September 27, Colombo (LNW): Sri Lanka’s apparel industry, known for its high-quality and ethically produced garments, faces new challenges and opportunities as it adapts to the European Union’s (EU) latest sustainability and labeling requirements.

 This shift in regulations comes as the EU, a critical market for Sri Lankan exports with over 448 million consumers, moves toward greater transparency and sustainability across global supply chains.

Sri Lanka is already ahead of the curve in some respects. Its apparel industry has successfully piloted the ADB-GS1 Digital Link technology, showcased at COP28, which allows seamless exchange of product data while minimizing environmental impact.

 This initiative will help the country meet the EU’s evolving requirements, supporting the industry’s shift toward sustainability

The EU has long been a leader in promoting environmentally and socially responsible production practices. Recent regulatory frameworks such as the EU Textile Regulation, the Digital Product Passport (DPP), and the German Supply Chain Due Diligence Act are set to reshape the apparel sector. 

These policies aim to ensure that goods entering the EU market meet strict environmental, ethical, and human rights standards.

One of the most significant changes is the introduction of the Digital Product Passport (DPP). By 2027, all apparel products sold in the EU must include a QR code providing detailed information about the product’s origin, environmental impact, and supply chain. 

This digital labeling initiative aligns with the growing consumer demand for transparency and sustainable consumption.

Additionally, the German Supply Chain Due Diligence Act requires that businesses adhere to human rights and environmental standards throughout their entire supply chain. 

Non-compliance could result in substantial fines or exclusion from key markets such as Germany, emphasizing the need for Sri Lankan exporters to adapt quickly.

Malintha Gajanayake, Head of Corporate Affairs and Export Promotions at the Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka), notes that while these new regulations require significant investment in technology and supply chain transparency, they also provide an opportunity for Sri Lanka to stand out in a highly competitive market by showcasing its commitment to sustainable manufacturing practices.

However, these regulations also present major challenges, particularly for smaller manufacturers. 

Meeting the EU’s stringent requirements demands substantial upgrades to technology and infrastructure, particularly in terms of digital labeling and supply chain tracking. 

The cost of compliance—both in terms of product modifications and international marketing—can strain smaller companies, while the varying regulations across EU member states add another layer of complexity.

Despite these hurdles, there are notable opportunities for growth. Sri Lanka’s strong reputation for ethical production positions it well to capitalize on the new EU standards. By complying with sustainability regulations, Sri Lankan apparel manufacturers could enhance their marketability, particularly to European retailers that prioritize ethical supply chains.

September 27, Colombo (LNW): The Colombo stock market, which had been in the ‘red’ for over two weeks prior to the Presidential Election, shifted to ‘green’ territory following the election of President Anura Kumara Dissanayake last Monday.

The ‘bull run’ that began on Monday continued throughout the week, signaling renewed investor confidence in President Dissanayake and his policies. First Capital Research noted that the market had been muted leading up to the election, with trading volumes subdued as investors exercised caution amid political uncertainty. However, as clarity emerged from the election results, market activity saw a significant resurgence.

Investor optimism was bolstered by an agreement with the Ad-Hoc bondholder group, which sparked increased buying interest. Capital Trust Research reported that the market recorded its highest single-day point gain yesterday, accompanied by elevated turnover levels.

The All Share Price Index rose by 0.10% to close at 11,671.87, while the more liquid S&P SL20 Index increased by 0.50% to finish at 3,384.29.

Turnover experienced a substantial uptick, reaching Rs 4.3 billion, marking a 260.4% increase from the monthly average of Rs 1.2 billion and a 7.5% rise from the previous session. The banking sector contributed 39% to the overall turnover, while the real estate and capital goods sectors combined for 23% of the total turnover.

September 27, Colombo (LNW): The Sri Lankan government has officially reinstated the previous visa issuance system, effective midnight yesterday (26). Minister of Public Security Vijitha Herath announced that measures have been implemented in the past 24 hours to resolve recent visa issuance issues.

Under the reinstated system, individuals can once again apply for visas as per the earlier procedures. The government has also launched an immediate audit to investigate irregularities related to services provided by VFS. This audit aims to thoroughly examine any discrepancies, and appropriate legal actions will be taken as necessary.

