awards, receiving Gold Awards in three key categories: Chief FinancialOfficer of the Year (Individual), DEI Champion of the Year (Company), and ESG/SustainabilityChampion of the Year (Company). Hirdaramani International Exports Ltd was awarded Silver inthe ESG/Sustainability category, further highlighting the apparel sector’s commitment toresponsible business practices.Link: https://tinyurl.com/ywhnnct3 📰 UK unveils 2026 Trade Strategy to boost developing economiesThe UK is set to launch its new Trade Strategy this week, with a strong focus on supportingdeveloping economies. Coming into effect in 2026, the updated scheme will expand cumulationprovisions across Asia and Africa. It will also offer greater flexibility for sectors like apparel,allowing eligible countries to source raw materials from a broader range of partner nationsunder the scheme.Link: https://tinyurl.com/5c8w8hrm 📰 Sri Lanka Apparel Exporters Association to host awareness session for apparel exportersThe Sri Lanka Apparel Exporters Association will host an awareness session on the CorporateSustainability Due Diligence Directive (CSDDD) for apparel exporters on 9 July at JetwingColombo.Link: https://tinyurl.com/mvv53muj 📰 Industry awaits Court outcome on contested wage amendment billThe bill to amend the National Minimum Wage and the Budgetary Relief Allowances, whichincludes proposed increases to the minimum wage and adjustments to the relief allowances asapproved by the National Labour Advisory Council (NLAC), has been challenged in court bycertain trade unions. The Supreme Court has determined that the proposed legislation isinconsistent with the Constitution. The industry now awaits the final outcome of this matter.Link: https://tinyurl.com/3tjnrmm8 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  

💰 The Economy📰 Tourism Sector records continued growth with 90,000 arrivals in JuneAccording to the Sri Lanka Tourism Development Authority (SLTDA), 93,486 tourists arrived inthe country in June 2025, bringing the total number of arrivals for the year to 1,123,289. Ofthese, 231,564 were from India, 111,940 from Russia, and 103,990 from the United Kingdom.Link: https://tinyurl.com/yc7765f6 📰 BOI announces significant surge in FDIs in 1Q amid stable investment climateThe Board of Investment (BOI) reported an increase in Foreign Direct Investment (FDI) comparedto the previous year, reflecting a stable and investor-friendly economic environment. As ofJune 2025, the BOI had received 79 investment proposals, comprising 40 greenfield projectsand 39 proposals for the expansion of existing ventures. The total estimated value of theseinvestments is USD 4,669 million, with USD 3,899 million in foreign investment, and USD 770million in local investment. This represents an 18 percent increase compared to the proposalsreceived during the same period in 2024.Link: https://tinyurl.com/ybm7d8au ⚖ Politics & Policy📰 Government to make special announcement on fiscal strategy on 30 JuneThe Government is set to make a special announcement on its fiscal strategy in Parliament on30 June, according to a statement released by the Office of the Leader of the House.Link: https://tinyurl.com/hrmdsnba 📰 CoPF approves stamp duty hike, lifting key import bansThe Committee on Public Finance (CoPF) chaired by MP Dr. Harsha de Silva recently approveda series of significant fiscal measures, including an increase in stamp duty and the phasedrelaxation of longstanding import restrictions, to boost State revenue and ease pressure on keyindustries. The Committee also endorsed two regulatory changes under the Import and Export(Control) Act, No. 1 of 1969. These regulations propose to lift restrictions that have been inplace since 2020, marking a gradual shift from protectionist policies towards more open trade.Link: https://tinyurl.com/mvjxxm3z 📰 Cabinet sub-committee appointed to review challenges posed by Middle East conflictA Cabinet sub-committees has been appointed to submit appropriate recommendations afterclosely studying the conflict situation in the Middle East region. The committee has been taskedwith reviewing all fields that are affected, the extent of the impact, and propose actions thatshould be taken in this regard.Link: https://tinyurl.com/2e6ush8m 📰 Deputy Foreign Minister Arun Hemachandra addresses China-South Asia Cooperation ForumDeputy Minister of Foreign Affairs and Foreign Employment, Arun Hemachandra, participatedin the Ninth China-South Asia Exposition and the Sixth China-South Asia Cooperation Forum(CSACF) held recently in Kunming, Yunnan Province, China. Addressing the Forum, he stressedthe importance of regional unity and shared development, and invited investors