JOINT APPAREL ASSOCIATION FORUM SRI LANKA (JAAFSL)
💰 The Economy
Asian Development Bank (ADB) grants USD 100 million budget support loan for Sri Lanka
Sri Lanka has signed an agreement with ADB to borrow a USD 100 million budget support loan,
linked to power sector policy reforms, the Finance Ministry said. The reforms support
independent and financially sustainable electricity utilities and streamlined and accelerated
development of renewable energy.
Link: https://tinyurl.com/4b79jwsh
📰 *Positive trends mark the beginning of August in Consumer Stock Market *
The Colombo stock market opened August with gains, despite investor sentiment remaining
cautious, as reflected in the low turnover. The Capital Goods sector was the top contributor to
the market turnover (due to John Keells Holdings) whilst the sector index gained 1.12 percent.
The Consumer Durables and Apparel sector was the second highest contributor to the market
turnover (due to Teejay Lanka and Hayleys Fabric), whilst the sector index increased by 1.82
percent.
Link: https://tinyurl.com/hr7vd9c7
📰Sri Lanka surpasses 1.2 million visitors for 2024 to date
Sri Lanka has reached a significant milestone for 2024, with visitor numbers exceeding 1.2
million to date. In the first four days of August alone, the country saw a robust influx of
tourists, recording 26,889 arrivals.
Link: https://tinyurl.com/4dhnxu5s
📰 Central Bank of Sri Lanka (CBSL) has accumulated LKR 546 billion from foreign exchange purchases during first half of 2024
CBSL has absorbed LKR 546 billion of domestic liquidity out of LKR 578.5 billion generated
through foreign exchange purchases in the first six months of 2024, as per official data.
Link: https://tinyurl.com/mwfernjt
📰 Entrepreneurial confidence grows as private company registrations expand in 2024
The number of new private company registrations in the country has shown a significant yearon-year (YoY) increase since the economic crisis in 2022, official data showed. According to the
Registrar of Companies Department, 12,651 new businesses were registered between January
01 and June 30, 2024, marking a 20.2 percent rise from the 10,520 companies incorporated
during the same period in 2023. This upward trend indicates growing confidence among
entrepreneurs as the economy continues to recover, analysts said.
Link: https://tinyurl.com/yyvrjh44
⚖ Politics & Policy
📰Government aims to boost manufacturing sector’s Gross Domestic Product (GDP) contribution to 20 percent by 2030
The Ministry of Industry has set ambitious targets to elevate the manufacturing sector’s
contribution to the national GDP from 16 percent to 20 percent by the year 2030. This strategic
initiative is part of a comprehensive plan outlined in the National Industry Policy and a fiveyear strategic roadmap spanning 2023-2027
Link: https://tinyurl.com/34u3zd59
Sri Lanka plans to ink Preferential Trade Agreement with Indonesia next March
Sri Lanka intends to sign a preferential trade agreement in March 2025, to boost the country’s
export potential. Negotiators from the two countries had met in Colombo on July 15 and 16 and
agreed to finalized talks by December 2024.
Link: https://tinyurl.com/3tj5dk6h
📰 Government endorses enhanced data input guidelines for public sector Information Technology (IT) systems
The Cabinet has approved a proposal to streamline data systems in public institutions to
improve efficiency and service quality. Recognizing the need to integrate IT systems in public
institutions to improve efficiency, reduce data duplication, and enhance service quality, the
proposal has been tabled by the President.
Link: https://tinyurl.com/n5fjaxex
📰Government to reintroduce senior citizen interest subsidy scheme and address pension anomalies
The Cabinet of Ministers has approved a series of measures to address financial issues affecting
senior citizens and retired Government officers. To support senior citizens, the Cabinet has
decided to reintroduce an interest subsidy scheme for fixed deposits, ensuring a 10 percent
annual return. Additionally, the Cabinet of Ministers approved steps to resolve pension
anomalies affecting around 83,000 former Government officials who retired between 01
January 2016, and 01 January 2020.
Link: https://tinyurl.com/48k3mhph
Rooftop solar to remain unchanged despite new rates for renewable energy projects
In a decisive move by the Public Utilities Commission of Sri Lanka (PUCSL), the payments for
rooftop solar power plants will remain unchanged. This decision, detailed in a circular issued
by the Ceylon Electricity Board (CEB) General Manager Dr. Narendra Silva, confirms that the
price of LKR 37 per unit of solar electricity, imposed in 2022, will continue to be valid. The
circular, dated 29 July, amends the effective date of Rooftop Solar PV (RTSPV) schemes to 25
October 2022, while maintaining the rest of the content unchanged.
