*Softlogic Stockbrokers*’ *News Alert –31st January 2025* *Tourism surge poised to hit highest with January arrivals* • Month-end arrivals likely to hit over 253,000 • First 26 days welcome 212,838 tourists, up 21% YoY • Daily average arrivals pick up to 8,186 from 6,791 during same period last year • Top five source markets remain unchanged from last year — India, Russia, UK, Germany and China https://www.ft.lk/front-page/Tourism-surge-poised-to-hit-highest-with-January-arrivals/44-772488 *Sri Lanka raises renewable energy target to 100% in bold policy shift* • Ministry of Energy says the new policy will be centred on a people-centric energy transition that is both “equitable and affordable for citizens” • A specific timeline for achieving the Net Zero target was not disclosed • Shares the government’s aim is a 30 percent tariff reduction within a five-year period https://www.dailymirror.lk/business-main/Sri-Lanka-raises-renewable-energy-target-to-100-in-bold-policy-shift/245-301369 *Sapugaskanda Oil Refinery to receive facelift* Accordingly, Energy Minister Kumara Jayakody discussed with the top management of the Ceylon Petroleum Corporation (CPC) relating to the modernization plans for the Sapugaskanda Oil Refinery and areas requiring special attention. https://www.dailynews.lk/2025/01/31/business/714498/sapugaskanda-oil-refinery-to-receive-facelift/#google_vignette *Govt. allocates Rs. 1.35 t as capital expenditure budget* President Anura Kumara Dissanayake stated that the upcoming budget is expected to allocate Rs. 1.35 trillion as government investment, marking the highest amount spent on capital expenditure by a government in recent times. https://www.themorning.lk/articles/BjPWA1Pj9HRR0i0wWr1d *CBSL likely to hold policy rate at 8%.* • Further easing could overheat the economy and pressure the rupee • Deflation seen as temporary, with inflation expected to return in May https://www.themorning.lk/articles/dLtontUM9ac2GzhnxOox *2024 exports rake in over $ 12.7 b* Sri Lanka’s export sector recorded steady growth in 2024, with cumulative merchandise exports rising by 6.67% to $ 12,705.44 million compared to 2023. Services exports also showed strong performance, increasing by an estimated 8.51% to $ 3,467.15 million. https://www.themorning.lk/articles/ZIYaScdfXghO8WmAKLkK *Tea exporters warn of cash crunch if SVAT is scrapped* Sri Lanka’s tea exporters have urged the government to reconsider its plan to abolish the Suspended VAT (SVAT) system from April 2025, warning that the move will strain working capital, increase borrowing costs, and threaten the competitiveness of the country’s tea exports. https://www.dailymirror.lk/business-news/Tea-exporters-warn-of-cash-crunch-if-SVAT-is-scrapped/273-301367 *Joint Chambers call for immediate action plan to clear port congestion* In light of the ongoing challenges faced at the Colombo port, Joint Chambers, along with key trade, maritime and logistics associations, proposed solutions to mitigate the impact of port congestion on the nation’s economy. https://www.dailynews.lk/2025/01/31/business/714491/joint-chambers-call-for-immediate-action-plan-to-clear-port-congestion/ _Softlogic Research_