and partners from China, and the region to explore opportunities in infrastructure, technology, green energy,agriculture, tourism, and manufacturing.Link: https://tinyurl.com/3sk8wbd7 📰 Parliamentary meeting focuses on resolving district-level industry challengesA special discussion regarding the coordination of the Ministry of Industries’ operations, anddistrict-level activities was recently held at the Parliament under the leadership of Industriesand Entrepreneurship Development Minister Sunil Handunneththi and Deputy MinisterChathuranga Abeysinghe. The main objective of this meeting was to establish mechanisms toaddress district-specific issues under the mediation of 25 designated MPs.Link: https://tinyurl.com/24h4kd2v 📰 Parliament Committee eyes structural reforms to cut electricity generation costsThe Sectoral Oversight Committee on Infrastructure and Strategic Development recentlydiscussed deep structural reforms to the country’s electricity sector, as rising generation costsand integration challenges for renewable energy sources continue to pressure the national grid.The Committee highlighted the need to adopt strategies that could reduce electricitygeneration costs and to proceed according to a long-term plan.Link: https://tinyurl.com/f473pub6 !? What you need to know📰 EDB partners with SDCSL to strengthen SME exporters’ commitment to sustainability and transparencyThe Sri Lanka Export Development Board (EDB) recently convened a high-level meeting toexplore strategic collaboration for the implementation of the newly launched ‘Initiative forTextile Sustainability Benchmarking’ (ITSB), a transformative platform aimed at elevatingsustainability standards across Sri Lanka’s textile and apparel sector. The ITSB initiative is ajoint effort by the Global Reporting Initiative (GRI), the Sustainable Development Council of SriLanka (SDCSL), and the Joint Apparel Association Forum (JAAF), with support from theGovernment of Sweden. It seeks to integrate internationally recognized sustainability standardsthroughout Sri Lanka’s textile value chain to promote transparency, accountability, and long-term global competitiveness. Link: https://tinyurl.com/mrxp2bwf 📰 Star Garments officially inaugurates state-of-the-art manufacturing facility in TogoStar Garments Group, a leading Sri Lankan apparel manufacturer and a subsidiary of CharlesKomar & Sons, has officially inaugurated its new textile manufacturing facility at the AdétikopéIndustrial Platform in Togo. The event was held under the patronage of Togo’s President, FaureGnassingbé, marking a significant development for both the company and the West Africantextile sector.Link: https://tinyurl.com/46v6uh39 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 economy expands 4.8 percent in 1Q of 2025 on robust industrial activitiesSri Lanka’s economy expanded by 4.8 percent in the first quarter ended in March 2025,extending the recovery, which set off in the third quarter of 2023, the data released from theCensus and Statistics Department indicated.Link: https://tinyurl.com/mknj6j5z 📰 Sri Lanka and France sign bilateral agreement on debt restructuringOn June 16, Sri Lanka and France formalized a bilateral agreement as part of Sri Lanka’s effortsto restructure its external debt. This agreement marks a significant milestone in achieving debtsustainability, according to a statement from the Ministry of Finance. The agreement was signedby Mahinda Siriwardana, Secretary to the Finance Ministry, on behalf of Sri Lanka, and byWilliam Roos, Assistant Secretary for Multilateral Affairs, Trade, and Development Policies,representing France’s Directorate-General of the Treasury.Link: https://tinyurl.com/57t43h9x Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an indexvalue of 55.5 in May 2025, indicating an expansion in manufacturing activities. All sub-indicesrebounded above the neutral threshold during the month, indicating a recovery from theseasonal slowdown recorded in April 2025.Link: https://tinyurl.com/5bwb6528 ⚖ Politics & Policy📰 President states Sri Lanka will lay groundwork for a self-reliant economy by 2028 Sri Lanka’s ultimate goal is to restore national sovereignty through economic stability and self-reliance, President Anura Kumara Dissanayake stated during a keynote address at the international conference titled ‘Sri Lanka’s Road to Recovery: Debt and Governance’, held inColombo recently. He further stated that Sri Lanka would lay the groundwork for a self-relianteconomy by 2028.Link: https://tinyurl.com/yc6mkjys 📰 President meets IMF Deputy Managing Director Dr. Gita GopinathPresident Anura Kumara Dissanayake met with the Deputy Managing Director of theInternational