*ACS Capital Research* *News Alert 03.02.2025* *External Sector improves notably in 2024* The External Sector of the Sri Lankan economy improved notably in 2024, with robust inflows to the current account for the second consecutive year and strengthened reserves. Source:https://www.dailynews.lk/2025/02/03/business/716007/external-sector-improves-notably-in-2024/ *Sri Lanka ends five-year vehicle import ban sparking mixed concerns* Sri Lanka’s long-awaited decision to lift its five year ban on vehicle imports has sparked mixed reactions from industry leaders, with concerns emerging over affordability, taxation policies and the broader economic impact. Source:https://www.ft.lk/top-story/Sri-Lanka-ends-five-year-vehicle-import-ban-sparking-mixed-concerns/26-772594 *Construction sector continues expansion* Construction sector continued to expand their activities through December 2024, extending their months-long expansion as reflected by the sector Purchasing Managers’ Index (PMI) for the month. Source:https://www.dailymirror.lk/business-news/Construction-sector-continues-expansion/273-301534 *CCPI-based headline inflation remain negative in January* In line with the Central Bank’s near term projections, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) remained in the negative territory for the fifth consecutive month, recording a deflation of 4.0% in January 2025 compared to the deflation of 1.7% in December 2024. Source:https://www.ft.lk/front-page/CCPI-based-headline-inflation-remain-negative-in-January/44-772588 *Teejay Lanka delivers resilient growth in Q3 amidst dynamic market conditions* Teejay Group, Sri Lanka’s first multinational textile manufacturer, announced a Year-to-Date (YTD) Profit after Tax of Rs. 1.9 billion for Q3 (third quarter) of FY2024/25, marking a remarkable 234% increase compared to the same period last year. Source:https://www.ft.lk/business/Teejay-Lanka-delivers-resilient-growth-in-Q3-amidst-dynamic-market-conditions/34-772583 *Cathay Pacific to increase flights to Colombo from 2025* Cathay Pacific is set to increase its flight frequency from Colombo, raising services from three to five flights per week from March 2025, according to Civil Aviation Authority of Sri Lanka Deputy Director General Rayhan Wanniappa. Source:https://www.themorning.lk/articles/ZRRByt30iY5gBj2fa56l