India Extends Rs. 2.37 Bn Grant for 33 Eastern Province Projects 🤝
• The Government of India has committed a grant of Rs. 2,371.83 million (approx. Rs. 2.37 Bn) under the Indian Multi-Sectoral Grants scheme. • This funding is designated for the implementation of 33 specific development projects within the Eastern Province. • The overall Memorandum of Understanding (MoU) between the Governments of Sri Lanka and India was signed on April 5, 2025. • The Cabinet of Ministers has approved the proposal to proceed with signing 33 separate, individual agreements (MoUs) to commence the implementation of these projects. • These individual project agreements will be finalized between the Indian High Commission and the Ministry of Public Administration, Provincial Councils, and Local Government.
🇱🇰 Commercial Bank Leadership Meets Bangladesh Bank Governor to Boost Regional Financial Ties 📈
• Commercial Bank of Ceylon (ComBank) Chairman Sharhan Muhseen and MD/CEO Sanath Manatunge met with Dr. Ahsan H. Mansur, Governor of Bangladesh Bank (BB), in Dhaka to strengthen regional ties and align strategies with BB’s objectives. • Key discussions focused on Bangladesh’s financial stability, policy direction, regulatory environment, enhancing ComBank’s economic contribution, and expanding into new verticals. • ComBank offered crucial support and consultancy to Bangladesh for its transition to the IFRS reporting regime. • The talks also covered opportunities for greater cooperation between the two countries and Sri Lanka’s accelerated economic recovery. • ComBank's Bangladesh operation (established in 2003, 20 outlets) is highly successful, having been adjudged the Best Foreign Bank in Bangladesh and maintaining a 'AAA' Long Term credit rating from CRISL for 15 consecutive years.
EDB Boosts Women Exporters with Trade Data Insights 📈
• The Sri Lanka Export Development Board (EDB), under its Women Entrepreneurship Development Programme, successfully partnered with Verité Research to conduct a training session on Leveraging Trade Data for Export Success. • The programme was held on 21st October 2025 and saw the participation of 35 women-led exporters from diverse sectors. • The core focus was to enhance participants’ ability to analyze global trade dynamics, understand market trends, and make strategic, data-driven decisions to grow their export businesses. • Experts from Verité Research guided participants through detailed trade data analysis and practical strategies to identify export opportunities and assess competitive landscapes. • This initiative reflects EDB’s continued commitment to empowering women entrepreneurs and strengthening Sri Lanka’s overall global trade success.
🇷🇺🇱🇰 Energy Cooperation Focuses on SL’s Net Zero 2050 Goal 📈
• Sri Lanka Energy Minister Eng. Kumara Jayakody participated in the Russian Energy Week 2025 (Oct 15-17) to strengthen bilateral relations in the energy field. • Minister Jayakody held productive meetings with the Russian Federation Energy Minister, Deputy Minister, and leading industry representatives. He also spoke on Sri Lanka’s energy futurism. • Discussions centered on collaboration to support Sri Lanka’s ambitious Net Zero 2050 target and the country’s transition toward clean, affordable, and reliable energy. • Key areas for cooperation include: • Renewable energy development. • Energy efficiency and advanced power technologies. • Both parties committed to technical collaboration, including education opportunities, joint research, and knowledge exchange in the energy sector.
📈 Harvard's 'BIG BOLD BRAVE 2025' Conference Returns to Colombo
The Harvard Club of Sri Lanka has announced the return of the 'BIG BOLD BRAVE 2025' (BBB 2025) thought leadership conference, set for 12-14 November in Colombo. • The premier APAC conference will unite Harvard alumni organizations and leaders from over 15 Asia-Pacific countries under the theme: ‘Big Opportunities | Bold Moves | Brave People’. • The primary goal is to explore forces shaping the region towards 2050 and to position Sri Lanka as the human capital hub and a rising centre for leadership and dialogue in the region. • Key discussion areas focus on national and regional economic transformation: • Future of work and human capital development. • Digital Economy and entrepreneurship. • Modernising Agriculture and food security. • Sustainable energy, infrastructure, and environmental resilience. • The summit is expected to host over 40 international speakers and more than 150 delegates, aiming to strengthen cross-border partnerships and leverage the global Harvard ecosystem for knowledge, experience, and capital injection for long-term (20-35 year) regional transformation.
