Star Garments Group yesterday announced its plan to build a large-scale apparel export manufacturing factory in Togo to boost the West African country’s textile and apparel capabilities, through a financing package that includes a $ 15 million loan by the International Finance Corporation (IFC), a member of the World Bank Group.

The move marks Star’s first manufacturing facility outside of Sri Lanka. This project aims to create thousands of jobs in Togo, putting Star on the global map as a multiple country-of-origin supplier. Star’s facility will also be the first large-scale apparel manufacturing facility in Togo.

Star will build a greenfield clothing factory in Togo in Plateforme Industrielle d’Adétikopé, an industrial park on the outskirts of Lomé, and provide around 4,520 direct and indirect jobs, especially for women, and contribute significantly to export-oriented value addition by 2030. Star’s cut-make-trim factory will be a part of Lomé’s high-value-added industrial chains in several agro-industrial sectors.

The $ 15 million by IFC will comprise $ 7.5 million from its own account and another $ 7.5 million loan supported by the International Development Association Private Sector Window Blended Finance Facility. 

Star is a powerhouse in Sri Lanka’s apparel industry with over four decades of experience, backed by a team of over 9,000. Star is also widely regarded as a champion in sustainability, with eight of its factories LEED-certified including the first passive house factory building in the world. Star’s factory in Togo will also be built under LEED standards.

 The group is also the only group of apparel companies to be certified as carbon neutral across all its processes.

‘‘We are continuously looking at diversifying our manufacturing base and our upcoming facility in Togo will be a cost-competitive alternative to our valued customers and fuel our global growth in bringing some of the best world-class apparel manufacturing to the West African region,’ said Star Garments Group Managing Director A. Sukumaran.

West Africa’s textile and apparel sector holds significant growth potential, with the region having a large and young talent pool. There have been improvements recently that are favourable to the sector, such as building ports and establishing special economic zones.

 This project is an outcome of IFC’s Cotton-to-textiles Value Chain Study in West Africa, focused on developing manufacturing capabilities and building an integrated regional textiles value chain across multiple countries in West Africa. 

As of June 2024, IFC had an active investment portfolio of $ 131 million in Togo that supports agriculture, transport, logistics, access to finance, energy, digital, housing, and health. 

uly 12, Colombo (LNW):Port City Colombo is a groundbreaking special economic zone in Sri Lanka, designed to become a premier global investment destination. It offers varied opportunities in property development and other key sectors, backed by strong investor mechanisms.

Recently, 13 businesses were designated as strategically important under the Colombo Port City Economic Commission Act No. 11 of 2021. 

These businesses, including Horizon Group USA Global LLC, Satguru Travel and Tourism LLC, Pagero Lanka Software Engineering Ltd., KPMG Professional Services Ltd., and others, are granted exemptions and incentives specified in the Act. 

The proposal, introduced by President Ranil Wickremesinghe, aims to attract high-value investments, enhancing Colombo Port City’s status as a global business and investment hub. Detailed benefits will be published in Government Gazette Notifications.

Port City Colombo envisions becoming a world-class corporate hub and driving Sri Lanka’s future economic development. 

It aims to foster large-scale business growth in South Asia through a competitive regulatory environment that improves the ease of doing business. This advanced economic zone is expected to shift Sri Lanka’s economy from a manufacturing and tourism focus to one oriented towards service exports.

Key strategic drivers include transactions in 16 foreign currencies, full capital and profit repatriation, and complete foreign ownership.

These conditions attract international businesses to invest and establish operations, generating jobs and attracting top talent in Sri Lanka and South Asia. Port City Colombo seeks to boost growth in foreign exchange through investments in information technology, logistics, commercial services, and more, contributing to Sri Lanka’s economic development.

The project focuses on inviting more foreign direct investments, allowing commercial entities to qualify as Businesses of Strategic Importance (BSIs) and be designated as Authorized Persons (APs) eligible for incentives. 

The Colombo Port City Economic Commission acts as a single-window facilitator, managing all business-related matters within the zone.

Primary Businesses of Strategic Importance must invest at least USD 100 million per land plot or USD 25 million per social infrastructure plot. Secondary Businesses of Strategic Importance must meet criteria.

