JOINT APPAREL ASSOCIATION FORUM SRI LANKA (JAAFSL)
💰 The Economy
📰 Electricity tariff slashed by 22.5 percent
The Public Utilities Commission of Sri Lanka (PUCSL) announced a 22.5 percent electricity tariff revision with effect from 16 July. The decision was taken following the public consultation conducted recently. Accordingly, domestic tariff has been reduced by 27 percent, while religious places of worship, including hotels and industries have been reduced by 25 percent and 30 percent respectively.
Link: https://tinyurl.com/3w9de8rh
📰 20 percent price cut in goods and services likely ensuing electricity tariff revision
Following the revision of electricity prices, an approximate 20 percent reduction in the market’s goods and services prices is anticipated. The new electricity tariff will take effect on 16 July, with the next revision scheduled for October.
Link: https://tinyurl.com/e6mkmx8e
📰 *Sri Lanka manufacturing and services sectors expands in June *
Sri Lanka’s manufacturing and services sectors continued to expand in June, with expectations of a continued recovery in the economy, according to a Purchasing Managers’ Index compiled by the Central Bank of Sri Lanka (CBSL). Industry expectations for the next three months indicate an improvement, anticipating a gradual recovery in economic conditions.
Link: https://tinyurl.com/awsrff8u
📰 European Commission permits regional cumulation between Sri Lanka and Indonesia to increase Sri Lanka’s apparel exports to the European Union (EU) market
Based on a joint request from Sri Lanka and Indonesia, the European Commission made a landmark decision on 9 July, allowing regional cumulation between the two countries for selected textile and apparel products to be exported to the 27 EU member countries under the EU Generalised Scheme of Preferences (GSP). This decision will open new avenues to increase Sri Lanka’s apparel exports to the EU market.
Link: https://tinyurl.com/afhmv6nb
📰 Sri Lanka settles USD 60 million Iranian oil debt with tea
Sri Lanka Tea Board has announced that USD 60 million of the USD 251 million owed by Sri Lanka to Iran for fuel imports since 2011 has been paid through tea exports. This initiative follows a strategic agreement signed between the Sri Lankan and Iranian Governments to use tea exports as a method of settling the debt, the Ministry of Agriculture and Plantation Industries said in a statement. The agreement not only alleviates Sri Lanka’s financial burden but also strengthens trade ties between the two nations, the ministry highlighted, adding that it exemplifies how creative economic solutions can address financial challenges and enhance bilateral relations.
Link: https://tinyurl.com/mrt84mpb
📰 Survey by Verite Research indicates increased optimism on Sri Lanka’s economy
A survey by Verité Research, a Colombo-based think tank, indicates increased positivity about the Sri Lanka’s economy and approval of the incumbent Government. The survey found that the Government’s approval rating has tripled, reaching 24 percent in July, up from 7 percent in February 2024. Additionally, 28 percent of respondents rated the current economic conditions as either “good” or “excellent,” a significant rise from 9 percent in February 2024. The proportion of people who believe the country’s economic conditions are “getting better” has also tripled, with 30 percent of respondents expressing this view, compared to 9 percent in February 2024.
Link: https://tinyurl.com/2xkt88m9
⚖ Politics & Policy
📰 Election Commission to announce Presidential election date by end July
The Election Commission will announce the date for the Presidential election before the end of July, Commission Chairman R.M.A.L. Ratnayake said. He added that the timing aligns with the Constitution and the President’s Act. Nominations for the Presidential election will be accepted between 16 and 21, after issuing the poll notice.
Link: https://tinyurl.com/yrfemfxw
📰 Court dismisses Fundamental Rights (FR) petition to prevent holding Presidential Election
The Supreme Court (SC) has dismissed the FR petition filed seeking an order to prevent holding of the Presidential Election. This verdict was issued when the petition filed by Attorney-at-Law Aruna Laksiri was taken up for consideration on 15 July before a Supreme Court judge bench comprising Chief Justice Jayantha Jayasuriya. The petition argued that the 19th Amendment to the Constitution was not properly passed in Parliament and therefore called for a referendum to ensure its proper passage.
Link: https://tinyurl.com/3bpeywmd
📰 Cabinet approves amended water tariff policy and formula The Government’s approval was granted to implement the amended water tariff policy and amended water tariff formula in 2025. It has been ordered to forward the new tariff policy and formula, including the inclusion of required amendments, after having discussed it with all relevant parties.
Link: https://tinyurl.com/385w3srn
📰 Asian Development Bank (ADB) approves USD 100mn support for Power Sector Reforms in Sri Lanka
The ADB has approved USD 100 million policy-based loan to support and facilitate reforms aimed at enhancing the financial sustainability of the power sector in Sri Lanka. The Power Sector Reforms and Financial Sustainability Program will complement the International Monetary Fund (IMF)’s Extended Fund Facility arrangement and bolster the operational efficiency and competitiveness of the country’s power sector. The program will help create a conducive environment for private investments, boost renewable energy development, and modernise power grids.
