*ACS Capital Research* *News Alert 31.01.2025* *Tourism surge poised to hit highest with January arrivals* The tourism industry is on track to post its highest January arrivals post-2018, with current trends suggesting that visitor numbers for the month could exceed 253,000. Source:https://www.ft.lk/front-page/Tourism-surge-poised-to-hit-highest-with-January-arrivals/44-772488 *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. Source:https://www.themorning.lk/articles/ZIYaScdfXghO8WmAKLkK *CBSL likely to hold policy rate at 8%* Sri Lanka Central Bank’s policy rate easing cycle has likely ended as further easing of monetary policy could cause the economy to overheat, leading to an undesirable jump in imports which would pressure foreign exchange reserves and hit the rupee, Bloomberg Intelligence said. Source:https://www.themorning.lk/articles/dLtontUM9ac2GzhnxOox *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. Source:https://www.themorning.lk/articles/BjPWA1Pj9HRR0i0wWr1d *Govt. unveils vision of revamping SOEs for future-ready economy* The Government on Wednesday unveiled a bold new approach to State-owned enterprises (SOEs), advocating for a shift away from outdated models toward a dynamic blend of public-private partnership (PPPs). Source:https://www.ft.lk/front-page/Govt-unveils-vision-of-revamping-SOEs-for-future-ready-economy/44-772491 *Sri Lanka raises renewable energy target to 100% in bold policy shift* Sri Lanka has set itself yet another ambitious goal, this time raising the renewable energy target from the current 70 percent to 100 percent, aiming for a complete transition to clean energy. Source:https://www.dailymirror.lk/business-main/Sri-Lanka-raises-renewable-energy-target-to-100-in-bold-policy-shift/245-301369 *ADB to continue assistance to develop renewable energy sector in SL* The Asian Development Bank will continue to provide assistance to develop the renewable energy sector in Sri Lanka, said Takafumi Kadono, Country Director, Sri Lanka Resident Mission addressing the ADB’s Serendipity Knowledge Program ‘Driving Power Sector Reforms for Enhanced Renewable Energy Growth and Sector Performance’ event held in Colombo yesterday. Source:https://www.dailynews.lk/2025/01/31/business/714480/adb-to-continue-assistance-to-develop-renewable-energy-sector-in-sl/