1. President Anura Kumara Dissanayake has instructed the Treasury to provide a fertilizer subsidy of Rs. 25,000 per hectare to paddy farmers for the Maha season of 2024/25. According to this initiative, the fertilizer subsidy, which was previously set at Rs. 15,000 per hectare, will be increased to Rs. 25,000. This enhanced subsidy will take effect starting October 01.
2. Minister of Public Security Vijitha Herath said that the government has taken steps in the past 24 hours to address the visa issuance issues that have arisen. Accordingly, effective midnight 26, people will once again be able to obtain visas using the previous system
3. President Anura Kumara Dissanayake has directed relevant officials to allocate the luxury vehicles used by previous governments exclusively for essential services, according to the President’s Private Secretary, Ananda Wijepala. Wijepala expressed regret over the misuse of public funds and emphasized that a full review will be conducted, with the public being informed of future actions.
4. The Attorney General has informed the Supreme Court that a series of guidelines have been prepared to eliminate incidents of ragging in state universities. A fundamental rights petition filed by a student affected by a ragging incident at the University of Sri Jayewardenepura in 2020 was taken up before a three-member Supreme Court bench consisting of Chief Justice Jayantha Jayasuriya, and Justices Shiran Gunaratne and Priyantha Fernando.
5. U.S. Senator Ben Cardin (D-Md.), Chair of the Senate Foreign Relations Committee, issued a statement regarding Sri Lanka’s 2024 presidential election, praising the peaceful exercise of democratic rights by millions of Sri Lankans. Senator Cardin stated millions of Sri Lankans peacefully exercised their democratic right in this weekend’s presidential election, demonstrating a deep and meaningful commitment to shaping their country’s path forward.
6. Saliya Wickramasuriya has resigned from his position as the Chairman of Ceylon Petroleum Corporation (CPC) and the Ceylon Petroleum Storage Terminals Ltd. (CPSTL). He has tendered his resignation to the Secretary to the Ministry of Power and Energy.
7. Prime Minister Dr. Harini Amarasuriya has called for an immediate and fair resolution to the issues surrounding the recent scholarship exam paper leak, ensuring that no harm is done to the children affected. She strongly urged schools to immediately stop the practice of inviting politicians to school events, as it distracts from the educational focus and can politicize the school environment.
8. Officials from the Ministry of Power and Energy have informed President Anura Kumara Dissanayake that the country currently has sufficient fuel reserves to meet consumption needs, the President’s Media Division (PMD) reported.
9. Examination Commissioner General Amith Jayasundara has announced that the results of the 2023 GCE Ordinary Level Examination will be released before Monday. He stated that preparations for the release of the results are currently underway.
10. In a remarkable achievement, Kamindu Mendis has become the first-ever player to slam fifty-plus scores in eight consecutive Test matches. The stylish southpaw attained the phenomenal batting feat during Sri Lanka’s ongoing Test match against New Zealand at Galle International Stadium.

By: Staff Writer

September 26, Colombo (LNW): India’s External Affairs Minister, S. Jaishankar, emphasized that the financial assistance provided to Sri Lanka during its economic crisis came without any political conditions.

India extended $4 billion in financial support to Sri Lanka, which amounted to about 5% of Sri Lanka’s pre-crisis GDP and just under 1% of India’s foreign reserves.

This aid surpassed the $3 billion commitment made by the International Monetary Fund (IMF) to Sri Lanka for the period from 2023 to 2027. With Sri Lanka having lost access to most foreign funding sources by early 2022, India essentially became the nation’s lender of last resort.

Backed by several hundred million dollars of American funding, a unit of India’s Adani Group conglomerate and two local partners are undertaking a massive expansion of the city’s main port, the busiest in South Asia.

The goal is to make Colombo an even bigger shipping destination, while slowly prying away the island nation from China, which has pumped billions of dollars into infrastructure projects across Asia and Africa.

While speaking at an event organized by the Asia Society in New York, Jaishankar reflected on India’s timely and significant response during Sri Lanka’s economic crisis.

He remarked, “We acted when Sri Lanka was in a serious economic situation, and, frankly, no one else did. I’m proud we took action, and we did it promptly and in a meaningful way. Our effective assistance totaled $4.5 billion.”

The minister was responding to a query about India’s non-reciprocal aid to its neighboring countries, particularly Sri Lanka and Bangladesh.

When asked about the potential implications of the recent political changes in Sri Lanka, which the questioner hinted might not favor India, Jaishankar maintained that internal political changes in Sri Lanka are matters for its people to decide.

He elaborated, “What happens within Sri Lanka’s political sphere is for them to resolve. Every neighboring country has its own specific circumstances and internal dynamics.

It’s not our role to suggest how their politics should align to suit our interests. In the real world, nations adapt and figure out how to work with each other,” Jaishankar explained.

Touching on broader regional relationships, Jaishankar reiterated that India does not seek to control the political processes of its neighboring countries. “India isn’t attempting to dictate every political decision in the region. That’s not how it works. Each country has its own dynamics,” he added.

Despite shifts in regional politics, Jaishankar expressed confidence in the region’s capacity to manage its relationships effectively. “I believe that in our neighborhood, the realities of interdependence, mutual advantage, and cooperation will continue to serve our shared interests. These factors will always come into play, as they have historically,” he concluded.

By: Isuru Parakrama

September 26, Colombo (LNW): Muditha Peiris has announced that he will be resigning from his position as the Chairman of LITRO Gas Lanka PLC.

Peiris is set to tender his letter of resignation tomorrow (27).

Peiris is known for his contribution for the supply of LP gas to consumers at the lowest rate possible even during the economic hardships befell Sri Lanka.