💰 The Economy
📰 Sri Lanka exports increase by 4.62 percent to USD 1.4 billion in February
Sri Lanka’s export sector demonstrated robust growth in February 2025, with total exports,
including both merchandise and services, reaching USD 1,382.53 million, marking a 4.62 percent
YoY increase compared to February 2024.
Link: https://tinyurl.com/3kayk3an

📰 Remittances from Sri Lankan workers surge by 16.3 percent
Sri Lankan worker remittances through the banking system rose by 16.3 percent by the end of
February, according to the Sri Lanka Bureau of Foreign Employment (SLBFE). The Central Bank
of Sri Lanka (CBSL) reported USD 548.1 million in remittances for February, bringing the total
for the first two months of 2025 to USD 1.12 billion.
Link: https://tinyurl.com/83wcwz27

📰 CBSL signals stability with unchanged key policy rate
The CBSL maintained its key policy rate at 8 percent during its latest monetary policy review
on 26 March, reaffirming that the current stance aligns with its 5 percent inflation target while
supporting economic recovery. This follows its transition to a single-rate policy structure in
November.
Link: https://tinyurl.com/4n84tysu

⚖ Politics & Policy
📰 EU delegation expected in mid-April to review GSP+
A delegation from the European Union (EU) is scheduled to arrive in the country in mid-April to
review its Generalised Scheme of Preferences Plus (GSP +) for Sri Lanka, Foreign Minister Vijitha
Herath stated.
Link: https://tinyurl.com/3vzccxjz

📰 Japan grants 300 million yen for firefighting engines in Sri Lanka’s Export Processing Zones
Japan has provided a grant of 300 million Japanese Yen (LKR 590 million) to enhance firefighting
units in Export Processing Zones (EPZ) under the Board of Investment (BOI) through equipment
upgrades and capacity building, the Finance Ministry announced.
Link: https://tinyurl.com/fdewxe7c

📰 Cabinet nod to provide essential food package during festive season
In line with the proposal submitted under the Budget 2025, the Government has announced
plans to provide an essential food package at a concessionary price during the upcoming Sinhala
and Tamil New Year festival season.
Link: https://tinyurl.com/yxy9hs9z

📰 Government pledges stronger support for exporters at 25th Exporters’ Forum
Industry and Entrepreneurship Development Minister Sunil Handunneththi affirmed the
Government’s commitment to facilitating trade and addressing exporter challenges at the 25th
Exporters’ Forum organised by the Sri Lanka Export Development Board (EDB) on 24 March.
Link: https://tinyurl.com/3vezwan5

📰 Sri Lanka and Australia engage in bilateral talks to strengthen political, economic, and maritime ties
The 5th Round of Senior Officials Talks and the third Strategic Maritime Dialogue between Sri
Lanka and Australia was held from March 25 to March 26, 2025, at the Department of Foreign
Affairs and Trade in Canberra, according to the Ministry of Foreign Affairs. The discussion
reviewed bilateral, regional, and multilateral relations, with a focus on strengthening
cooperation in key areas such as political engagement, economic partnership, maritime
cooperation, development, defence, education, tourism, and people-to-people engagement,
the foreign affairs ministry said in a statement.
Link: https://tinyurl.com/5h9jexn9

📰 Government to reduce tariffs paid for rooftop solar power
The government has decided to revise the tariff paid per unit of electricity generated by rooftop
solar panels, with the proposed rates set to vary based on the scale of energy production.
According to the Ministry of Energy, a cabinet paper outlining these amendments has been
submitted to the Cabinet of Ministers, following recommendations from the Ceylon Electricity
Board (CEB). The revision aims to adjust the existing payment structure for solar power
generation, aligning it with current energy policies and market conditions.
Link: https://tinyurl.com/587kau4y

!? What you need to know
📰 Apparel exports increase in February despite declines in key markets
Sri Lanka’s apparel industry recorded a 2.3 percent export growth in February, reaching USD
407.93 million compared to the same period in 2024.
Link: https://tinyurl.com/c9h2jktx

📰 Apparel exporters warn of rising costs following SVAT removal
The Inland Revenue Department (IRD) confirms that the new risk-based refund system, set to
replace the existing SVAT system, remains on track for implementation in October despite
concerns from exporters. Therefore, Sri Lanka’s apparel exporters will face rising financing
costs as the Government phases out the Simplified VAT (SVAT) scheme. The change will tie up
cash flow in VAT payments for local inputs, increasing operational expenses.
Link: https://tinyurl.com/bv8cvd74

📰 Asian textile leaders call for collaboration to revive growth
Titled “Asia Steering Global Growth,” the ATEXCON conference, organized by the Confederation
of Indian Textile Industry (CITI), highlighted the need for collaboration among leading Asian
textile exporters. CITI Chairman Rakesh Mehra emphasized that while countries like India,
China, Bangladesh, Vietnam, Sri Lanka, and Indonesia have distinct strengths, Asia’s textile
growth has stagnated in recent years. He urged collective efforts to harness the region’s full
potential.
Link: https://tinyurl.com/249bpf2b

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