*ACS Capital Research* *News Alert 19.05.2025* *CBSL Chief dismisses likelihood of 44% tariff on Sri Lankan exports amid US trade tensions* Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe last Friday stated that the imposition of a 44% reciprocal tariff on Sri Lankan exports to the US is unlikely, citing ongoing diplomatic engagement and recent developments in global trade policy. Source:https://www.ft.lk/front-page/CBSL-Chief-dismisses-likelihood-of-44-tariff-on-Sri-Lankan-exports-amid-US-trade-tensions/44-776636 *Sri Lanka budget deficit down in 1Q 2025, current spending speeds up: analysis* Sri Lanka’s overall budget deficit fell absolutely to 234 billion rupees in the first quarter of 2025, down from 281.3 billion rupees a year ago, but current spending outpaced revenue growth. Source:https://economynext.com/sri-lanka-budget-deficit-down-in-1q-2025-current-spending-speeds-up-analysis-221318/ *CEB moots 18.3% tariff hike for 2H to offset costs, operational challenges* The electricity regulator, the Public Utilities Commission of Sri Lanka (PUCSL) on Saturday announced that the Ceylon Electricity Board (CEB) has formally submitted its proposal for the second electricity tariff revision for 2025, seeking a significant 18.3% increase in electricity tariffs for the second half of the year. Source:https://www.ft.lk/top-story/CEB-moots-18-3-tariff-hike-for-2H-to-offset-costs-operational-challenges/26-776639 *Teejay Group closes FY 2024/25 with remarkable Q4 performance* Teejay Group, Sri Lanka’s first multinational textile manufacturer, delivered a remarkable financial performance by posting a Profit After Tax (PAT) of Rs. 2.8 billion, marking a substantial 152% year-on-year (YoY) growth during the year ended 31 March 2025. Source:https://www.ft.lk/business/Teejay-Group-closes-FY-2024-25-wih-remarkable-Q4-performance/34-776623 *Dialog Axiata Group commits further $ 100 m to expand digital infrastructure* Dialog Axiata PLC has announced a $ 100 million investment to further strengthen Sri Lanka’s digital infrastructure. Source:https://www.ft.lk/front-page/Dialog-Axiata-Group-commits-further-100-m-to-expand-digital-infrastructure/44-776638 *Australia ensures strong bond with Sri Lankan farmers to improve agriculture* Australian High Commissioner to Sri Lanka and Maldives Paul Stephens said that the Australian government would like to strengthen the trade and investment relationship between Sri Lanka and Australia. “Australia is willing to support Sri Lanka’s ongoing reforms to attract more FDI, open up the economy through free trade and integrate into global supply and value chains. Australia is committed to support continuously towards the growth and expansion of agriculture in Sri Lanka” he said. Source:https://www.dailynews.lk/2025/05/19/business/780161/australia-ensures-strong-bond-with-sri-lankan-farmers-to-improve-agriculture/