JOINT APPAREL ASSOCIATION FORUM SRI LANKA (JAAFSL)

💰 The Economy
📰 Sri Lanka merchandise exports top USD 6 billion for the first half of the year (1H)
Sri Lanka’s merchandise export performance for the 1H totalled USD 6.098 billion,
a 3.87 percent growth Year-on-Year (YoY) when compared with the corresponding
period in 2023. Accordingly, for the January – July period, the monthly merchandise
exports showed positive variances when compared with the performance in 2023.
Besides January and April, all other months indicated export earnings above USD 1
billion.
Link: https://tinyurl.com/3mc722es

📰 Apparel and tea industries propel Sri Lanka’s June exports to USD 1.03 billion
As per the provisional data released by the Sri Lanka Customs, the merchandise export
performance in June 2024 amounted to USD 1,031.2 million, and recorded an increase
of 2.58 percent compared to the month of June 2023. This was mainly due to the
increase in earnings from the export of apparel and textiles, tea, rubber based
products, coconut based products, food and beverages and spices and concentrates.
Link: https://tinyurl.com/bdzzumdk

📰 Sri Lanka gets more funds under India’s Union Budget allocation for Ministry of External Affairs
Sri Lanka, which has a number of India-funded projects, has received INR 245 crore, an
improvement of INR 95 crore over last year’s funding of INR 150 crore. This increase is
part of the Indian Union Budget 2024-25, which allocates more funds to neighbouring
countries. The additional funding aims to support various developmental projects and
strengthen bilateral relations.
Link: https://tinyurl.com/22es2v48

📰 Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) announces a 25 basis points (bps) rate cut
The Monetary Policy Board of the CBSL, at its meeting held on 23 July, decided to
reduce the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate
(SLFR) by 25 basis points (bps) to 8.25 percent and 9.25 percent,
respectively. According to a CBSL monetary policy statement, the Board arrived at
this decision following a careful assessment of the current and expected
macroeconomic developments and possible risks and uncertainties on the domestic
and global fronts with a view to maintaining inflation at the targeted level of 5 per
cent over the medium term, while enabling the economy to reach its full capacity.
Link: https://tinyurl.com/yc87wf74

⚖ Politics & Policy
📰 Cabinet approves LKR 300 million boost for handloom industry to empower women and youth
The Cabinet of Ministers on 22 July approved the implementation of a comprehensive
development program for the handloom industry, aimed at empowering women and
youth.
The initiative comes with a significant allocation of LKR 300 million from the 2024
Budget.
Link: https://tinyurl.com/y5h2xr9e

📰 Vietnam Trade Promotion Agency and Export Development Board (EDB) of Sri Lanka signs a Memorandum of Understanding (MoU) to boost bilateral trade
The Embassy of Sri Lanka in Vietnam facilitated the signing of a MoU between the
Vietnam Trade Promotion Agency (Vietrade) and the EDB to enhance cooperation
between the trade promotion agencies of both countries. It is envisaged that this would
contribute towards achieving the trade turnover targets of USD 500 million initially, and
then USD 1 billion within the next three to four years, thus benefiting both the
countries.
Link: https://tinyurl.com/f7jpy69z

📰 Sri Lanka prepares anti-corruption agenda backed by International Monetary Fund (IMF) report
The Cabinet has approved a ‘National Anti-Corruption Agenda’ which also
incorporates findings of a technical assistance report by the IMF, a Government
statement said. Under the plan, Sri Lanka’s Anti-bribery law would be revised in line
with the United Nations Convention Against Corruption and a Financial Action Task
Force.
Link: https://tinyurl.com/fjy86h4h

📰 Sri Lanka to introduce digital program for foreign workers facing problem
Sri Lanka will introduce a digital program via smart phones for migrant workers to
report any concerns while employed abroad, the Ministry of Labor and Foreign
Employment said. This decision has been made in response to the rising number of
cases where workers, especially domestic workers, have faced abuse from foreign
employers.
Link: https://tinyurl.com/43nksmj2

📰 President to announce imminent completion of debt restructuring
Addressing a political rally in Gampaha, President Ranil Wickremesinghe stated that
Sri Lanka is set to announce the successful completion of the island nation’s debt
restructuring programme in the forthcoming days. The Government has been
attempting to restructure USD 12.5 billion of sovereign bonds and about USD 1.7
billion of past due interest following the declaration of an external default in 2022.
Link: https://tinyurl.com/2byxhxuy

📰 President claims proposed amendment to the constitution a ‘necessary revision’
President Ranil Wickremesinghe stated that the proposed amendment to the country’s
constitution was a ‘necessary revision’ that would not result in the postponement of
elections. Additionally, President’s Counsel Jayampathi Wickramaratne has elucidated
that leaving out Section 83 (b) of the constitution was not an “oversight” but was a
result of instructions received from the then administration to avoid making changes
that required a referendum.
Link: https://tinyurl.com/54n3djk6

📰 Sri Lanka gazettes bill to change Article 83 of the constitution
Sri Lanka has published a gazette notice to change Article 83 of the constitution which
has a reference to a six year term of the President. The amendment aims to address a
discrepancy in Article 83 of the constitution with reference to a six year term, while
the rest of the constitution, refers to a five year term.
Link: https://tinyurl.com/4cnakbpx

📰 Presidential election date to be declared before 27 July
The National Election Commission is slated to announce the date for the 2024
Presidential Election before 27 July. As per media reports, the date is likely to be
announced on 26 July.
Link: https://tinyurl.com/bdhany4s

📰 Amendments to Inland Revenue Act No. 24 of 2017 to expedite the tax appeal process
The Cabinet of Ministers has approved the proposal presented by the President in his
capacity as the Minister of Finance Economic Stabilization and National Policies to
instruct the Legal Draftsman to prepare a draft to introduce appropriate amendments
to the Inland Revenue Act No 24 of the 2017, to expedite and formalise the tax appeal
process.
Link: https://tinyurl.com/4d7srfeu

⁉ What you need to know
📰 European Commission approves request to use Indonesian fabrics for Sri Lanka apparel under European Union (EU) Generalised System of Preference (GSP) scheme
The European Commission has adopted a favourable decision on 9 July on the joint
application made by Sri Lanka and Indonesia, granting permission for Sri Lanka to use
fabrics and materials of Indonesian origin falling under HS Chapters 51 to 55, 58 and 60
for manufacturing certain textile and apparel products under HS Chapters 61, 62 and
63 destined for the EU region, and for such products to qualify for duty concessions
under the EU GSP Scheme. This flexibility will continue provided that both countries
remain GSP beneficiary countries.
Link: https://tinyurl.com/2r3y6pa9

📰 Brandix Sri Lanka recognised as largest corporate blood donor for 12th consecutive year
Brandix was felicitated as the country’s largest corporate blood donor, for the 12th
consecutive year. One in every 100 blood donors in Sri Lanka is part of the Brandix
family, and the blood donation campaign is a much-anticipated programme at every
Brandix facility. The Brandix Batticaloa team was once again the largest donor with
over 800 pints, followed by Polonaruwa and Avissawella. Over 24,200 Brandix
associates participated in the blood drive.
Link: https://tinyurl.com/5n97kdc5

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