Monetary Fund (IMF), Dr. Gita Gopinath, and the delegation on 16 June at thePresidential Secretariat. During the meeting, Dr. Gopinath stated that they held a discussionfocused on Sri Lanka’s strong performance on economic reforms, and the importance ofmaintaining the momentum. Taking to ‘X’, Dr. Gopinath further noted that continuedcommitment to these reforms is vital for lasting stability and prosperity for all Sri Lankans.Link: https://tinyurl.com/3rhb7y4z 📰 Ten new projects planned under ‘Clean Sri Lanka’ initiativeA range of new projects for the 2025 financial year has been launched under the ‘Clean SriLanka’ programme, which is a Government initiative aimed at promoting the vision of “A ThrivingNation, A Beautiful Life.” A progress review meeting for these projects was conducted on 17 June at the Presidential Secretariat, with the session led by Dr. Nandika Sanath Kumanayake,Secretary to the President.Link: https://tinyurl.com/4ebnfw4r 📰 Ceylon Chamber of Commerce hosts business dialogue with visiting DCCI delegation from BangladeshThe Ceylon Chamber of Commerce, together with the Chamber’s Sri Lanka-Bangladesh BusinessCouncil (SLBBC), at the invitation of the Sri Lanka High Commission in Bangladesh, hosted ahigh-level Business Dialogue with a visiting delegation from the Dhaka Chamber of Commerceand Industry (DCCI), Bangladesh, on 17 June at the Hilton Colombo Residences. A significantaspect of the day was the signing of a Memorandum of Understanding (MoU) between the DhakaChamber and the Ceylon Chamber of Commerce, aimed at fostering bilateral trade andinvestment, and enhancing private sector cooperation.Link: https://tinyurl.com/3e2njz53 !? What you need to know📰 Cargills in collaboration with MAS Foundation for Change expands efforts to combat plastic pollutionIn celebration of World Environment Day, Cargills Food and Beverage Limited, together with itsbrands KIST and KNUCKLES, has taken another step towards environmental protection with theinstallation of its second Ocean Strainer TM in Wanathamulla. This initiative, implemented incollaboration with the MAS Foundation for Change, aligns with this year’s global theme ‘EndPlastic Pollution’.Link: https://tinyurl.com/mwt3z7bj 📰 Sri Lanka apparel gains momentum through social complianceSri Lanka’s apparel sector is gaining new momentum through a renewed focus on socialcompliance, highlighted by a recently concluded GTEX Workshop held in Colombo. Theworkshop was held under the Global Textiles and Clothing Programme (GTEX II), which is fundedby Switzerland’s State Secretariat for Economic Affairs (SECO) and the Swedish InternationalDevelopment Cooperation Agency (SIDA), in partnership with the Export Development Board(EDB) and International Trade Centre (ITC). Key industry representatives, including ITC’s Headof Textiles Matthias Knappe, Swiss Embassy Deputy Head Olivier Praz, EDB Chairman MangalaWijesinghe, and Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence,emphasized the vital role of compliance in maintaining global market competitiveness.Link: https://tinyurl.com/mr45vwx7 📰 Singapore’s Q Collection expands to Sri Lanka with Hela partnershipQ Collection Ltd., a Singapore-based company, has entered Sri Lanka’s apparel manufacturingsector with strategic backing from Hela Apparel Holdings PLC. As part of this move, Q Collectionhas taken over operational control of Jinadasa Bennett Ltd., a subsidiary of the Hela Group,with the acquisition of funds and assets traced back to the Hela Group.Link: https://tinyurl.com/2tmxcrwa 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. Advisory was prepared by the Strategic Communications Unit ofAdfactors PR Lanka. For inquiries, contact sarah.muiz@adfactorspr.com  

💰 The Economy📰 Sri Lanka’s exports surge 6 percent to USD 5.5 billion in first four months of 2025The Sri Lanka Export Development Board (EDB) states that during the first four months of 2025,the country’s export earnings have increased to USD 5.5 billion. This indicates a 6.09 percentincrease compared to the same period in 2024.Link: https://tinyurl.com/zkwcefue 📰 Tourist arrivals to Sri Lanka surpass 1 million in 2025According to the latest data from the Sri Lanka Tourism Development Authority (SLTDA),1,006,097 foreign nationals arrived in the country as of 25 May 2025. The SLTDA highlightedthat, unlike in 2024 when the one-million mark was reached in June, this milestone has beenachieved within the first five months of 2025. Additionally, 109,213 tourist arrivals wererecorded during the first 25 days of May.Link: https://tinyurl.com/4wwvmj3w ⚖ Politics & Policy📰 Ministry of Labour summons stakeholders over Katunayake apparel factory closureA