💰 The Economy
📰 IMF Executive Board approves Sri Lanka’s fourth review
The IMF Executive Board has approved the Fourth Review of Sri Lanka’s 48-month Extended
Fund Facility (EFF) arrangement, granting the country access to approximately USD 350 million
in additional financing. This brings total disbursements under the program to around USD 1.74
billion.
Link: https://tinyurl.com/bdxbcb94

📰 Over 1.1 million tourist arrivals recorded in the first half of 2025
The total number of tourist arrivals in the first half of 2025 stands at 1,168,044, the Sri Lanka
Tourism Development Authority (SLTDA) reported. In June alone, 138,241 tourists visited the
country, marking a 21.8 percent increase compared to June 2024.
Link: https://tinyurl.com/3druf9ry

⚖ Politics & Policy
📰 Government anticipates relief on US tariffs ahead of 9 July deadline
Cabinet Spokesman Dr. Nalinda Jayatissa stated that the Government is hopeful of securing
concessions to the reciprocal tariffs announced by US President Donald Trump, ahead of their
scheduled implementation on July 9. He noted that ongoing diplomatic efforts may result in
favorable outcomes for Sri Lanka and local businesses. Meanwhile, President Trump has
announced that the US would charge 20 percent tariffs on imports from Vietnam under a new trade
deal reached during last-minute negotiations.
Link: https://tinyurl.com/2wurusmv
https://tinyurl.com/yvjvffpc

📰 Government to present 2026 Appropriation Bill to Parliament in October
The Cabinet has approved the proposal to present the Appropriation Bill for 2026 to Parliament
in October 2025, with the second reading (budget speech) scheduled for November, followed
by the third reading, and budget debate in November and December.
Link: https://tinyurl.com/2wkacxha

📰 Indian companies explore investment opportunities in Sri Lanka
Indian entrepreneurs state that they are currently directing their attention towards new
investment prospects in Sri Lanka, particularly in sectors like energy, infrastructure, the digital
economy, tourism and agriculture, as well as on enhancing entrepreneurial capacity. A
delegation of around 20 Indian entrepreneurs, comprising heads of several prominent Indian
companies, is currently engaged in an active programme in Sri Lanka, coordinated by the
Confederation of Indian Industry (CII), with the aim of further developing existing investment
opportunities and exploring new prospects. These comments were expressed during the
delegation’s meeting with President Anura Kumara Disanayake on 01 July at the Presidential
Secretariat.
Link: https://tinyurl.com/mzsjvf7x

📰 Sri Lanka and Australia deepen trade collaboration through seminar on export promotion best practices
The Sri Lanka Export Development Board (EDB), in collaboration with the Australian High
Commission, the Australian Trade and Investment Commission (Austrade), and the Department
of Foreign Affairs and Trade (DFAT), hosted a high-level seminar titled “Leveraging Australian
Best Practices in Export Promotion” on 30 June in Colombo. Held under the Australia-Sri Lanka
Trade and Investment Framework Arrangement (TIFA), the seminar convened key stakeholders
from Government, trade, and industry to examine how Australia’s export strategies could
inform and enhance Sri Lanka’s export development efforts.
Link: https://tinyurl.com/28dz922v

📰 Ambassador of Türkiye holds bilateral trade discussions with EDB officials
On 12 June, Türkiye’s Ambassador Semih Lütfü Turgut met with the Export Development Board
(EDB) of Sri Lanka to discuss strengthening bilateral trade and investment ties. The meeting
focused on enhancing economic cooperation, with an emphasis on Sri Lanka’s key exports like
tea, as well as exploring trade fairs and market opportunities in Türkiye. The discussions also
covered investment prospects in key sectors such as textile and apparel, gems and jewelry,
agriculture, fisheries, rubber, ICT, and logistics.
Link: https://tinyurl.com/2vc9azud

⁉ What you need to know
📰 JAAF statement on Sri Lanka’s apparel export performance for May 2025
Sri Lanka’s apparel exports in May 2025 remained relatively flat with a slight dip of 0.63 percent
compared to the same month last year, totaling USD 365.08 million. While shipments to the EU
grew by 5.15 percent and exports to other markets rose sharply by 11.1 percent, this growth
was offset by contractions in key markets. Exports to the USA and UK declined by 7.59 percent
and 6.81 percent respectively, reflecting ongoing demand volatility in Western consumer
markets.
Link: https://tinyurl.com/2w7xdtft

📰 MAS honoured at the CIMA-JXG Pinnacle Awards 2025
MAS Holdings was recently honoured as one of the most distinguished organisations at the 2025
CIMA-JXG Pinnacle Awards, receiving Gold Awards in three key categories: Chief Financial
Officer of the Year (Individual), DEI Champion of the Year (Company), and ESG/Sustainability
Champion of the Year (Company). Hirdaramani International Exports Ltd was awarded Silver in
the ESG/Sustainability category, further highlighting the apparel sector’s commitment to
responsible business practices.
Link: https://tinyurl.com/ywhnnct3

📰 UK unveils 2026 Trade Strategy to boost developing economies
The UK is set to launch its new Trade Strategy this week, with a strong focus on supporting
developing economies. Coming into effect in 2026, the updated scheme will expand cumulation
provisions across Asia and Africa. It will also offer greater flexibility for sectors like apparel,
allowing eligible countries to source raw materials from a broader range of partner nations
under the scheme.
Link: https://tinyurl.com/5c8w8hrm

📰 Sri Lanka Apparel Exporters Association to host awareness session for apparel exporters
The Sri Lanka Apparel Exporters Association will host an awareness session on the Corporate
Sustainability Due Diligence Directive (CSDDD) for apparel exporters on 9 July at Jetwing
Colombo.
Link: https://tinyurl.com/mvv53muj

📰 Industry awaits Court outcome on contested wage amendment bill
The bill to amend the National Minimum Wage and the Budgetary Relief Allowances, which
includes proposed increases to the minimum wage and adjustments to the relief allowances as
approved by the National Labour Advisory Council (NLAC), has been challenged in court by
certain trade unions. The Supreme Court has determined that the proposed legislation is
inconsistent with the Constitution. The industry now awaits the final outcome of this matter.
Link: https://tinyurl.com/3tjnrmm8

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