JOINT APPAREL ASSOCIATION FORUM SRI LANKA (JAAFSL)

💰 The Economy

📰 Migrant workers send USD 3.14 billion boosting Sri Lanka’s remittances

Migrant workers have collectively sent USD 3.14 billion to the country in the first six months of
the year, which is an 11.4 percent Year-on-Year (YoY) growth in remittances when compared
with the corresponding period in 2023.
Link: https://tinyurl.com/3f5v3t9f

📰 Tourism earnings top USD 1.5 billion in 2024 first half

Tourism achieved a significant milestone with earnings surpassing the USD 1.5 billion mark in
the first six months of the year, reflecting improved performance. The fast reviving sector
recorded earning of USD 1.56 billion for the January – June period, a 77 percent increase Yearon-Year (YoY).
Link: https://tinyurl.com/eduxjysx

📰 National Chamber of Exporters leads Lankan delegation to Korea Import Fair

The National Chamber of Exporters of Sri Lanka (NCE) represented Sri Lanka at the Korea Import
Fair (KIF 2024) from 4 to 6 July at the COEX Exhibition Centre in Seoul. This participation marks
a significant milestone, being the NCE’s inaugural involvement in the esteemed fair, and
underscores efforts to bolster Sri Lanka’s presence in the South Korean market.
Link: https://tinyurl.com/2mwsp3fw

📰 Sri Lanka discusses USD 100 million in financing from OPEC Fund

According to a statement from the Finance Ministry, Sri Lanka is in discussions with the OPEC
Fund for Development regarding a USD 100 million financing package aimed at irrigation and
water security. The 100 million will go to support a project linked to Sri Lanka’s Mahaweli
River which is already supported by the Asian Development Bank, with a USD 300 million
credit, the statement said. The interest of OPEC Fund to provide new financing is a positive
indication of progress made in debt restructuring.
Link: https://tinyurl.com/3tx9mcu2

📰 Government expands tax coverage to 14 additional sectors

In a bid to increase the tax revenue, the Government has registered 14 fields, which were
previously overlooked, for mandatory tax payments. The ongoing investigations by the Inland
Revenue Department (IRD) have helped the Government increase its revenue from 8.3 percent
to over 11 percent, as a percentage of Gross Domestic Product (GDP), while helping to maintain
a positive figure in the primary account. Private schools, private tutoring classes, large-scale
private medical services, engineering services, legal services, and survey services are among
the newly registered fields subjected to mandatory tax payments.
Link: https://tinyurl.com/2wha4b5n

⚖ Politics & Policy

📰 Presidential election to be declared at the end of July

The Election Commission will declare the Presidential Elections only at the end of July, enabling
polling to be taken on a day between 17 September and 17 October. The current presidential
term is set to expire by 18 November. The election should be completed before October 18 for
the election of a new President within the stipulated time.
Link: https://tinyurl.com/bkhr8arm

📰 Sri Lanka moves to amend Constitution on presidential and parliamentary terms

The Cabinet of Ministers has greenlit a resolution aimed at amending specific articles of the
Constitution concerning the terms of office for the President and Parliament. Recent
observations have pointed out discrepancies between the tenure of the President and the
duration of parliamentary terms as stipulated in the mentioned articles. Currently, Article 83
(b) allows for a presidential term exceeding six years, whereas the proposed amendment seeks
to substitute this with a term not exceeding five years.
Link: https://tinyurl.com/2vkzvbvm

📰 Sri Lanka Telecommunications (Amendment) Bill passed

Sri Lanka Telecommunications (Amendment) Bill was passed with amendments on 9 July without
a vote in Parliament. This amendment facilitates necessary regulation to create a more
competitive and fair market in the telecommunications sector in accordance with the accepted
standards of the world.
Link: https://tinyurl.com/yp5b42w3

📰 Sri Lanka in talks with United Nations (UN) body and International Seabed Authority (ISBA) over Cobalt-rich crust in Bay of Bengal

Sri Lanka is negotiating with the United Nations Commission on the Limits of the Continental
Shelf (UNCLCS) and ISBA regarding cobalt-rich crusts in the Bay of Bengal, despite India opposing
the island nation’s request. The Foreign Ministry stated that Sri Lanka submitted its request
under the special method outlined in the Statement of Understanding for states in the southern
part of the Bay of Bengal. The demand for cobalt, which is crucial for rechargeable batteries
in hybrid and electric vehicles (EVs), is expected to rise significantly in the next decade due to
the global shift toward renewable energy and EVs.
Link: https://tinyurl.com/mse7h78d

