*ACS Capital Research* *News Alert 24.02.2025* *Manufacturing kicks off 2025 with improvement; services lag* The manufacturing sector has kicked off 2025 with an improvement in January as against December, whilst the services industry has lagged, as per the Sri Lanka Purchasing Managers’ Index (PMI). Source:https://www.ft.lk/front-page/Manufacturing-kicks-off-2025-with-improvement-services-lag/44-773432 *Sri Lanka foreign exchange earnings rise to US$26bn in 2024: analysis* Sri Lanka has earned 26.23 billion US dollars through exports of goods and services, including tourism and labour in 2024, up 12.6 percent from 23.29 billion a year earlier, data from the central bank shows. Source:https://economynext.com/sri-lanka-foreign-exchange-earnings-rise-to-us26bn-in-2024-analysis-206739/ *Inflation eases to -4.0% in January* The overall rate of inflation as measured by the NCPI on a year-over-year basis was -4.0% in January, and inflation calculated for December 2024 was -2.0%. Source:https://www.themorning.lk/articles/lPk35J8q056z3l3xWMdG *Majority of population feels economic conditions ‘getting better’* For the first time since the economic crisis, a majority of the population (55%) feels that economic conditions in Sri Lanka are “getting better”, according to the latest round of the Gallup style ‘Mood of the Nation’ poll conducted by Verité Research. Source:https://www.dailynews.lk/2025/02/24/business/729368/majority-of-population-feels-economic-conditions-getting-better/ *Rs. 3.8 t in short-term debt maturities in 2025* Sri Lanka will have Rs. 3.8 trillion worth of short-term securities maturing in 2025, which requires the government to manage short-term liquidity pressure while over 21% of the total debt will have interest rate changes within the year, the Finance Ministry said. Source:https://www.themorning.lk/articles/AWRl22JgDi30du8E0Tda *Fonterra to sell consumer arm, eyes public listing* Dairy giant Fonterra said on Wednesday (19) it would engage with potential buyers of its global consumer business and integrated businesses over the coming weeks, and also named key management team members in preparation for an initial public offering. Source:https://www.themorning.lk/articles/ZuQhN216jbjjibSJRCub *EDB to establish eight regional export hubs in 2025 to lift GDP growth* Export Development Board (EDB) is gearing up to establish eight regional export hubs across selected districts this year in a bid to improve export contribution to GDP. Source:https://www.dailymirror.lk/business-news/EDB-to-establish-eight-regional-export-hubs-in-2025-to-lift-GDP-growth/273-303010 *Melstacorp reports solid December on key segment performance* Melstacorp PLC reported some solid financial performance for the three months ended in December 2024 on the back of improved performance from some business segments that was possible from improving top-lines and margins which also helped from lower direct costs. Source:https://www.dailymirror.lk/business-news/Melstacorp-reports-solid-December-on-key-segment-performance/273-303006 *HNB Assurance Group powers ahead with 21% GWP growth in 2024* HNB Assurance Group (HNBA and HNBGI) posted yet another year of remarkable performance, improving on its impressive growth rate maintained over the last few years. Source:https://www.dailynews.lk/2025/02/24/business/729390/hnb-assurance-group-powers-ahead-with-21-gwp-growth-in-2024/