Sri Lanka’s apparel industry is facing renewed pressure amid falling US retail sales and looming tariff hikes that could derail exports to one of its key markets. The latest data from the US National Retail Federation (NRF) reveals a sharp slowdown in consumer spending on clothing in June 2025, signaling potential trouble for exporters like Sri Lanka.

According to the CNBC/NRF Retail Monitor, US sales at clothing and accessory stores dropped 0.22% month-on-month in June after seasonal adjustments—marking the first monthly decline since February. While unadjusted year-on-year sales grew by 2.71%, this was still a slowdown compared to the 3.21% rise in May, underscoring weakening consumer demand.

The US retail sector, already grappling with economic uncertainty, is bracing for further headwinds from trade tensions. NRF President Matthew Shay pointed out that although consumers still have the ability to spend, the overall economic momentum is slowing. “Spending was down across almost all sectors,” he noted, warning that unresolved trade policies were acting as a major drag despite legislative measures like the “Big Beautiful Bill” aimed at stimulating growth.

For Sri Lanka’s apparel industry—which relies heavily on the US market for its export income—this downturn comes at a critical juncture. The situation is further exacerbated by US President Donald Trump’s renewed tariff threats. Trump has announced new duties of up to 30% on imports from Mexico and the EU beginning August 1, 2025. In addition, over 20 other countries, including key US trading partners like Japan, South Korea, and South Africa, have received notices about potential tariff increases of up to 40%, unless new bilateral agreements are reached.

While Sri Lanka is not yet directly named in the tariff list, trade analysts warn that unless swift diplomatic and trade policy action is taken, the country’s apparel exports could soon be subject to similar treatment. If such tariffs are imposed, the already struggling apparel sector could see export earnings drop significantly, with estimates pointing to a potential 30% or more decline.

Industry stakeholders are urging the Sri Lankan government to immediately engage with US trade officials and explore policy measures to secure tariff exemptions or new trade agreements. With apparel making up over 40% of Sri Lanka’s total export revenue, any prolonged disruption in the US market could have far-reaching economic implications.

As the global retail environment becomes increasingly volatile, Sri Lanka’s export strategy needs urgent recalibration to safeguard one of its most vital sectors from escalating geopolitical risks.

The Sri Lanka Bureau of Foreign Employment (SLBFE) reports that 144,379 Sri Lankan migrant workers left the country for overseas employment between January and June 2025, with male workers outnumbering female workerssignificantly during this period.

According to SLBFE data, 88,684 men and 55,695 women secured foreign employment opportunities in the first half of the year.

The Middle East remains the primary destination for Sri Lankan workers. Kuwait topped the list with 38,806 departures, followed by the United Arab Emirates (UAE) with 28,973, and Qatar with 21,958.

However, there is a noticeable shift in migration trends, with an increasing number of Sri Lankans choosing East Asian countries. Notably, 6,073 individuals departed for Japan, and 3,134 for South Korea within the same period.

In terms of foreign income, Sri Lankan migrant workers remitted a total of US$ 3.73 billion during the first six months of 2025 — a significant 18.9% increase compared to the US$ 3.14 billion recorded during the same period in 2024. For June 2025 alone, remittances totaled US$ 635.7 million.

The SLBFE has expressed optimism that total foreign remittances could reach US$ 7 billion by the end of the year, a target that would provide a much-needed boost to Sri Lanka’s economy.

A significant step toward advancing Sri Lanka’s scientific infrastructure was taken as the Sri Lanka Institute of Biotechnology (SLIBTEC) signed a $15 million Memorandum of Understanding (MoU) with STEMedical, a U.S.-based biotechnology firm, to establish an internationally accredited laboratory in the country.

The MoU was signed at the Presidential Secretariat under the National Initiative for Research and Development Commercialisation (NIRDC). Signing on behalf of STEMedical was its founder, Professor Hans Keirstead, while SLIBTEC Chairman Prof. Samitha Hettige and Chief Operating Officer Amali Ranasinghe signed on behalf of Sri Lanka.

According to the President’s Media Division (PMD), the lab will be developed to meet international accreditation standards and will serve critical sectors such as healthcare, agriculture, cosmetics, Ayurveda, and import/export quality assurance.