Link: https://tinyurl.com/5n7kfurz
📰 Sri Lanka reaches USD 1 billion target with 35 investment agreements entered in 2024
The Ministry of Investment Promotion has successfully reached the target of attracting investments totaling USD 1 billion, as set by the Ministry of Finance. Accordingly, Sri Lanka has entered into 35 investment agreements this year.
Link: https://tinyurl.com/2f2ze3jd
📰 The United States (US) continues to support economic reforms in Sri Lanka
The United States will continue to support Sri Lanka’s debt restructuring and economic and governance reform agenda while being committed to encouraging private sector investments, the US Department of State said. Accordingly, the joint statement from the fifth session of the United States-Sri Lanka Partnership Dialogue, stated that the US expresses its commitment to supporting Sri Lanka’s progress in its IMF programme by encouraging private-sector investment, enhancing its capacity to combat corruption, and addressing food insecurity for vulnerable populations.
Link: https://tinyurl.com/msksh3fm
⁉ What you need to know
📰 Joint Apparel Association Forum (JAAF) welcomes electricity tariffs reduction and calls for continued energy policy reforms
The JAAF welcomed the recent decision by the PUCSL to implement a 25.3 percent reduction in industrial electricity tariffs, parallel to a 27 percent reduction for domestic customers and a 22.5 percent overall reduction effective from July 16, 2024. In addition to easing the burden on retail customers, JAAF commended the PUCSL decision for providing much-needed relief to Sri Lanka’s apparel and export industries, enhancing competitiveness and supporting economic recovery.
Link: https://tinyurl.com/y5wjp4y2
📰 Hirdaramani Group Reinforces Commitment to Sri Lanka’s Apparel Sector with Groundbreaking Investment in New Textile Plant, ‘Mihila Tex’
Hirdaramani Group announced its latest milestone in advancing sustainable apparel production with a significant LKR 10 billion investment in a cutting-edge new textile mill, ‘Mihila Tex’ in Pannala, Sri Lanka. This state-of-the-art facility will play a pivotal role in reshaping the future of the apparel industry and bolstering Sri Lanka’s position as a sustainable manufacturing hub.
Link: https://tinyurl.com/7txrw7c5
📰 Apparel industry honored at Presidential Environmental Awards 2024
Hayleys Fabric, Neboda, and CKT Apparel, Agalawatta, have been honored with the Gold award in the Textile and Textile Processing Industry category at the Presidential Environmental Awards 2024. MAS Active – Linea Intimo, Malwana, MAS Active Shadeline Division, and Sithro Garment Finishing Company, Ja Ela, received the Silver award. Hirdaramani Industries – Washing Plant Avissawella, Brandix Apparel Solution, Rambukkana, and MAS Active Contourline Division, Kandy, secured the Bronze award. Additionally, Trischel Fabrics (PVT) Ltd, Thulhiriya, MAS Fabrics – Intimo Division, Thulhiriya, Jay Jay Mills Lanka – Expansion Unit II, Matara, Hirdaramani Industries, Kuruwita, and MAS Active – Synergy Division, Avissawella, were recognized with Merit awards. These prestigious accolades underscore the apparel industry’s steadfast commitment to environmental sustainability, distinguishing it among nearly 1,000 applicants nationwide. The award’s selection process focused on companies’ dedication to environmental stewardship.
Link: https://tinyurl.com/bde787kx
📰 Global textiles sourcing expo ‘Intex in Sri Lanka’ aims USD 8 billion apparel export target by 2025
The 10th edition of the premier international textile sourcing platform in South Asia, Intex in Sri Lanka will be held from 7 – 9 August across 4 halls at the Bandaranaike Memorial International Conference Hall (BMICH) to promote the industry in achieving the export target of USD 8 billion by 2025.
Link: https://tinyurl.com/3bx32t3z
📰 Star Garments secures USD 15 million International Finance Corporation (IFC) loan
The USD 15 million loan from the IFC to Star Garments will be used to build a greenfield clothing factory in Togo that is expected to create 4,520 direct and indirect jobs, especially for women, and generate significant export-oriented value addition by 2030. It marks the Charles Komar and Sons and its subsidiary Star Garments’ first venture into Africa.
Link: https://tinyurl.com/33ea2xhp
Disclaimer – This Advisory is intended for circulation among JAAF stakeholders only. Please do not circulate or share on social media.
This Advisory, written for our partners interested in developments in Sri Lanka against the backdrop of the current crisis, is an update on the one issued last week. This document summarises results covering significant political and economic events. The Advisory includes economic, political, social and governance perspectives. It draws on news reports, analyses, Government announcements and documents, and other sources that we may be in contact with or have access to.
This Advisory was prepared by the Strategic Communications Unit of Adfactors PR Lanka.
For inquiries, contact sarah.muiz@adfactorspr.com