💰 The Economy
📰 IMF staff concludes visit to Sri Lanka
An International Monetary Fund (IMF) team led by Evan Papageorgiou visited Colombo from April
3 to 11, 2025. In a statement, the IMF stated that the staff team had very productive discussions
with the Sri Lankan authorities on economic performance, and policies underpinning the Fourth
Review under the IMF Extended Fund Facility (EFF) arrangement.
Link: https://tinyurl.com/3xdnaapa

📰 Early April brings robust increase in Sri Lanka’s tourism sector
Sri Lanka’s tourism industry continues its strong growth in 2025, recording 56,567 arrivals in
the first nine days of April—a 12 percent increase year-on-year (YoY). Cumulative arrivals for
the year have reached 778,843, reflecting a 13.5 percent YoY growth.
Link: https://tinyurl.com/24jyv35p

📰 Sri Lanka remittances surge 21.1 percent in March 2025 to reach USD 693.3 million
Sri Lanka’s remittances rose by 21.1 percent YoY to USD 693.3 million in March 2025, nearing a
record high, driven by increased use of official banking channels by overseas workers.
Link: https://tinyurl.com/2xfxapjx

⚖ Politics & Policy
📰 Sri Lanka ready to scrap para tariffs on imports from the US
The Government of Sri Lanka has reportedly proposed to scrap para tariffs on imports from the
U.S. in its attempt to get President Donald Trump’s reciprocal tariffs reduced. Moreover, the
Government is also said to be exploring the possibility of importing fuel from the U.S. companies
to reduce the bilateral trade gap, which is highly in favour of Sri Lanka. A high level Government
delegation is also scheduled to visit Washington DC later this month to attend the spring
meetings of the World Bank and the IMF, and on the sidelines of these events, it is reported
that the delegation will seek discussions with the U.S. authorities on the tariff issue.
Link: https://tinyurl.com/bdhda8r9

📰 Simplified VAT Scheme will be abolished with effect from October 1, 2025
The Value Added Tax (Amendment) Act No. 04 of 2025, has been certified on April 11, 2025 and
important changes from the amendment Act to the Value Added Tax Act, No. 14 of 2002 includes
that the Simplified VAT Scheme will be abolished with effect from October 1, 2025, and
replaced by a Risk-Based Refund Scheme.
Link: https://tinyurl.com/czwnjp2k

📰 Government extends SME relief as parate suspension ends
With the expiration of the parate execution moratorium on 31 March, the Government has
reinforced its commitment to revitalising small and medium enterprises (SMEs) through
extended relief measures and a LKR 20 billion financial support package. The relief period has
now been extended until 31 December, for SMEs with borrowings below LKR 25 million, provided
they engage with banks before the March deadline.
Link: https://tinyurl.com/y8vux7zx

📰 Committee appointed to repeal Prevention of Terrorism Act
A special committee has been appointed to draft legislation to repeal the Prevention of
Terrorism Act (PTA), the Ministry of Justice announced. President’s Counsel Rienzie
Arsecularatne has been named as the Chairman of the committee. Currently, the committee
has been tasked with gathering public opinion and consulting civil society organizations until
early May.
Link: https://tinyurl.com/4v2jkzhc

📰 EU team to arrive in Sri Lanka to review GSP+
A team from the European Union is scheduled to arrive in Sri Lanka in the latter part of April
as a scheduled review of the Generalised Scheme of Preferences Plus (GSP+) trade
concession. The EU monitoring mission in April 2025 may closely monitor the perspective and
actions of the new administration, focusing on their strategies and policies. While the mission
will primarily assess Sri Lanka’s compliance with GSP+ conditions, it is also expected to
scrutinise the steps taken by the Government to address ongoing concerns. The success of these
policy reforms, alongside their practical implementation, could be critical in determining Sri
Lanka’s continued eligibility for GSP+ benefits.
Link: https://tinyurl.com/4ysfxppf

!? What you need to know
📰 Apparel sector commends Government for proactive leadership on US tariff issue
The Joint Apparel Association Forum (JAAF) commended the Government of Sri Lanka and
President Anura Kumara Dissanayake for their swift and decisive response to the recent
announcement of U.S. tariffs. JAAF acknowledged President Dissanayake’s timely engagement
with the U.S. Trade Representative and his formal communication with President Donald Trump
as instrumental in protecting Sri Lanka’s apparel industry.
Link: https://tinyurl.com/wrzhz7pe

📰 Sri Lanka offers to cut trade deficit with the US and increase imports
Sri Lankan authorities have signaled its inclination to reduce the trade deficit with the United
States and lower tariffs on imports, with negotiations expected to commence next week. A
committee comprising key representatives from the apparel and rubber sectors, along with
Government officials and bureaucrats, has been formed to lead discussions. According to Joint
Apparel Association Forum (JAAF) Deputy Chairman Felix Fernando, the U.S. has responded
positively, with its Representative for Asia expressing openness to tariff negotiations. Fernando
also confirmed Sri Lanka’s commitment to taking steps to narrow the trade gap and ease import
duties.
Link: https://tinyurl.com/2xhcrk4v

Disclaimer – This Advisory is intended for circulation among JAAF stakeholders only. Please do
not circulate or share on social media. The Advisory includes economic, political, social and
governance perspectives. This Advisory was prepared by the Strategic Communications Unit of
Adfactors PR Lanka. For inquiries, contact sarah.muiz@adfactorspr.com