 According to this criteria businesses should have  annual global revenue over USD 50 million, employing a minimum of 100 people within five years, or having an entrepreneurial venture valued at least USD 500,000. 

Companies can also qualify by contributing to Sri Lanka’s social and commercial advancement through innovation, knowledge transfer, technology transfer, and research and development.

 Port City Colombo’s long-term vision is to position Sri Lanka as a prime destination for business and innovation.

The project offers multi-sector opportunities, underscoring its readiness for global and regional investment. Interested parties are encouraged to explore further investment opportunities in Port City Colombo.

1. President Ranil Wickremesinghe inaugurated the second phase of the flyover project today (11). This phase, constructed by the Ministry of Transport and Highways at a cost of LKR 5,278 million, spans between Kompanna Veediya and Justice Akbar Mawatha over the railway line. The Road Development Authority, in collaboration with Maga Engineering, undertook this project to alleviate the delays and traffic congestion caused by the frequent closing of railway gates for 109 daily train journeys.
2. The Samagi Jana Balawegaya (SJB) has brought to the attention of the National Election Commission the alleged use of state resources for indirect election campaigning by the incumbent government. In a letter addressed to the Election Commission, the SJB pointed out that the President was scheduled to attend a workshop organized for the Police on July 13. The SJB said that instructions had been received for 15 members representing every community Police unit in the area to participate in the event.
3. Sri Lanka Railways trade unions have decided to call off their strike following talks with the government. Meanwhile. the Executive Grade of the non-academic staff of universities have decided to call off their ongoing strike following discussions with relevant authorities.
4. A fresh maritime dispute between New Delhi and Colombo seems to be brewing with Sri Lanka objecting to India’s plea to the International Seabed Authority (ISA) based at Kingston in Jamaica for rights to explore cobalt-rich ferromanganese crusts in Afanasy Nikitin Seamount in the Indian Ocean.
5. Sri Lanka Police has reached agreements with various government and semi-government institutions in order to combat money laundering and the financing of terrorism. These agreements will facilitate the swift exchange of crucial information necessary for police investigations.
6. The symptoms of the Influenza viral flu being reported among children in Sri Lanka are on the rise, according to the Paediatrician of Lady Ridgeway Hospital for Children Dr. Deepal Perera. Furthermore, Dr. Perera advised to seek medical advice immediately if such symptoms persist.
7. The Inspector of Police (IP) attached to the Colombo Crimes Division (CCD), who was arrested by the Bribery Commission while soliciting a bribe, has reported been injured by another inmate in his cell. A prisoner, who was in the same cell as the police officer, has caused an injury to the Inspector’s face using a sharp improvised weapon, sources said.
8. A Gazette with the necessary regulations on speed limits will be issued soon, State Minister of Transport Lasantha Alagiyawanna said. The State Minister said the Ministry of Transport expects to issue the Gazette, aimed at reducing road accidents, within the next two weeks.
9. The International Monetary Fund (IMF) stressed on the critical need for Sri Lanka to restore fiscal and debt sustainability in order to overcome its ongoing economic crisis. Julie Kozack, Director of the IMF’s Communications Department, highlighted the importance of these measures in response to a question posted by News 1st’s Zulfick Farzan, emphasizing the complex policy trade-offs the country faces.
10. Sri Lanka Cricket (SLC) today announced that the National Men’s T20I Captain Wanindu Hasaranga has decided to resign from the captaincy. Hasaranga said it is in the best interest of Sri Lanka Cricket that he decided to relinquish the captaincy duties and remain in the side as a player, the statement said.

July 12, Colombo (LNW): Chinese scientists, in collaboration with a team of local scientists, have conducted a study on Chronic Kidney Disease of Unknown Etiology (CKDu) in Sri Lanka. The team, which visited Prime Minister Dinesh Gunawardena at Temple Trees, announced that the final report of their study will be submitted shortly.

In addition to supporting the research, the Chinese government has extended a grant for a water purification project in CKDu-affected districts in Sri Lanka. Prime Minister Gunawardena expressed gratitude for China’s assistance with water purification and research on water-borne diseases, initiatives that began during his tenure as Minister of Water Supply.

