*Softlogic Stockbrokers* *News Alert –14th February 2025* *Adani gives up on $ 1 b wind power project* • Move in response to AKD Govt. deciding to appoint another Cabinet negotiations committee and Project Committee to renegotiate the previously approved proposal involving 14 rounds of negotiations over 2 years • Says “As we bow out, we wish to reaffirm that we would always be available for Sri Lankan Government to have us undertake any development opportunity, if it ever considers Adani Group to participate https://www.ft.lk/top-story/Adani-gives-up-on-1-b-wind-power-project/26-773008 *ADB reaffirms commitment to Sri Lanka with $ 900 m investment pipeline for 2025* • Country Director Takafumi Kadono highlights bank’s alignment with SL’s development agenda, broader IMF-backed reform framework • Asserts ADB’s support expands beyond financing, offering policy advisory, knowledge-sharing and partnerships • ADB Country Operations Head Cholpon Mambetova details the bank’s strategic focus and priorities • Says sovereign lending active portfolio as of 1 Jan. 2025 accounted for $ 4 b across 27 projects targeting energy, transport, human development, finance, agriculture, urban development, and governance • Projects approved in 2024 totalled $ 808 m • Port Access Elevated Highway to open in 2H https://www.ft.lk/front-page/ADB-reaffirms-commitment-to-Sri-Lanka-with-900-m-investment-pipeline-for-2025/44-773015 *President holds preliminary discussion on finalising 2025 Budget proposals* A preliminary discussion on the final phase of drafting the Budget 2025, which is scheduled to be presented to Parliament on Monday (17) was held yesterday under the Chairmanship of President Anura Kumara Dissanayake. https://www.ft.lk/front-page/President-holds-preliminary-discussion-on-finalising-2025-Budget-proposals/44-773010 *Govt. hikes production and alcohol taxes* • Raises production taxes on motor vehicles, cigarettes, soft drinks and tobacco as well as excise tax on alcohol by 5.9% from 11 January https://www.ft.lk/front-page/Govt-hikes-production-and-alcohol-taxes/44-773009 *SL faces potential US anti-dumping duties on paper file folders* The U.S. Department of Commerce has initiated anti-dumping duty investigations based on estimated dumping margins ranging from 127.58 percent to 288.36 percent for paper file folders from Cambodia and from 23.57 percent to 91.28 percent for those from Sri Lanka. https://www.dailymirror.lk/breaking-news/SL-faces-potential-US-anti-dumping-duties-on-paper-file-folders/108-302340 *Govt. to achieve IMF tax targets through budget* • 15.1% GDP revenue target crucial to meeting IMF programme goal • Strong 2024 performance provides some fiscal flexibility https://www.themorning.lk/articles/gCcE0Y1GD1rNspIJVgdY *Chinese arrivals pick up during lunar new year* Chinese tourist arrivals in Sri Lanka doubled during the period leading up to and during the first week of the Chinese Lunar New Year with 19,809 arrivals, statistics from the Sri Lanka Tourism Development Authority shows. https://www.themorning.lk/articles/7qc5G7FNvYF0Ud1dl6Qt *Tourism sector urges duty cuts on vehicle imports* Sri Lanka Tourism Development Authority (SLTDA) Chairperson Buddhika Hewawasam urges the government to provide significant concessions on import duties for vehicles used in the tourism sector through the upcoming budget, highlighting that the restrictions on vehicle imports negatively impacted the overall quality of Sri Lanka’s tourism sector. https://www.themorning.lk/articles/juGvPYxfy0NmusLN4Pf9 *Richard Pieris Group PBT up by 137% to Rs.5.4bn in first nine months* Richard Pieris Group, one of Sri Lanka’s largest and most diversified conglomerates, has achieved a Profit Before Tax (PBT) of Rs.5.4 billion during the first 9-month period ending 31st December 2024. https://www.dailymirror.lk/business-news/Richard-Pieris-Group-PBT-up-by-137-to-Rs-5-4bn-in-first-nine-months/273-302338 *Healthguard Distribution-Breathe Free Lanka to enhance Cipla’s portfolio in SL* Healthguard Distribution, the full-fledged pharmacy distribution arm of Sunshine Holdings PLC, recently entered into a strategic partnership with Breathe Free Lanka Private Ltd, a wholly-owned subsidiary of the leading global pharmaceutical company, Cipla Limited. https://www.dailymirror.lk/business-news/Healthguard-Distribution-Breathe-Free-Lanka-to-enhance-Ciplas-portfolio-in-SL/273-302335 *CIC Holdings achieves Rs. 64.6 b revenue with resilient sectoral growth in 9MFY25* Agriculture-rich diversified conglomerate CIC Holdings PLC has recorded a consolidated revenue of Rs. 64.66 billion for the nine months ending 31 December 2024 (9MFY25), an increase of 7.49% YoY compared to the corresponding period of last year. https://www.ft.lk/front-page/CIC-Holdings-achieves-Rs-64-6-b-revenue-with-resilient-sectoral-growth-in-9MFY25/44-773013 _Softlogic Research_