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133 articles

## 📈 Sri Lanka: Leveraging "Strategic Autonomy" for Regional Stability

Sri Lanka is positioning itself as a neutral hub and the "Singapore of South Asia," balancing ties with global powers to attract FDI and drive economic recovery. This status was recently tested and reaffirmed by the broad international response to Cyclone Ditwah ($4 Bn estimated damage). • Strategic Neutrality & Policy: The government maintains a "Strategic Autonomy" stance, hosting competing interests like the Chinese-run CICT and the US-funded West Container Terminal (Adani/DFC). Foreign policy avoids military alliances, prioritizing "India First" while engaging China, the US, EU, and Japan. • International Aid Highlights (Provisional): Following the late 2025 cyclone, Sri Lanka secured multi-bloc support, demonstrating its role as a neutral ground: India: Largest partner with $450 Mn reconstruction package, $350 Mn in loans, and $100 Mn in grants. USA: $2 Mn initial emergency grant focused on WASH and shelter in Northern and Eastern regions. China: Total of $2.5 Mn+ in direct aid, including a $1 Mn cash grant and RMB 10 Mn in emergency supplies. UAE: Established an "Air Bridge" delivering 116+ tonnes of relief via 8 aircraft. Maldives: Significant sovereign donor, contributing $2.4 Mn through grants and public telethons. • Economic Outlook & MICE: The state is aggressively marketing Colombo as a hub for MICE tourism (Meetings, Incentives, Conferences, and Exhibitions) to bridge the gap between Singapore and Dubai. Leadership roles in IORA and BIMSTEC are being used to promote the Indian Ocean as a "Zone of Peace," aiming to transform humanitarian goodwill into long-term investment.

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DHL Express Sri Lanka Celebrates 45 Years of Innovation & Connectivity 📈

DHL Express is marking 45 years of operations in Sri Lanka, solidifying its role as a key logistics partner. • Established in 1980 as the country's first international logistics provider, becoming a joint venture with John Keells Holdings in 1992. • Key infrastructure includes an office complex (2007) and a gateway facility at BIA with a pioneering dedicated bonded warehouse (2008) offering 24-hour customs clearance. • Driving digital transformation with the Digital Live Advisor (2021) and a dedicated customs clearance landing page (2022), streamlining import-export processes for customers, including SMEs. • Supports various sectors including apparel and e-commerce, empowering businesses and facilitating international trade. • Committed to sustainability with the launch of GoGreen Plus in 2024, offering Sustainable Aviation Fuel (SAF) to reduce emissions, aligning with DHL Group’s Mission 2050: net-zero emissions. • Strategic partnerships with Industry Development Board and Ceylon Chamber of Commerce under the GoTrade program have trained over 350 SMEs in cross-border trade. • Strong social responsibility through GoTeach (employability for youth), GoHelp (disaster response), and the Women’s Network. • Recognized as a Great Place to Work for 11 consecutive years, most recently in 2025. • DHL Express reaffirms its commitment to investing in Sri Lanka's future, sustainable growth, and strengthening its integration into the global economy.

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📈 ADB Boosts Sri Lanka's Water & Food Security with $200M Loan

The Asian Development Bank (ADB) has approved a US$200 million loan for the Mahaweli Development Program in Sri Lanka, aiming to enhance water and food security, particularly in the North Central Province. • Objective: Transfer excess water from the Mahaweli River to drier northern and northwestern regions. • Beneficiaries: Over 35,600 farming households in the North Central Province will directly benefit, strengthening agricultural resilience and food security. • Project Scope: • Completes the North Central Province Canal (NCPC) irrigation infrastructure, irrigating ~14,912 hectares (ha) of paddy fields and enabling reliable water for commercial agriculture development (CAD). • CAD component includes 13 pressurised pipe networks for ~5,039 ha of upland fields, providing "water on demand" for high-value crops. • Impact: • Promotes perennial crops with export potential (mango, papaya, guava, passion fruit) in upland areas. • Supports seasonal diversification in lowland paddy areas (mung bean, chili, maize, groundnut, vegetables) during the Yala season. • Integrates disaster-resilient value chains from seedling to post-harvest handling. • Enhances access to financial and extension services for farmers. • Cofinancing: The ADB leads a joint effort, mobilising an additional US$60 million from the OPEC Fund for International Development and US$42 million from the International Fund for Agricultural Development. The project is crucial for Sri Lanka's food security challenges, especially after recent climate events like Cyclone Ditwah which severely damaged paddy and other crops.