📰 Public Utilities Commission of Sri Lanka (PUCSL) calls for public consultation on second electricity tariff revision

The PUCSL on 9 July called for an oral public consultation over the second Electricity Tariff
Revision. After the public consultation, the Commission will announce the final decision on 15
July. The Ceylon Electricity Board (CEB) has handed over proposals pertaining to the revision
of electricity tariffs to the PUCSL. Accordingly, there will be a 25.5 percent decrease in rates
for the domestic category and a 3 percent reduction for religious and charitable institutions.
The proposals do not include any tariff reductions for hotel and industrial sectors.
Link: https://tinyurl.com/2w267edc

⁉ What you need to know

📰 IFC and Star Garments Partner to Expand Textile and Apparel Manufacturing in Togo

To boost textile and apparel manufacturing in Togo, IFC announced a financing package for Star
Garments Group Limited to help the company build Togo’s first large-scale, export-focused
apparel manufacturing center, creating thousands of local jobs. IFC’s USD 15 million loan will
provide Star Garments with funding to build a greenfield clothing factory in Togo that is
expected to create 4,520 direct and indirect jobs, especially for women, and generate
significant export-oriented value addition by 2030. This investment marks Charles Komar & Sons
and Star Garments’ first venture into Africa.
Link: https://tinyurl.com/3xpnzrdc

📰 The 15th International Textile Exhibition (Intex) in Sri Lanka serves as a pivotal platform for the country’s garment industry

Intex Sri Lanka, a must-attend event dedicated to sourcing and trading enables the Sri Lankan
RMG industry to source a vast array of natural and manmade textiles, trims, accessories, dyes,
chemicals and software solutions by connecting with 200+ suppliers from over 15 countries with
country pavilions from India, Taiwan, Pakistan, China as well as textile showcases by Korea and
Japan.
Link: https://tinyurl.com/y8nacwea

📰 MAS signs on as official clothing partner for Paris Olympic Games 2024 and launches MAS Athlete Training Academy

At an event held in Colombo, MAS Holdings was announced as the official clothing partner of
Team Sri Lanka for the Paris Olympic Games 2024. The event coincided with the inauguration
of the MAS Athlete Training Academy, an initiative by MAS to identify, develop and support
young athletes to successfully represent Sri Lanka at future Olympic Games.
Link: https://tinyurl.com/32vjxw6c

📰 Star Garments Group wins Silver Award for ‘Energy Efficiency in Industry’

Star Garments Group was recently recognised at the first-ever International Symposium on
Green Industry Initiative for Sustainable Industrial Development (ISGSD), winning a Silver Award
in the ‘‘Energy Efficiency in Industry” category for its Innovation Center based in Katunayake,
the first ‘Passive house factory building’ in the world and first ‘Passive House Design’ in South
Asia. It is also the first LEED Platinum building in Sri Lanka to be certified under latest LEED V4
Link: https://tinyurl.com/45j7dmk5

📰 Hirdaramani Recognised for its sustainability efforts at Presidential Environment Awards 2024
Hirdaramani Apparel clinched the Gold Award in the Apparel Industry category at the
prestigious Presidential Environment Awards 2024, securing its position as a leader in
Sustainability in Sri Lanka. The company’s Mihila facility secured this top award while
Hirdaramani Ja-ela/Sithro (Washing) and Hirdaramani Seethawaka (Washing) secured Silver and
Bronze Awards respectively in the Textile Processing sector category. Hirdaramani Kuruwita
walked away with a Merit Award in the Apparel Industry category, bringing the company’s total
award count to four.
Link: https://tinyurl.com/bdm87wvc

📰 Crocodile ranked among LMD’s top 10 most loved retail lifestyle brands
Crocodile, a leading lifestyle brand renowned for its international acclaim, has been honoured
as one of the top 10 most loved brands in the Retail Lifestyle category by LMD readers. This
prestigious recognition comes from LMD’s Brands Annual Ranking 2024, based on a survey
conducted among their readership.
Link: https://tinyurl.com/4594d74x

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