Prof. Min Yang, Head of the Research Centre for Eco Environmental Sciences in China, highlighted that under the China-Sri Lanka Research Grant Project, a fully-fledged research centre for water technology has been established in Kandy, named the China–Sri Lanka Joint Research and Demonstration Centre (JRDC) for Water Technology. Dr. S.K. Weragoda, Director of JRDC, noted that the centre will collaborate with the Chinese Academy of Sciences (CAS), benefiting from its insights and guidance.

The research on CKDu was prompted by the emergence of this public health challenge in specific geographic areas of Sri Lanka, primarily in the north central and eastern dry zones. Prof. S.H.P.P. Karunaratne revealed that the study confirmed kidney diseases were caused by the presence of calcium and fluoride in groundwater in these regions.

Prime Minister Gunawardena emphasized the need for further research, noting that the excessive metal content in water might be attributed to the long-term use of chemical fertilizers in upcountry plantations, as the rivers originate from the hill country.

The meeting included the participation of MP Yadamini Gunawardena, Prime Minister’s Secretary Anura Dissanayake, and National Science Foundation Chairman Prof. Ranjith Senaratne. The Chinese delegation featured Deputy Ambassador Zhu Yanwei, Prof. Yuansong Wei of the Research Centre for Eco Environmental Sciences, and other leading scientists and engineers.

July 12, Colombo (LNW): The Organization of the Petroleum Exporting Countries (OPEC) Fund has agreed to provide Rs. 30 billion (US$ 100 million) for the Mahaweli Water Security Investment Project, according to Finance State Minister Shehan Semasinghe. He emphasized that this significant funding is a testament to the international trust Sri Lanka has garnered.

The announcement was made during a discussion at the Finance Ministry between Minister Semasinghe and Yusuf Al-Mulhim, the OPEC Fund’s Regional Manager for Asia-Pacific, focusing on the future activities of the Mahaweli Water Security Investment Project. This project is already benefiting from over US$ 300 million in assistance from the Asian Development Bank (ADB).

The OPEC Fund’s additional commitment of over USD 100 million underscores its continued support for the initiative. During the meeting, Minister Semasinghe expressed gratitude to the OPEC Fund for its contributions on behalf of the people of Sri Lanka.

The Mahaweli Water Security Investment Project involves the development of water systems from the Moragahakanda and Kaluganga reservoirs to the Huruluwewa and Mahakandarawa reservoirs. This recent discussion follows Minister Semasinghe’s previous focus on the project during his visit to Austria, with another round of talks held at the Finance Ministry.

Minister Semasinghe highlighted that the allocation of funds by the OPEC Fund for this long-term project aimed at benefiting Sri Lanka’s agricultural sector is a result of successful debt restructuring and ongoing reforms within the country. He emphasized that international trust in Sri Lanka has played a crucial role in securing this support.

The OPEC Fund has previously contributed to 13 completed projects in Sri Lanka and is currently supporting another seven projects under its aid programs.

July 12, Colombo (LNW): The Treasury has agreed to grant Rs. 515 million for the payment of stamp duty and notary fees to provide freehold deeds to apartment dwellers in Colombo city. Urban Development and Housing Ministry Secretary W.S. Sathyananda stated that this allocation will be made according to the approved budget limits.

This amount has been designated by the Treasury for the issuance of title deeds for three flats in Colombo. The initiative to provide freehold deeds for over 50,000 apartment owners in the Colombo district will commence on July 17 at Sugathadasa Indoor Stadium. Over 1,500 dwellers of Mihidu Sethpura, Sirisara Uyana, Metro Housing scheme, and housing schemes under the National Housing and Development Authority will benefit from the first phase of the program.

July 12, Colombo (LNW): Showery condition in the South-western part of the country is expected to be enhanced in the next few days from today (12 July).

Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts. Fairly heavy showers above 50 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night.

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

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

July 11, Colombo (LNW): The government of Sri Lanka is set to enact a new law to identify active companies, aiming to enhance policy-making and economic planning. 

As of March 2024, the country had 199,484 registered companies, with 1,995 new companies established in January 2024 and 4,500 in 2023. This follows a period of economic resurgence after a crisis, with company registrations increasing from 17,819 in 2022 to 22,376 in 2023.

To streamline the re-registration of companies under the Companies Act No. 07 of 2007, the Cabinet of Ministers approved the introduction of a new law. 