Unequal Exchange Drains SL Economy 💸
• A new analysis highlights a systematic value transfer from the Global South to the North through 'unequal exchange' in international trade, driven primarily by wide wage differentials. • The Garments and Apparel sector in Sri Lanka serves as a stark, concrete illustration of this mechanism: • SL Wage Disparity: A Sri Lankan garment worker earns $0.73 per hour ($2.46 PPP-adjusted), less than one-sixth of the comparable US hourly wage (~$15.50). • Estimated Value Loss: The wage disparity in the Garments and Apparel sector is estimated to have transferred US$ 8.2 Bn in value out of the economy. (A universal parity wage system would see sector wage inflows rise from approx. US$ 1.8 Bn to US$ 11 Bn). • Global Context: Studies show Southern wages are 87-95% lower than Northern wages for equivalent work, resulting in the Global North net-appropriating labour valued at a staggering €16.9 trillion. • Path Forward: A regional alliance of peripheral economies is advised to advocate for the gradual equalisation of tradable sector productivity-linked wages between the core and the periphery, with Apparel & Textiles being a key sector for this strategic goal.
🇨🇦🇱🇰 Agri-Tech Mission to Strengthen SL-Canada Ties 📈
• A five-day Canadian Agricultural Mission, organized with The Ceylon Chamber of Commerce, is scheduled for October 27–31, 2025, to deepen bilateral cooperation in agriculture, agri-food, and agri-tech. • The mission will focus on crucial areas: agricultural policy, productivity enhancement, smart agriculture adoption, and climate resilience. • Events, including workshops and conferences, will take place in Colombo, Kandy, and Jaffna, bringing together industry representatives, academics, and policymakers. • Key discussions aim to identify and address Sri Lanka’s production and supply chain gaps by sharing Canada’s best practices in technology adoption, efficiency, and sustainability. • The initiative seeks to help evolve Sri Lanka's agriculture from subsistence farming to a model that boosts productivity, value addition, and export competitiveness, while ensuring national food security and farmer livelihoods. Market access for Canadian agri-food and agri-tech will also be explored.
🚀 Sri Lanka's ICT Drive at GITEX GLOBAL 2025 in Dubai
• Sri Lanka, facilitated by the Consulate General in Dubai and the EDB, actively participated at GITEX GLOBAL 2025 in the UAE, one of the world's largest and most influential tech events. • The delegation highlighted the nation's growing strengths in ICT, software development, AI, and fintech, with a focus on attracting Foreign Direct Investment (FDI) and securing outsourcing opportunities. • Key engagement included B2B meetings and special sessions with entities like Dubai Silicon Oasis and She Trade MENA Hub to build tech transfer and digital trade partnerships. • The delegation included representatives from several local tech firms, including women entrepreneurs. • National Context: Sri Lanka’s ICT sector, recognized as a fastest-growing export industry, is ambitiously targeting to achieve US$ 3.7 Bn in exports by 2027.
SL-Greater Mekong Business Council AGM: FTA & Trade Growth Highlighted 📈
• The 14th Annual General Meeting of the Sri Lanka – Greater Mekong Business Council (SLGMBC) focused on expanding trade, investment, and tourism with ASEAN nations. • Thailand: The signing of the Sri Lanka – Thailand FTA was underscored as a new milestone, providing opportunities for collaboration in food, agriculture, and health sectors. • Myanmar: Bilateral trade more than doubled to US$ 11.4 Mn in 2024–2025. Sri Lanka's current investments in Myanmar total US$ 9 Mn. Potential growth sectors include tea, coconut products, IT, healthcare, and gems & jewellery. • Viet Nam: Key opportunities for partnership were identified in textiles, agriculture, fisheries, food processing, logistics, and tourism. • The Council, covering Thailand, Viet Nam, Cambodia, Laos, and Myanmar, elected Mr. Nimal Ratnayake as President for 2025-2026.