special discussion was held at the Ministry of Labour, chaired by Deputy Minister of LabourMahinda Jayasinghe, to address the sudden closure of the ‘NEXT’ apparel factory in theKatunayake Free Trade Zone (FTZ). Following preliminary discussions, the CommissionerGeneral of Labour Nadeeka Wataliyadda confirmed that the Company’s management as well asunion representatives would be summoned on 30 May to determine appropriate action underlabour regulations.Link: https://tinyurl.com/27ex7z4s 📰 Sri Lankan delegation to visit US for second round of tariff discussion A high-level Sri Lankan delegation is scheduled to engage in discussions in Washington on tariff-related matters, following an invitation extended by the Office of the United States Trade Representative (USTR), the Office of President Anura Kumara Dissanayake announced on 23May. This meeting marks the second in-person engagement as part of ongoing efforts to enhancebilateral trade relations between Sri Lanka and the United States.Link: https://tinyurl.com/2ye93rpa 📰 Sri Lanka and China to sign deal to strengthen Small and Medium-sized EnterprisesSri Lanka and China are set to sign a Memorandum of Understanding (MoU) this week tostrengthen bilateral cooperation in support of Small and Medium-sized Enterprises (SMEs).Cabinet Spokesman and Media Minister Dr. Nalinda Jayatissa announced that the Cabinet hasapproved the establishment of a joint working group to facilitate and promote smootherbilateral trade between the two countries.Link: https://tinyurl.com/4dcx2w4x 📰 UK trade envoy set to meet Government officials to discuss economic reform and investment opportunitiesThe UK Prime Minister’s Trade Envoy for Sri Lanka, Lord Hannett of Everton, is undertaking anofficial visit to Colombo from 25 – 28 May. During the visit, Lord Hannett is scheduled to hold high-level discussions with key Government officials, including representatives of the ExportDevelopment Board (EDB).Link: https://tinyurl.com/3k97w4wb 📰 President Anura Kumara Dissanayake prioritizes export-led economic growthDemonstrating a clear commitment to accelerating export growth, President Anura KumaraDissanayake convened a high-level meeting with senior Government officials and private sectorrepresentatives to identify key challenges and formulate actionable solutions. The discussionfocused on the Government’s strategic direction to enhance domestic production capabilitiesand advance Sri Lanka’s transition towards an export-oriented economy.Link: https://tinyurl.com/5n6x9ajw 📰 Sri Lanka welcomes China’s Minister of Commerce for high-level discussionsChina’s Minister of Commerce, Wang Wentao, arrived in Colombo on 28 May, accompanied bya high-level business delegation comprising 115 representatives from 77 Chinese companies.During his visit, Minister Wang is scheduled to deliver the keynote address at a high-profilebusiness forum and hold meetings with the President, senior Government leaders, and keyCabinet Ministers.Link: https://tinyurl.com/4e7mve2v !? What you need to know📰 Apparel exports gain positive momentum in AprilSri Lanka’s apparel exports recorded a strong performance in April, with total exports rising by15.14 percent compared to the same month last year, according to the Joint Apparel AssociationForum (JAAF).Link: https://tinyurl.com/5v8bswcd 📰 NEXT closure highlights urgent need for cost reformsFollowing the sudden closure of NEXT Manufacturing’s production facility in the KatunayakeExport Processing Zone, JAAF, has called for urgent and collaborative action within the industryto address the rising operational costs threatening the sector’s long-term sustainability. JAAFSecretary General Yohan Lawrence reaffirmed the Forum’s position on the need to align localutility and labour costs with regional benchmarks to preserve Sri Lanka’s competitiveness inthe global apparel industry.Link: https://tinyurl.com/5936muvf 📰 Stakeholders validate apparel curriculum for persons with disabilitiesA diverse group of stakeholders from Sri Lanka’s apparel sector, vocational training institutions,Government agencies, disability organizations, and international development partnersconvened at the NH Collection Colombo recently for a national workshop to validate an inclusiveapparel manufacturing curriculum for persons with disabilities (PwDs). Titled ‘InclusiveThreads: Validating Apparel Manufacturing Curriculum at Vocational Training Institutes’, theworkshop marked a significant milestone in an ILO-supported initiative to promote inclusiveskills development and decent work.Link: https://tinyurl.com/4hsb5xsb 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📰 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