Link: https://tinyurl.com/5n7fcbc3
Sri Lanka commits to achieving Sustainable Development Goals (SDGs) and net zero carbon emissions by 2040
Addressing the Environmental, Social, and Governance (ESG) Summit 2024 on 06 August,
President Ranil Wickremesinghe outlined Sri Lanka’s commitment to achieving SDGs and
reaching net zero carbon emissions by 2040. The president highlighted several rapid methods
to achieve these objectives, including harnessing renewable energy, modernizing agriculture,
and addressing water shortages. He detailed plans to transform the plantation sector into
agribusinesses, promote sustainable tourism, and enhance product improvement and
digitization.
Link: https://tinyurl.com/4fzv23rr
📰 International Monetary Fund (IMF) team concludes visit to Sri Lanka
An IMF mission team, led by Senior Mission Chief Mr. Peter Breuer, visited Sri Lanka from July
25 to August 2, 2024, to discuss recent macroeconomic developments and evaluate the progress
of economic and financial policies under the authorities’ economic reform program, supported
by the IMF’s Extended Fund Facility (EFF) arrangement. The IMF’s assessment of Sri Lanka’s
progress indicates a continued recovery, with the real GDP experiencing three consecutive
quarters of growth, accelerating to 5.3 percent year-on-year in the first quarter of 2024.
Inflation has remained below the Central Bank of Sri Lanka’s (CBSL) target of 5 percent, and
domestic borrowing rates have declined. Additionally, gross international reserves increased by
USD 1.2 billion during the first half of 2024, reaching USD 5.6 billion. Fiscal revenue collections
also saw an uptick during this period.
Link: https://tinyurl.com/3peay6em
⁉ What you need to know
📰 International Development Research Centre (IDRC) meets with key stakeholders to improve pandemic policy responses targeting female workers in Sri Lanka’s apparel sector
Dr. Kapil Kapoor, the Regional Director for Asia at the IDRC, recently met with the research
team and key stakeholders at the Institute of Policy Studies (IPS). The meeting focused on
enhancing pandemic policy responses to mitigate adverse health effects on female workers in
Sri Lanka’s apparel sector.
Link: https://tinyurl.com/3ynzcu7x
📰 Sri Lankan Olympics opening ceremony attire garners top ranking and global praise
In a testament to Sri Lanka’s cultural and sartorial finesse, Sports Illustrated (SI) has ranked
the country’s Olympics opening ceremony outfits among the top three globally, whilst Elle
Canada has featured it among “All of the Most Stylish Olympic Team Outfits from Paris 2024 so
far”. LOVI Ceylon, a Sri Lankan fashion brand, took pride in dressing the Sri Lankan Olympians
for the prestigious occasion. According to an article by Josh Sanchez of SI, Sri Lankan athletes’
attire secured the third spot, following Mongolia in first place and Mexico in second. Out of the
estimated 10,500 athletes representing 206 National Olympic Committees, SI selected Sri
Lanka’s outfits as one of the standouts looks for the 2024 Paris Olympics, which marked the
first-ever outdoor opening ceremony, set against the iconic backdrop of the Eiffel Tower.
Link: https://tinyurl.com/4rp663h2
📰 Intex Sri Lanka 2024 redefines international sourcing for Sri Lanka’s garment industry
The 15th edition of the premier international textile sourcing platform in South Asia
commenced in Colombo on 7 August, and will run until 9 August at the BMICH, Colombo. Over
the last 10 years, Intex Sri Lanka has been at the forefront of Sri Lanka’s textile and apparel
sector, playing a pivotal role in facilitating trade and innovation, and driving business
opportunities to support the country’s garment exports.
Link: https://tinyurl.com/2apkt3pm
📰 Brandix India Apparel City receives Greentech Global Environment, Health, and Safety (EHS) Award for Best Practices in Environmental Protection 2024
Brandix India Apparel City (BIAC) has been honoured with the Greentech Global Environment,
Health, and Safety (EHS) Award for Best Practices in Environment Protection Category for the
year 2024. This esteemed accolade recognizes BIAC’s unwavering commitment to
environmental sustainability and its innovative practices in protecting and preserving the
environment.
Link: https://tinyurl.com/mwk9mh8y
📰 Free Trade Zone (FTZ) manufacturers express concern over undue delays in Sri Lanka customs
Sri Lanka’s foreign joint venture industries in free trade zones nationwide are severely impacted
by bureaucratic red tape and corruption, causing intentional delays and deficiencies in shipping
and customs clearance operations, according to complaints from FTZ manufacturers. The Free
Trade Zone Manufacturers Association (FTZMA) recently highlighted the concerns of BOI
enterprises over significant delays and inefficiencies in shipping and customs processes.
Link: https://tinyurl.com/bpu34kap
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