SL-Greater Mekong Business Council AGM: FTA & Trade Growth Highlighted 📈
• The 14th Annual General Meeting of the Sri Lanka – Greater Mekong Business Council (SLGMBC) focused on expanding trade, investment, and tourism with ASEAN nations. • Thailand: The signing of the Sri Lanka – Thailand FTA was underscored as a new milestone, providing opportunities for collaboration in food, agriculture, and health sectors. • Myanmar: Bilateral trade more than doubled to US$ 11.4 Mn in 2024–2025. Sri Lanka's current investments in Myanmar total US$ 9 Mn. Potential growth sectors include tea, coconut products, IT, healthcare, and gems & jewellery. • Viet Nam: Key opportunities for partnership were identified in textiles, agriculture, fisheries, food processing, logistics, and tourism. • The Council, covering Thailand, Viet Nam, Cambodia, Laos, and Myanmar, elected Mr. Nimal Ratnayake as President for 2025-2026.
SL-Greater Mekong Business Council AGM: FTA & Trade Growth Highlighted 📈
• The 14th Annual General Meeting of the Sri Lanka – Greater Mekong Business Council (SLGMBC) focused on expanding trade, investment, and tourism with ASEAN nations. • Thailand: The signing of the Sri Lanka – Thailand FTA was underscored as a new milestone, providing opportunities for collaboration in food, agriculture, and health sectors. • Myanmar: Bilateral trade more than doubled to US$ 11.4 Mn in 2024–2025. Sri Lanka's current investments in Myanmar total US$ 9 Mn. Potential growth sectors include tea, coconut products, IT, healthcare, and gems & jewellery. • Viet Nam: Key opportunities for partnership were identified in textiles, agriculture, fisheries, food processing, logistics, and tourism. • The Council, covering Thailand, Viet Nam, Cambodia, Laos, and Myanmar, elected Mr. Nimal Ratnayake as President for 2025-2026.
📈 BOI Realised FDI Jumps 138% YTD to US$ 827 Million!
• Realised Foreign Direct Investment (FDI), including foreign commercial loans for investments, reached US$ 827 million from Jan-Sep 2025. • This marks a remarkable 138% YoY increase compared to the corresponding period in 2024, reflecting renewed investor confidence and stability. • The BOI is optimistic that total FDI for 2025 will exceed US$ 1 billion. Key Contributors & Sectors: • The largest contributor was the Colombo West International Terminal (CWIT), investing US$ 229 million in port infrastructure to expand the Port of Colombo. • Other major inflows include US$ 111 million from CEAT OHT Lanka for off-the-highway tyre production and US$ 85 million for the City of Dreams integrated resort. • The top five projects accounted for 66% of the total inflows. Investment Pipeline: • Local Investment of US$ 326 million was also realised from 163 BOI projects. • The BOI approved 104 new and expansion projects with an estimated total investment value of US$ 1.06 Billion YTD, spanning sectors like advanced manufacturing, renewable energy, and ICT.
South Asia Trade Alert: SL Projected to Face Export Losses Amid Global Tariff Turmoil 📈
• A joint statement by South Asian economists warns that the world trading system is in turmoil following the new US tariffs announced since April 2025. • Average US tariffs on global imports reached 17.4% in September 2025—the highest level since 1935—fueling a five-fold increase in the World Uncertainty Index over one year. • Impact on Sri Lanka: The CSEP-Trade Sentinel Tariff Impact Tool projects that Sri Lanka and Bangladesh will face export losses due to the new US tariff structure. • India is projected to suffer significantly (combined 50% tariff), while Nepal and Pakistan show modest gains. • South Asia’s policymakers are urged to focus on medium-to long-term interests and take four key actions: • Use the crisis as an opportunity for domestic reform, including reducing high trade protection where South Asian countries are currently outliers. • Exercise economic pragmatism by urgently increasing regional trade, as serious bilateral or regional dialogues are currently absent, despite the widening gap between actual and potential trade. • Pivot to Asia to tap into East Asia’s dynamic supply chains and $9 Trillion import market. • Push to strengthen multilateral forums, particularly the WTO, which provides a voice for small states.
