The Economy
*Sri Lanka has finalised a restructuring agreement for a USD 12.5 billion bond closure*
Sri Lanka has successfully concluded its discussions with the bondholders, reaching an agreement on the restructuring terms on 03 July. A notice issued by the Government confirmed the island nation has reached a consensus with the advisors to restructure USD 12.5 billion outstanding bonds.
Link: https://tinyurl.com/kczvduey
*Asian Development Bank (ADB) aims to support local startups*
Sri Lanka’s local startups are likely to receive a fresh boost, as the ADB recently announced that the segment is among those identified for support. The initiative led by the ADB aims to facilitate the growth of Micro, Small, and Medium Enterprises (MSMEs).
Link: https://tinyurl.com/3hc66pf2
*Sri Lanka aims to bolster trade security with the launch of the Strategic Trade Forum*
The U.S. Embassy in Colombo, in partnership with the Sri Lanka Department of Import and Export Control, recently launched the first Sri Lanka Strategic Trade Forum. The event convened Government and private sector leaders to discuss trade security and enhance competitive practices for global trade hubs.
Link: https://tinyurl.com/yjecztnw
*Tariff rates for roof top solar revised*
The Cabinet of Ministers has approved the new tariff rates for rooftop solar and other renewable energy projects. The revision, effective from July 1, 2024, is based on a formula adopted in 2022, which considers the USD rate, interest rates, and other economic factors. The formula ensures the tariff rates are reflective of current economic conditions.
Link: https://tinyurl.com/4rfjh42x
*ADB urges SL to embrace green bonds for growth* Sri Lanka must intensify efforts to sustain its growth while addressing the climate change challenges, the ADB stressed, while highlighting the need for the island nation to turn to green bonds to meet its needs. Promoting sustainable capital market development is an integral component of the ADB’s work in Sri Lanka to promote sustainable recovery, build resilience and foster inclusive growth.
Link: https://tinyurl.com/2p9sbzj4
*Sri Lanka records over 110,000 tourist arrivals in June* Sri Lanka recorded 113,470 visitors in June, totaling 1.01 million tourists for the year, indicating steady growth. Daily tourist arrivals averaged 3,782 in June, marking a slight increase compared to the daily average of 3,617 recorded in May 2024. As Sri Lanka continues to navigate the challenges and opportunities in the tourism sector, the consistent growth in visitor numbers signals a positive outlook for the industry.
Link: https://tinyurl.com/2twjram6
*Sri Lanka crosses the 1 million tourist arrival mark*
Sri Lanka tourism reached a key milestone on June 29 by welcoming its one millionth tourist for 2024. Along with this milestone, Sri Lanka tourism is gaining momentum in promoting the island’s uniqueness as a ‘treasure trove’ among travel destinations worldwide.
Link: https://tinyurl.com/3ccpvk3n
⚖ Politics & Policy
*Cabinet endorses project agreement for the second phase of the Global Textiles and Apparel Programme (GTEX2)*
The Cabinet approval has been granted to sign the proposed project agreement between the Swiss State Secretariat for Economic Affairs and the Sri Lanka Export Development Board (EDB) to implement the second phase of GTEX2. This initiative aims to boost Sri Lanka’s textile and apparel industry by promoting quality green products through digitization, thereby fostering growth in the sector.
Link: https://tinyurl.com/268v6jvz
*Working committee to develop framework to establish National Quality Council*
The Cabinet approved the formation of a working committee tasked with developing the National Quality Council, aligning with recommendations outlined in the National Quality Policy presented in 2016, the National Quality Infrastructure Strategy 2018-2022, and the National Export Strategy 2018-2022. The proposed National Quality Council aims to integrate and enhance product quality standards across industries, ensure compliance with international standards, and boost Sri Lanka’s export capabilities.
Link: https://tinyurl.com/3t9arz5s
*Government proposes ‘Overseas Employee Salutation’ programme*
Cabinet approval has been granted for the “Overseas Employee Salutation” programme, recognising the significant contributions of Sri Lankan migrant workers during the economic crisis. The programme aims to mobilise overseas employees to contribute at least USD 500 million monthly through legitimate means to decrease the trade gap encountered by Sri Lanka’s economy in 2022.
