*Softlogic Stockbrokers*’ *News Alert –17th February 2025* *All eyes today on AKD’s maiden Budget* • Deliverable and credible Budget envisaged whilst fixing imbalances in economy • Decentralization and poverty alleviation key focus, with emphasis on meritocracy, equal opportunities, level playing field • Salary hike for public servants and relief for working class would require extra revenue • Expect “pro-poor Budget” says Prime Minister in Jaffna • Analysts tip 2025 Budget to unleash opportunities for private sector and local industries • Given continuity in IMF program, measures to sustain reforms and transformation envisaged • MSMEs want President to ensure more practical and genuine relief from banking sector in terms of debt relief and restructuring • Two minor elections could tempt NPP Govt. to be populist via Budget 2025, analysts caution https://www.ft.lk/top-story/All-eyes-today-on-AKD-s-maiden-Budget/26-773146 *Economic sentiment steadies”: Survey* In its February edition, business magazine LMD reports that “the optimistic outlook [for economic sentiment] prevails as confidence strengthens amid positive trends.” LMD adds: “Confidence about the economy is growing in corporate circles, buoyed by the rise of the LMD-PEPPERCUBE Business Confidence Index (BCI).” https://www.ft.lk/front-page/Economic-sentiment-steadies-Survey/44-773144 *CBSL releases first Monetary Policy Report for 2025* The Monetary Policy Report provides forward-looking insights about the economy, particularly in terms of inflation and economic growth. The report also aims to provide an assessment of risks to the projections on inflation and economic growth, considering the ongoing and expected developments on domestic and global fronts. https://www.themorning.lk/articles/nv7gB93iYbdYzP450jOq *Poultry industry calls for tax cuts on maize imports to stabilise prices* • Urges Govt. to remove or reduce Rs. 25 per kilo maize tax in Budget 2025 • Warns of rising egg and chicken prices during Sinhala-Hindu New Year if tax remains • Highlights import tax on maize raises production costs, impacting poultry prices • Calls for livestock farmer support similar to paddy farmers via subsidies, compensation • Proposes using surplus food unfit for human consumption as alternative animal feed https://www.ft.lk/front-page/Poultry-industry-calls-for-tax-cuts-on-maize-imports-to-stabilise-prices/44-773141 *Govt. inaction stalls local pharma growth, SLPMA warns* • Says domestic pharmaceutical manufacturers are competing with imported pharmaceutical products on an uneven playing field due to taxes imposed on critical packaging material imports • Asserts local players are well-equipped to compete with imports in both quality and price https://www.dailymirror.lk/business-main/Govt-inaction-stalls-local-pharma-growth-SLPMA-warns/245-302501 *Tourist arrivals continue momentum in February* Provisional data released by the Sri Lanka Tourism Development Authority (SLTDA) shows that the island nation welcomed a total of 115,043 international visitors, reflecting a 16.8 percent year-on-year (YoY) increase compared to the same period last year. https://www.dailymirror.lk/business-news/Tourist-arrivals-continue-momentum-in-February/273-302499 *POIA makes fresh appeal to recommence plantation of Oil Palm from Govt.* Sri Lanka’s Palm Oil Industry Association (POIA) says they have made a fresh appeal to the new government to allow systematic plantation of Oil Palm which could lead to a stop to the huge FOREX drain to the Country that is being incurred due to imports of edible oil including palm oil. https://www.dailynews.lk/2025/02/17/business/724644/poia-makes-fresh-appeal-to-recommence-plantation-of-oil-palm-from-govt/ *BANKING SECTOR: NPLs decline to 12.3% in 2024* • Easing credit risk and improved macroeconomic conditions support sector resilience • Banking sector assets grow 8.7% year-on-year https://www.themorning.lk/articles/y2eJvyFXyPaMBN2FI2Jy *Apparel exports face price squeeze in 2025* • Volume up, value down as price competition intensifies • Industry shifts focus from expansion to consolidation • Tariff tensions cast uncertainty over market conditions • Bangladesh’s scale advantage pressures Lankan pricing https://www.themorning.lk/articles/dvkRVUsOAuByVVBDcJgG *Ambewela relaunches cheese range* Taking yet another innovative step forward, Ambewela recently relaunched its cheese range, a move designed to align its premium dairy offerings with a range to cater to the evolving needs of consumers. https://www.dailymirror.lk/business-news/Ambewela-relaunches-cheese-range/273-302491 *DIMO Agribusinesses offers effective solutions for enhancing coconut harvests* The domestic market has experienced a surge in coconut prices due to the gap between supply and demand. As a solution for this, good agricultural practices need to be adopted to increase the harvest efficiency in coconut cultivation fields. https://www.dailymirror.lk/business-news/DIMO-Agribusinesses-offers-effective-solutions-for-enhancing-coconut-harvests/273-302494 *Windforce 9-month earnings up 6% YoY* Renewable energy provider WindForce PLC delivered steady growth over the first nine months of the 2024/2025 financial year, with higher revenue across its segments. WindForce saw its earnings expand 6 percent to Rs. 1.65 billion for the nine months ended 31 December 2024 with revenue of Rs. 5.37 billion, a 16 percent year-on-year increase. https://www.dailymirror.lk/business-news/Windforce-9-month-earnings-up-6-YoY/273-302496 *Hayleys reports robust December profits on performance of key sectors, other incomes* Hayleys PLC reported some robust performance for its third fiscal quarter ended in December 2024, propelled by most of its key business lines as plantations, leisure and construction materials and transportation and logistics led the top-line growth reflecting the turnaround in those sectors last year. https://www.dailymirror.lk/business-news/Hayleys-reports-robust-December-profits-on-performance-of-key-sectors-other-incomes/273-302498 _Softlogic Research_