1. Press and policy review on economy, trade and investment

2. Economic developments
Economy
Economic developments
GDP growth : 3.8% vs. 4.1% Service sector key contributor
Rupee : 16% drop - So far in 2019: 1.6% increase
Sectors - Manufacturing & Services activities expanding - Tea industry witnesses slowdown - Interventions in paddy market
WB Outlook Deteriorating economic per-formance will continue till 2021
SL’s debt situation
SL’s debt - 78% of its GDP - 60% of its GDP foreign debt - $ 5.9 bn due this year, $ 2.6 bn in the first quarter - Loan repayments between around $ 21 bn
SL’s lenders - China: 14% - Japan: 12% - ADB: 14% - WB: 11%
SL’s current strategy New loans, new policies, long-term: boost exports and FDIs
Labour market
Economically active population million % male, 35.3% female - Inactive population: 7.8 million
Key challenges - Informal labour market: 60% - Aging population - Labour shortage - Accessibility for women in the workforce

3. Current investor sentiment
Investment
Current investor sentiment
Finance Minister Mangala Samaraweera (February 21) “Damage repaired, investor confidence rebuilt”
Nielsen “Stability seems to be returning, impact on business sentiment”
“Volatile political situation keeps investors cautious”
“Dented investor sentiment”
 Investor sentiment seems not fully recovered (yet)
Initiatives
Three policy priorities - Access to global capital markets - Economic growth - Continue reform program
Measures to improve ease of doing business
Northern Province - Measures to attract investment to the region, development framework
Reduction of SRR by 1% Measure taken on 22 Feb with effect from 01 March
FDI
FDIs in 2018 Highest ever FDIs worth $ 2.3 billion
Expectations for 2019 Target value: $ 3 billion
Initiatives Over $ 10 bn FDIs to be attracted from manufacturing and services sectors over the next few years
FDI and export to solve SL’s debt challenge?

4. Trade facilitating initiatives
Exports, imports, GSP+
Exports $ 17 billion, missing target of $ 17.4 billion - 15% export growth
Imports Increase of 8.3%
SL has a history of trade deficits
GSP+ - GSP utilization rate has declined from 73.8% in 2009 to 54.8% in 2017
SL has reaffirmed its commitments
Key industries
Tea - Jan tea exports up 17.5% - SL to increase exports to China
Apparel - Largest export revenue earner - Total trade value over $ 5 billion - Nearly 50% of industrial products exports
Spices - Revenue target 2019: $ 500 m
Tourism million tourists in % increase in tourist earnings - Jan 2019: tourist arrivals up 2%
Trade facilitating initiatives
Ports - Colombo Port “smart port” - Kankesanthurai Harbour: transition into a commercial port
Airport - Lack of capacity at Bandaranaike International Airport - Plan to develop the Palali airport in Jaffna as an international airport
EPZ - The construction of the Bingiriya Export Processing Zone is supposed to commence on March 4

5. Thank you!