Link: https://tinyurl.com/y9hpap7v
*Supreme Court rules certain clauses of Financial Management Bill unconstitutional* The Supreme Court has determined that certain clauses of the Public Financial Management Bill are inconsistent with the Constitution and can be passed only by a special majority and through a referendum. The proposed Public Financial Management Bill aims to enhance fiscal discipline by setting a 13 percent primary spending limit of Gross Domestic Product (GDP).
Link: https://tinyurl.com/y8ypsmh3
*Public Utilities Commission of Sri Lanka (PUCSL) informs electricity tariff reduction*
The PUCSL informed that the electricity tariffs will be reduced from July 16, while the final decision on electricity tariffs is scheduled to be taken on July 15. Stakeholder consultations to seek public opinion on the revision of the second electricity tariff for the year 2024 proposed by the Ceylon Electricity Board (CEB), will be accepted till July 08th.
Link: https://tinyurl.com/3rdhau9r
*Cabinet approves special loan scheme for women to engage in economic activities *
The Cabinet has endorsed a proposal to allocate LKR 2 billion to implement a special loan scheme to eliminate challenges encountered by women engaged in economic activities.
Link: https://tinyurl.com/2aaj3y62
⁉ What you need to know
*MAS Athlete Training Academy to launch in July*
MAS Holdings has received Cabinet approval to establish Sri Lanka’s first and largest Public Private Partnership (PPP) dedicated to sponsoring future Olympians through the MAS Athlete Training Academy, scheduled to be officially launched in July. The academy will identify, develop, and support promising young athletes to successfully represent Sri Lanka at the 2028 Los Angeles Olympics and the Brisbane Olympics in 2032. In partnership with the Ministry of Education, Ministry of Sports, National Olympic Committee, Sri Lanka Athletics Association, and the Sri Lanka Olympian Association, the MAS Athlete Training Academy will follow a comprehensive process to identify and nurture talented athletes from schools.
Link: https://tinyurl.com/yke6h8pc
*National Convention on Quality and Productivity (NCQP) 2024 concludes on a high note*
The NCQP 2024, organized by the Sri Lanka Association for the Advancement of Quality and Productivity (SLAAQP), concluded successfully on June 25 at the Mount Lavinia Hotel, with over 360 teams representing the manufacturing sector. Ceylon Biscuit Limited (CBL), MAS Holdings, Ansell Lanka, Uni Dil Packaging, Hemas Hospitals, Melsta Hospitals, Lanka Hospitals, and Elastomeric Engineering were among the Gold award recipients who will represent Sri Lanka at the International Convention on Quality Control Circles (ICQCC) 2024, scheduled for November.
Link: https://tinyurl.com/yey8as59
*CEO and Founder of Gymshark, Ben Francis, lauds Sri Lanka’s vibrant apparel industry*
During a recent visit to Sri Lanka’s apparel industry, Gymshark CEO and Founder Ben Francis praised the sector’s innovative and sustainable practices. He also acknowledged its significant positive impact on local communities and the support it provides them.
Link: https://tinyurl.com/mr3rp2ra
*South Asia Textiles enhances production performance post implementation of Coats Digital’s FastReactPlan*
Coats Digital recently announced that South Asia Textiles Ltd., a subsidiary of Hayleys Fabric PLC has seen significant improvements on the production floor following the implementation of Coats Digital’s FastReactPlan. Following the implementation of FastReactPlan, South Asia Textiles quickly benefited from access to business-critical planning and production information from the same, single, digitised source. Link: https://tinyurl.com/35pv8ab6
*BatJili announces sponsorship deal with Galle Marvels for Lanka Premier League 2024* BatJili, the sports apparel platform has announced its sponsorship deal with Galle Marvels for the upcoming Lanka Premier League (LPL) 2024 season, commencing on July 1, 2024. As the principal sponsor, BatJili aims to promote cricket through an engaging sports environment.
Link: https://tinyurl.com/4drptnnw 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