This will involve instructing the Legal Draftsman to prepare a Bill based on a developed concept paper. The new law aims to keep data on active companies’ current, aiding in accurate policy-making and economic planning.

Currently, while there are nearly 200,000 registered companies, the existing Companies Act lacks provisions to determine which of these are actively operating. 

The proposed legislative update aims to close this gap, ensuring better regulatory oversight and governance. The proposal, presented by the Industries Minister, underscores the need for this legislative change to improve the system.

In addition to identifying active companies, Sri Lanka is also enhancing transparency regarding beneficial ownership of companies.

 The Fiscal Policy Department of the Ministry of Finance has made it compulsory for companies to disclose beneficial ownership details. This includes information on shareholders with more than a 25% stake or beneficiaries who actively control the company.

New amendments to the Companies Act will be enacted by June 2024 to align with the Financial Action Task Force (FATF) standards. 

These amendments will require the Registrar General of Companies (RoC) to maintain a separate register on beneficial ownership. This register will provide information for investigative purposes and ensure timely access for competent authorities.

The current system lacks a mechanism to identify beneficial ownership, with law enforcement agencies accessing this information through financial institutions.

 Although the Companies Registrar maintains basic legal information on companies, the beneficial ownership data is not widely available. Given the legal gaps, the information provided to financial institutions may not be comprehensive or accurate.

To address these issues, the RoC, in collaboration with the Financial Intelligence Unit (FIU) and other authorities, has drafted amendments to fully align the legal framework with FATF standards. These amendments are pending final review and will be submitted to Parliament for approval and adoption next year.

 Sri Lanka’s new legislative measures aim to improve the identification of active companies and ensure transparency in beneficial ownership. This will support better economic planning, policy-making, and regulatory oversight, aligning with international standards

July 11, Colombo (LNW): Sri Lanka has established a Department for Cinnamon Development to boost the cultivation, production, and export of cinnamon.

 The Government Information Department announced that this new department aims to assist cinnamon producers, suppliers, and exporters while enhancing the quality and variety of cinnamon products through value addition.

In 2022, Sri Lanka’s spice exports, including cinnamon, generated $368.7 million, a decrease from $454.8 million in 2021. In the first half of 2023, spice exports brought in $176 million. Ceylon cinnamon, exclusive to Sri Lanka, received a Geographic Indicator (GI) designation in February last year.

President Ranil Wickremesinghe highlighted the importance of improving high-quality cinnamon cultivation, emphasizing Sri Lanka’s leading position as a major cinnamon producer and exporter.

 Speaking at the inauguration of the Department of Cinnamon Development’s main office and the launch of its official website in Karandeniya, Galle, he noted that this initiative follows a proposal in the 2023 Budget to revitalize the Ceylon cinnamon industry.

During the event, Wickremesinghe received a 10-year roadmap for promoting the industry and a technical publication titled “Cinnamon Handbook.” 

He also awarded Good Agricultural Practices (GAP) and Geographical Indication (GI) certificates to select cinnamon entrepreneurs.

 The President emphasized the need to maximize each acre of land for cultivating high-quality cinnamon varieties and increasing productivity.

He underscored the necessity of expanding cinnamon cultivation areas and integrating cinnamon with other crops to potentially triple or quadruple production.

 He also stressed the importance of boosting sales along with increased production, suggesting the use of both local and international expertise to improve market reach. 

The government is ready to support companies willing to take on this responsibility.

“We are re-establishing this department after 200 years to revive cinnamon cultivation in the country.

 The primary responsibility of this department is to enhance cinnamon production, starting with increasing output. We need to focus on cultivating high-quality cinnamon varieties and expanding the area under cultivation,” Wickremesinghe stated.

The President also emphasized the importance of transitioning from an import-based economy to an export-driven one for the country’s economic stability. 

He called for a strategic plan to restart cinnamon cultivation from Puttalam to Hambantota and attract new investments in various industries, including information technology. He reiterated the need to maintain the current development path to secure the nation’s future.Although Ceylon Cinnamon has been GI-certified, value addition has decreased as exporters believe bulk exportation provides justifiable revenue.

 However, re-exported cinnamon can be transformed into value-added products and sold for higher revenue. Approximately 80-90% of cinnamon exportation occurs in bulk, making value addition challenging due to existing mindsets, similar to other agricultural exports