SL Delegation Secures Strong Global Backing at WB/IMF Meetings 📈
• The Sri Lankan delegation, led by CBSL Governor Dr. Nandalal Weerasinghe, held a productive series of high-level meetings during the 2025 World Bank Group/IMF Annual Meetings (Oct 13–18). • Received strong, widespread support for ongoing economic reforms and recognition for prudent macroeconomic management, encompassing fiscal, monetary, and governance improvements. • Progress on debt restructuring was highly commended. Updates provided to sovereign credit rating agencies were well received, helping to reinforce market confidence. • Key discussions focused on advancing development cooperation and securing new financing/technical assistance for critical areas: infrastructure, energy, and digital transformation. • At the Global Sovereign Debt Roundtable (GSDR), SL emphasized near completion of its IMF programme milestones and advocated for greater debt transparency and clearer commercial debt restructuring processes. • Accolade Highlight: Governor Weerasinghe received the prestigious "A Grade" award from Global Finance Magazine for his prudent monetary policy and supervision of the financial system. The overall engagement reinforces the international community’s confidence in Sri Lanka’s firm path to stability and growth.
📈 Sri Lanka Secures US$ 106.9 Mn from ADB for Health Sector Upgrade
• The Government of Sri Lanka and the Asian Development Bank (ADB) signed agreements for the "Strengthening Integrated Health Care and Governance for Universal Health Coverage Program." • Total Mobilization: US$ 106.9 Mn, including a US$ 100 Mn loan (ADB Regular OCR) and a US$ 6.9 Mn grant from the Pandemic Fund. • Objective: Support the national strategic framework to enhance efficiency and quality of secondary health services, ensuring Universal Health Coverage (UHC) via a Result-based Lending modality. • Key Focus Areas: Enhancing first referral care services. Strengthening pandemic prevention, preparedness, and response (PPR). Improving health sector technical capacity and pharmaceutical supply chain management. • The Ministry of Health and Mass Media, alongside the nine Provincial Departments of Health Services, will implement the program.
🌊 Foreign Investors Eye Sri Lanka's Marine & Port Sector Opportunities
• A delegation of 10 foreign investors visited the Colombo Port and Port City this week to assess opportunities in the country's marine and offshore industries. • The investors hailed from India, Saudi Arabia, the United Arab Emirates (UAE), and Oman. • The visit took place alongside the "Voyage Sri Lanka 2025 Marine Summit," organized by the Export Development Board (EDB). • Discussions are centered on strengthening Sri Lanka’s position in marine and aquaculture services. • A key focus is also on expanding the nation’s potential in the boat and shipbuilding industries, according to the EDB. • The summit aims to promote sustainable maritime practices and new technologies.
🇰🇪 Kenya's Aggressive US$ 2 Bn Tea Export Plan by 2027 📈
• Kenyan President William Ruto announced a national plan to more than triple the nation's tea export revenue, targeting over US$ 2 Billion by 2027, up from a recent total of US$ 1.4 Billion. • Strategic Shift: The core strategy is a move away from bulk exports towards processing and value-addition, focusing on premium-priced orthodox and whole-leaf teas. Current orthodox production is 13 million kg annually. • Market Access: China has lifted all import tariffs on Kenyan tea (and coffee), providing duty-free access to a consumer market of 1.4 billion people. Kenya intends to deepen cooperation, including bringing Chinese expertise to facilitate local processing and retain value and jobs. • Growth & Investment: • Recent total tea exports grew from US$ 1.06 Billion to US$ 1.4 Billion. • The average price per kilo of green leaf has increased from $ 0.39 in 2022 to $ 0.49 today. • The government allocated 3.7 Billion Kenyan Shillings (~US$ 28 Million) to modernize outdated tea factories. • Tax waivers on packaging materials for agricultural exports, including tea, will also be implemented to lower production costs.
📈 Deutsche Bank: SL at Turning Point; Stepping Up Global Support
Deutsche Bank India and Emerging Asia CEO Kaushik Shaparia notes that post-crisis reforms have brought a renewed sense of stability, improved macroeconomic indicators, and positioned Sri Lanka at a turning point. • Core Commitment: The bank, celebrating 45 years of operations in SL, commits to stepping up as a conduit for global capital, facilitating FDI flows, and strengthening trade linkages to support economic stabilisation. • High Potential Sectors: Strategic location and reforms offer strong investment potential in logistics, manufacturing, renewables, and tourism. • Re-engagement Focus: Deutsche Bank is concentrating on helping Sri Lanka re-engage with global capital markets and supporting multinational clients investing locally. • Growth Accelerators: For SL to emerge as a regional trade and investment hub, the bank emphasizes the need for continued policy clarity, structural reforms, digitalisation, prudent infrastructure investment, and stronger governance/regulatory frameworks. • Outlook: Deutsche Bank maintains a cautious but optimistic long-term view, remaining committed to growing sustainably with the country.