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Sri Lanka Navigates US Tariffs: Risks & Opportunities 📈

Sri Lanka is strategically adapting to a complex international trade environment shaped by new US tariff measures. • Challenges: The nation faces potential secondary tariffs on critical raw materials for key export sectors, alongside increased domestic production costs and heightened global market uncertainty. • Opportunities: These US tariffs are prompting a redirection of trade away from major exporters like China and India, creating significant openings for Sri Lanka. The country can expand its exports in sectors such as apparel, tea, and rubber. New avenues are also emerging for IT, tourism, and professional services through service sector liberalisation. • Strategic Response: To enhance long-term trade resilience and competitiveness, Sri Lanka must focus on: • Diversification: Broadening both export products and markets to reduce dependency and better absorb global economic shocks. • Domestic Preparedness: Strengthening institutional frameworks, regulatory systems, and fiscal governance. • Adaptive Policies: Aligning domestic capabilities with global opportunities and understanding evolving US trade policies. • Supply Chain Enhancement: Improving quality, production processes, and ensuring compliance with international standards. • Digitalisation & Investment: Leveraging digitalisation, value-added manufacturing, and investing in human capital and infrastructure for sustainable development. This proactive approach aims to transform tariff-induced pressures into strategic advantages, promoting alignment with international standards and Sustainable Development Goals.

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🇱🇰 Cyclone Ditwah Relief & Responsible Foreign Aid Management 🤝

• Humanitarian Crisis: Cyclone Ditwah has caused over 450 deaths and a similar number missing, with extensive infrastructure damage and severe displacement, placing immense pressure on national resources. • Swift Regional Support: India was the first to deploy air/naval assets and rescue teams. Pakistan followed closely with naval and medical personnel. Bangladesh has also committed specialized teams and material assistance, highlighting regional solidarity. • Global Aid Pledges: The US pledged US$ 2 Million for immediate relief and recovery efforts. China announced emergency relief packages, and the Maldives extended financial and material supplies. • SL Govt. Strategy: All foreign-remitted disaster-relief funds are being channeled to the Central Bank to strengthen financial accountability and allow for unified resource deployment based on national needs. • Tsunami Lessons Applied: Government prioritizes a disciplined approach, ensuring aid is coordinated through national systems. Key focus areas are: 1. Careful screening of material assistance to avoid unsuitable donations (e.g., winter jackets, expired medicines). 2. Converting goodwill pledges into actionable, funded commitments. 3. Maintaining transparent accounting through modern systems to rebuild public trust. • Outlook: This aims to help Sri Lanka not only rebuild but also build back stronger with more resilient systems.

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China’s Poverty Eradication Success & Global Impact 📈

• China achieved a complete victory over absolute poverty by the end of 2020, resolving the problem once and for all and achieving the largest-scale poverty reduction in human history. • Scale & Speed: Between 2012 and 2020, a total of 98.99 million poor rural residents were lifted out of poverty. This averaged over 12 million people per year (or one person every 3 seconds). • Economic Growth: China’s per capita GDP rose from US$ 6,300 to US$ 13,800 during the key poverty battle period, with an 8.1% average annual growth rate. • Post-Poverty Gains (2024): Per capita disposable income for rural residents in formerly impoverished counties reached US$ 2,450, showing a significant 24.7% increase since 2021. • Global Impact: China contributed over 70% to global poverty reduction since its Reform and Opening-up and met the UN 2030 Agenda target 10 years ahead of schedule. • Infrastructure & Access: Rural areas saw major improvements, including 100% 4G network coverage (90% for 5G), paved roads in all towns/villages, and over 99% basic medical insurance participation for low-income residents. • Sri Lanka Context: As "good partners" and "fellow members of the Global South," China and Sri Lanka share extensive consensus on development and poverty reduction, with China committing to continued cooperation. • Global Fund: China supports international efforts via the Global Development and South-South Cooperation Fund, totaling US$ 4 Billion.

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US-APAC Trade Pacts Offer Slight Boost & Supply Chain Clarity 📈

• Overall Outlook: Fitch Ratings indicates recent US bilateral trade agreements with APAC nations (including China, Japan, Korea, Vietnam, Malaysia, Thailand) reduce exporter uncertainty and are expected to provide a small positive lift to GDP for countries involved over 2026-2027. • China Impact: The greatest economic effect stems from halving the 20% fentanyl-related US tariff on China, which reduces its effective overall US tariff rate by approximately 10 percentage points (pp). The countries also agreed to a one-year pause on recent tightening of trade restrictions. • Regional Growth: Korea and Vietnam should also see an uplift due to stronger demand from the US and China. Greater tariff clarity is anticipated to strengthen exporter confidence and support investment growth, particularly in key exporting markets like Malaysia, Thailand, and Vietnam. • Tariff Differentials: The deals moderate US tariff differences between major Asian exporters, reducing the incentive for tariff-driven supply-chain shifts within the region. However, US tariffs on China remain higher than on most other countries. • Key Challenge: India currently faces a significantly higher 50% US tariff, as it has yet to secure a trade deal with the US. • Fiscal Policy: Several regional governments (Indonesia, Korea, Philippines, Thailand) have adopted looser fiscal policies to offset growth risks from US trade actions, a move which may impede fiscal consolidation efforts and affect public debt trajectories.

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