💰 The Economy
📰 The International Monetary Fund (IMF) approves Second Review
The IMF has approved the Second Review of Sri Lanka’s Extended Fund Facility (EFF),
releasing USD 337 million, while cautioning that significant economic vulnerabilities

📰 World Bank projects Sri Lankan economy to expand by 2.2 percent
The World Bank expects Sri Lanka’s economy to grow by 2.2 percent in 2024, up from
earlier estimates, due to recovering remittances and tourism.

📰 Sri Lanka beats key IMF programme targets for March 2024 amid rupee stability
Sri Lanka surpassed key IMF targets for March 2024, exceeding in primary balance, tax
revenue, and reducing Central Bank credits to the Government.

📰 Sri Lanka’s Gross Domestic Product (GDP) grew at 5.3 percent during Quarter One (Q1)
Sri Lanka’s GDP grew by 5.3 percent year-on-year in Q1 2024, reaching LKR 3,329,583
million at constant 2015 prices, up from LKR 3,161,963 million in Q1 in 2023. The growth
was driven by expansions in agricultural (1.1 percent), industrial (11.8 percent), and
services (2.6 percent) sectors.

📰 Central Bank of Sri Lanka reveals a growth surge in manufacturing in May 2024
In May 2024, Sri Lanka’s Manufacturing Purchasing Manager’s Index (PMI) surged to 58.2
from 42 in April 2024, driven by increased new orders and production, particularly in
the food and beverage sector.

📰 Foreign Direct Investment (FDI) from the United Kingdom (UK) to take increase after Presidential Election
UK investments are expected to rise after upcoming elections according to Sri Lanka’s
High Commissioner to the UK, due to growing economic stability.

📰 The Organisation of Professional Associations (OPA) insist on an exportoriented economy for Sri Lanka to benefit from Free Trade Agreements (FTA)
The OPA highlighted that while free trade agreements (FTAs) offer advantages, Sri
Lanka needs a more export-oriented economy to benefit fully.

⚖ Politics & Policy
📰 Presidential Election declaration unlikely in July
The Election Commission is unlikely to declare the Presidential Election by 17 July as
initially possible, citing ongoing voter registration until late July.

📰 Cabinet to further relax foreign exchange regulations
From June 20, 2024, new Cabinet-approved rules under the Foreign Exchange Act will
relax restrictions to support resident companies’ overseas business activities. These
measures aim to facilitate international transactions amidst ongoing economic
adjustments since April 2020, to stabilize foreign reserves.

📰 New institutional framework to enhance Sri Lanka’s industrial sector
President Ranil Wickremesinghe announced the establishment of an Economic
Commission to oversee initiatives to boost industry. “Enterprise Sri Lanka” plans to
support small and medium-sized industries.

📰 Financial Intelligence Unit (FIU) and the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) sign Memorandum of Understanding (MoU) to combat finance crimes
The FIU of Sri Lanka and the CIABOC signed an agreement that legally binds the two
institutions to collaborate on investigations and prosecutions related to money
laundering, bribery, corruption and related offenses.

📰 IMF gives green light to end vehicle import controls by 2025
Sri Lanka, with IMF’s guidance, plans to finalise a phased removal of vehicle import
controls, starting with commercial vehicles and concluding with all vehicles by 15 June,

⁉ What you need to know
📰 Sourced SRI LANKA Fashion and Textile Trade Show to boost UK apparel exports to over USD 1 billion

Sri Lanka aims to boost apparel exports from USD 650 million to USD 1 billion through
the Sourced SRI LANKA Fashion and Textile Trade Show in London, according to the Sri
Lanka Apparel Sourcing Association. Currently, Sri Lanka apparel account for three
percent of the UK’s apparel market.

📰 Jordanian apparel factory employs over 1,100 Sri Lankans
The Sri Lankan Embassy in Jordan recently concluded an outreach programme at the
GIA Apparel factory in Aqaba, Jordan, where over 1,100 Sri Lankans are now employed.

📰 Hela Apparel to raise LKR 1.6 billion
Hela Apparel Holdings PLC plans a Rights Issue to raise Rs. 1.6 billion by issuing 319.365
million shares. The funds will retire part of the Group’s debt. This move is part of Hela’s
strategy to enhance its financial position and pave the way for future growth.

📰 President visits Joint Apparel Association Forum (JAAF) stall at the International Industry Expo 2024
The President of Sri Lanka and Minister of Industries visited the JAAF stall at the
International Industry Expo 2024 held at the BMICH Sirimavo Bandaranaike Exhibition
Centre, organized by the Industrial Development Board.

📰 Sri Lanka’s apparel manufacturing above world standard
The Secretary General of JAAF noted at a recent panel discussion that while global
companies halted operations during the COVID-19 pandemic, Sri Lanka’s Apparel sector
continued cautiously, leading to one of its best years. Foreign apparel company owners
also praised Sri Lanka as their top investment destination.

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

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