Senior Presidential Advisor on Science and Technology, Professor Gomika Udugamasooriya, highlighted the lab’s strategic value, saying it will contribute directly to doubling Sri Lanka’s export revenue by 2030. He described the occasion as a “special day for Sri Lanka” and stressed the importance of laboratory accreditation in boosting national and international trust in local products and services.

The facility is expected to operate as a central hub, supporting a network of laboratories across the country, and will play a key role in ensuring the quality and safety of goods and services.

Professor Hans Keirstead, a globally renowned stem cell scientist and CEO of the Human Immunome Project, expressed enthusiasm about Sri Lanka’s leadership and scientific vision. He noted that the project will have both clinical and economic benefits, potentially generating revenue by accrediting imported products like pharmaceuticals.

Other dignitaries present included Russel Aponsu, Senior Additional Secretary to the President; Dr. Muditha Senarath Yapa, Director-General of NIRDC; and Dr. Nistor Gabriel Loan, CEO of STEMedical.

This collaboration marks a milestone in Sri Lanka’s efforts to integrate world-class scientific research and infrastructure with its national development agenda.

A 32-year-old Sri Lankan passenger has been arrested at Bandaranaike International Airport (BIA) for attempting to smuggle a massive quantity of gold into the country, Ada Derana reports.

The suspect, who had arrived from Dubai, is a resident of the Grandpass area in Colombo. Airport customs officials apprehended him in possession of 195 gold biscuits and 13 kilograms of gold jewellery, with the total haul weighing approximately 35 kilograms.

The estimated street value of the seized gold is Rs. 1.1 billion, making it one of the largest gold smuggling busts reported at the airport in recent times.

Authorities have launched further investigations to determine whether the suspect is connected to a broader smuggling network.

Showers will occur at times in the Sabaragamuwa province and in Kandy, Nuwara-Eliya, Galle and Matara districts. Several spells of showers may occur in the Western and North-western provinces.

Showers or thundershowers may occur at a few places in the Uva, Northern and Eastern provinces during the afternoon or night.

Strong winds of about (40-50) kmph can be expected at times over Western slopes of the central hills and in Western, Sabaragamuwa, Southern, North-western and North-central provinces.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers

By: Staff Writer

July 15, Colombo (LNW): A major corruption scandal has come to light at the Colombo National Hospital, where chemical reagents worth billions of rupees were allegedly procured in violation of proper procedures, posing a serious risk to patient health and safety.

The revelations were made by Dr. Chamal Sanjeewa, Chairman of the Trade Union Alliance of Medical Professionals on Civil and Medical Rights, citing a government audit report released in June this year.

According to Dr. Sanjeewa, the scale of the malpractice is staggering—allegedly fifteen times worse than the much-publicized corrupt deal involving former Health Minister Keheliya Rambukwella.

While Rambukwella is accused of authorizing the procurement of substandard immunoglobulin injections worth Rs. 130 million, the irregular purchases at the National Hospital’s laboratory over the past three years exceed Rs. 2.5 billion in value.

The audit report states that these reagents were bought regionally without approval from the hospital’s Medical Supplies Division. Alarmingly, reagents worth over Rs. 13 million have already expired, while chemicals worth another Rs. 5 million were purchased after their expiry date.

Furthermore, reagents valued at Rs. 8 million were accepted into the lab despite having less than a month of usable shelf life left.

Dr. Sanjeewa also raised concerns about outdated laboratory equipment still in use, stating that many devices had been phased out internationally. He questioned who approved these procurements, who made the recommendations, and who accepted the goods—urging the Criminal Investigation Department (CID) to conduct a thorough investigation.

He warned that tens of thousands of patients may have received test results based on expired or degraded chemicals, severely affecting the accuracy of medical diagnoses. This, he said, could lead to fatal consequences—for instance, a heart patient being misdiagnosed as healthy, or a kidney patient being sent home without proper treatment.

“The scale of harm caused to patients by this negligence could far exceed the fallout from Keheliya’s actions,” Dr. Sanjeewa asserted.