🇧🇩 Bangladesh Boosts Export Competitiveness vs. SL 📈
• Key Policy Shift: Bangladesh's National Board of Revenue (NBR) has waived Value-Added Tax (VAT) on locally sourced raw materials and services used for exports under a "Deemed-Export" provision. • Competitive Context: This move is aimed at strengthening the competitiveness of Bangladeshi exporters, particularly as Sri Lankan exporters face disruption from the local removal of the Simplified VAT (SVAT) scheme. • Strategic Goals: The exemption is intended to: Prepare exporters for the loss of preferential trade status after graduating from the LDC category in 2026. Eliminate double taxation on export products relying on local inputs. Encourage the growth of backward-linkage industries, reducing import reliance for sectors like apparel & textiles. • Conditions: Exporters must meet specific compliance requirements, including conducting transactions in foreign currency, providing proper documentation (UD/UP), and operating under an approved bonded or special-bonded warehouse.
📈 BOI Pitches Strategic Role to Top US Think Tanks & Investors 🇺🇸🇱🇰
• A 23-member US delegation, including senior reps from the Hudson Institute and American Enterprise Institute, met with the BOI Chairman to explore strengthening economic ties and expanding investment opportunities. • Discussions focused on Sri Lanka’s economic transformation, investment climate, and strategic geopolitical role. • The BOI emphasized the Government's focus on macroeconomic stability, market orientation, and commitment to IMF-backed reforms (fiscal discipline, good governance). • Key Investment Advantages highlighted: • Strategic location along major East-West shipping routes. • Highly educated, English-speaking workforce. • Focus Sectors for US Investment include logistics, renewable energy, technology, pharmaceuticals, minerals, apparel & textiles, tourism, and real estate development. • Upcoming initiatives include new specialised economic zones for technology, textiles, and pharmaceuticals, plus regulatory reforms to foster strategic investments. • Message to US investors: Sri Lanka remains open, transparent, and ready to welcome investment.
📈 CG Corp Global Discusses New Tourism Investments in Sri Lanka
• CG Corp Global Chairman and major Union Bank shareholder, Dr. Binod K. Chaudhary, met with Foreign Affairs and Tourism Minister Vijitha Herath. • The key discussion focused on exploring potential new investments in the tourism sector and other related ventures in Sri Lanka. • Dr. Chaudhary is already a leading investor in Sri Lanka's tourism landscape. • He was accompanied by CG Corp Global MD Nirvana Chaudhary and Union Bank Chairman Dinesh Weerakkody.
📈 Mega Export Corridor: Japan-SL-India to Boost SL GDP by 9.3% by 2030!
• A study projects a significant 9.3% boost to Sri Lanka’s GDP by 2030 via the proposed Japan-Sri Lanka-India Export-Oriented Industrial Corridor. • Envisioned as a complementary collaboration, the corridor aims to create a seamless flow for technology and investment, deeply integrating Sri Lanka into global supply chains, primarily centred on India. • Primary Target Sectors identified based on Indian import demand and SL supply capabilities are: Electrical and Electronic Components, Mineral Resources, and Agricultural Resources. • The initiative is also expected to boost India's GDP by 1.28%. It leverages Japan's technological expertise and investment, enhancing competitiveness for Japanese firms (over 5,000 in India, 100+ in SL). • The roadmap, developed by METI/JETRO/NRI, proposes addressing "hard" issues (logistical inefficiencies, energy constraints) and "soft" issues (regulatory complexity, business awareness gaps) through policy interventions, infrastructure development, and coordinated dialogue. • Future steps include setting up a multilateral working group, bilateral measures, and public-private initiatives to unlock economic benefits for the wider South Asia region.