The Economy
Manufacturing and Services sectors strengthen in December 2024
Sri Lanka’s manufacturing and services sectors improved in December 2024, according to the
Central Bank’s Purchasing Managers’ Index (PMI). The Manufacturing PMI rose to 57.2,
reflecting continued expansion in manufacturing activities, while the Services PMI surged to
71.1, signaling a significant boost in services sector performance.
Link: https://tinyurl.com/y7b4jz5t

Ministry of Energy confirms 20 percent electricity tariff reduction
Minister of Energy Kumara Jayakody has confirmed that electricity tariffs will be reduced by
20 percent with effect from 17 January, as recommended by the Public Utilities Commission
of Sri Lanka. The Minister added that the Government plans on reducing electricity tariffs by
over 30 percent within a span of 3 years.
Link: https://tinyurl.com/2mewemzn

World Bank to allocate USD 200 million for three key projects, and urges the need for more foreign direct investments (FDI)
World Bank Vice President for South Asia, Martin Raiser, concluded a two-day visit to Sri
Lanka, meeting with President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya,
and other stakeholders to discuss economic recovery and sustainable growth. Accordingly, the
World Bank has pledged USD 200 million in funding for three upcoming projects to support
rural development, education, and renewable energy investment. Raiser further highlighted
that Sri Lanka’s growth prospects depend on the mobilization of additional private sector
investment, including the need for more FDIs.
Link: https://tinyurl.com/2saj7dpx

President to inaugurate Sri Lanka Economic Summit on 28 January
President Anura Kumara Dissanayake will inaugurate the Sri Lanka Economic Summit,
organized by the Ceylon Chamber of Commerce, on 28th January at the Shangri-La Hotel,
Colombo. The summit, themed “Shaping Sri Lanka’s Future: Transformational Growth Rooted
in Sound Economic Policies,” will focus on key economic strategies for the nation’s
development.
Link: https://tinyurl.com/mr27xn6w

Politics & Policy
2025 Budget to engage every segment of population in the economic process
President Anura Kumara Dissanayake emphasized that this year’s budget aims to involve all
segments of the population in economic activities. He highlighted the need for an efficient
and productive economic system, prioritizing the strengthening of public transportation and
the effective use of decentralized funds allocated to MPs.
Link: https://tinyurl.com/4aj955yy

Sri Lanka and Italy to sign new flight agreement
Cabinet approval has been granted to sign the bi-partial Civil Aviation Agreement between
the Governments of Sri Lanka and Italy.
Link: https://tinyurl.com/5xj78avp

Sri Lanka and China commit to accelerating Free Trade Agreement (FTA) negotiations
Sri Lanka and China have agreed to work toward an early conclusion of a comprehensive FTA,
a joint statement by both countries said. The two sides agreed to expand cooperation in such
fields as logistics, green development, and digital economy to propel their high-quality and
mutually beneficial practical cooperation.
Link: https://tinyurl.com/479hybud

UK’s Trade Commissioner for South Asia on maiden visit to Sri Lanka
The United Kingdom’s Trade Commissioner for South Asia, Harjinda Kang commenced his
maiden visit to Sri Lanka, scheduled from 21-23 January. The UK Trade Commissioner’s
discussions will focus on strengthening the UK – Sri Lanka trade ties, identifying the ease of
doing business for UK companies, and exploring programmes to support the shared economic
growth of both countries.
Link: https://tinyurl.com/5dcvph9n

Cabinet green lights Proceeds of Crime Bill for Parliamentary approval
The Cabinet of Ministers has approved the publication of a gazette notification for the draft
Proceeds of Crime Act (POCA), and its submission to Parliament. According to Cabinet
Spokesman and Minister Dr. Nalinda Jayatissa, the draft, cleared by the Attorney General,
will now proceed to Parliamentary review.
Link: https://tinyurl.com/u85jkue5

What you need to know

JAAF supports ‘Inclusive Threads’ by empowering apparel workers with disabilities
Sri Lanka’s apparel industry has launched ‘Inclusive Threads’, a significant initiative aimed at
integrating individuals with disabilities into the workforce. This program is spearheaded by
Better Work Sri Lanka in collaboration with the International Labour Organization (ILO), the
International Finance Corporation (IFC), and Australia’s Department of Foreign Affairs and
Trade (DFAT). Yohan Lawrence, Secretary-General of the Joint Apparel Association Forum
(JAAF), highlighted that ‘Inclusive Threads’ serves to dismantle barriers, empower individuals
with disabilities, and cultivate inclusive workplaces that reflect Sri Lanka’s core values and
commitment to innovation.
Link: https://tinyurl.com/yztnypxy

JAAF expresses cautious optimism for apparel exports this year
While Sri Lanka’s apparel exports ended 2024 on a marginal improvement over the previous
year, the outlook for 2025 remains cautiously optimistic as exporters would have to navigate
challenges from low-cost countries with better market access, Yohan Lawrence, Secretary-
General of JAAF stated.
Link: https://tinyurl.com/r8rcd99z

Disclaimer – This Advisory is intended for circulation among JAAF stakeholders only. Please do
not circulate or share on social media. 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