💰 The Economy
📰 Sri Lanka finalises debt restructuring agreement with international creditors
Sri Lanka announced the successful conclusion of debt restructuring talks, securing
deals to restructure USD 5.8 billion in bilateral debt and USD 4.2 billion with China’s
Export-Import Bank.

📰 Export earnings increase despite a May downturn in shipments
Sri Lanka’s merchandise export earnings rose by 3.09 percent year-on-year to over USD
5.01 billion in the first five months of 2024, despite a 5.81 percent decline in May. Total
exports, including services, reached USD 6.4 billion.

📰 Inflation cools down to 1.6 percent
The National Consumer Price Index (NCPI) indicated that inflation was down to 1.6
percent in May from 2.7 percent in April, according to the Department of Census and
Statistics. Food inflation fell to 0.5 percent from 3.3 percent, while non-food inflation
slightly rose to 2.4 percent from 2.3% percent.

📰 President Ranil Wickremesinghe outlines strategic vision for digital economy by 2030
President Wickremesinghe outlined a vision to modernize Sri Lanka’s economy by 2030
through digital transformation, technological innovation, and educational reforms.

📰 Industry EXPO 2024 ends with a display of industrial innovation and technology
The first-ever ‘Industry EXPO 2024’ and the ‘Industry Green Awards’ were organized by
the Ministry of Industries and the Industrial Development Board (IDB) in Colombo last
week. It featured over 1,300 booths representing 25 industries in Sri Lanka, including
the apparel industry.

📰 Experts critique the sustainability of the proposed Economic Transformation Bill
A panel of experts scrutinized Sri Lanka’s Economic Transformation Bill, critiquing its
ambitious restructuring proposals, cautioning policymakers of its potential to deter
foreign investment, its lack of democratic legitimacy and potential for economic

⚖ Politics & Policy
📰 Government to set up new institutions to boost trade
President Wickremesinghe outlined significant institutional developments projected to
boost Sri Lanka’s economic competitiveness such as an Economic Commission, an
International Trade Office, and a National Productivity Commission.

📰 The Government launches loan schemes to support struggling Micro, Small and Medium Enterprises (MSMEs)
The Government has introduced four new loan schemes totaling LKR 20 billion to
support MSME industries and businesses.

📰 Indo-Sri Lanka joint development projects on energy and infrastructure gain momentum
Sri Lanka and India discussed joint energy projects and infrastructure development at
a recent meeting, with the potential for Liquefied Natural Gas (LNG) supply, a
petroleum pipeline, oil and gas exploration, and the upcoming Sampur solar power plant
in Trincomalee.

📰 ‘Proceeds of Crime Act’ presented to the Cabinet approval
The Justice Minister announced that the ‘Proceeds of Crime Act’ (POCA), supported by
the International Monetary Fund (IMF), will be presented to the Cabinet for approval.

📰 Sri Lanka and Saudi Arabia to enter into agreement to boost direct investments
Sri Lanka and Saudi Arabia will sign a Memorandum of Understanding (MoU) to attract
direct investment and enhance the investment environment in both countries.

📰 Ceylon Chamber of Commerce renews historic partnership with the Board of Trade of Thailand
The Ceylon Chamber of Commerce and the Board of Trade of Thailand have renewed
their partnership by signing a MoU aimed at enhancing trade, investment, and tourism
between Sri Lanka and Thailand.

⁉ What you need to know
📰 Sri Lanka apparel showcased in London under ‘Your Vital Island’ brand
Sri Lanka’s textile and apparel industry showcased its sourcing potential at an exhibition
in the United Kingdom (UK), organized by Sri Lanka’s Export Development Board (EDB),
Sri Lanka Apparel Sourcing Association (SLASA), Sri Lanka High Commission in the UK,
and the Joint Apparel Association Forum (JAAF). The primary goal was to boost apparel
exports to the UK by a billion dollars by 2026.

📰 Textile recycler launches partners programme
Textile recycling company Circ has launched the ‘Circ-Ready’ partnership scheme,
collaborating with global supply-chain partners like AGI Denim, Foshan Chicley Textile,
Giotex, Marubeni Corporation, MAS Holdings, Pyratex, Selenis, Shinjintex, Soorty
Denimkind, Tainan Spinning, and the Taiwan Textile Research Institute (TTRI) to
promote sustainable textile production.

📰 Browns divests 100 percent stake at Browns Fabric
Browns and Company PLC has sold its entire stake in Browns Fabric Limited to Ceylon
Knit Trend (Private) Limited for LKR 50 million.

📰 Orit Apparels and wins accolades at the National Business Excellence (NBE) Awards 2024
Orit Apparels Lanka was awarded six accolades at the NBE Awards 2024 in recognition
of overall corporate social responsibility, apparel manufacturing, corporate governance
and strategy, capacity building, and performance management.

📰 Star Garments recognized for its energy efficiency in industry
Star Garments Group won a Silver Award for “Energy Efficiency in Industry” at the
International Symposium on Green Industry Initiative for Sustainable Industrial
Development (ISGSD) for its Innovation Center in Katunayake, the world’s first Passive
House factory building and South Asia’s first Passive House Design.

📰 Sri Lanka apparel exports face price pressures amidst domestic challenges
Sri Lanka’s apparel industry faces a downturn, with export performance lagging and
tracking similarly to last year’s USD 4.5 billion, down 20 percent from 2022. JAAF
highlighted uncompetitive pricing as the main challenge, worsened by potential wage

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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