99X Technology is pleased to announce that Tracified, a company incubated within its innovation center/accelerator StartupX Foundry, has received an equity investment from 360ip, a venture capital firm based in Tokyo. Tracified is a blockchain-based traceability solution. Mano Sekaram, CEO and Co-Founder of 99X Technology and Founder of StartupX Foundry commented: “I’m delighted to see Tracified reach this milestone, a tipping-point in the journey of becoming a global offering in this space. When we formed StartupX Foundry in 2017, it was as a corporate accelerator to provide a platform to enable our employees to build their own startups. We give them the mentoring, funding and environment to nurture their entrepreneurial spirit. I believe that every employee at 99X has the potential to be an innovator or an entrepreneur. Being able to provide such opportunities is what makes us different and lets us rank consistently as a Great Place to Work. I applaud the founders of Tracified, Dileepa Jayathilaka and Uthpalie Thilakarathna, for their courage to pursue this idea and build a winning product.” Tracified is a blockchain-based traceability solution that connects the entire supply chain. The solution can be applied to scenarios when its crucial to assure the integrity of the supply chain. Whether it’s organic produce or Atlantic salmon, Tracified can identify and record movement, temperature and storage durations across every stage, using a multitude of tracking technologies. A delegation from 360ip visited Sri Lanka in December 2019 to evaluate Tracified and its potential for the Japanese market. Asashi Fujimori, CEO of 360ip Japan, stated: “360ip has a focus on investing and developing advanced science and technology ventures on a global scale. Although Sri Lanka’s potential in developing advanced ICT services and products is known to many, only a very few early-stage technology startups survive beyond seed round, due to the lack of a well-established venture capital financing framework with an effective technology commercialization methodology. 360ip wants to bridge that gap by supporting promising startup ventures to develop their technology and business beyond Sri Lanka.” He further added: “Tracified was identified by 360ip as a promising venture that has clear potential in developing its technology and business on a global scale. As a startup venture backed by 99X Technology, Tracified had adopted a technology development methodology of an excellent standard from its inception, powered by a team of highly skilled tech professionals. Further, its Blockchain technology for modern traceability in diverse business domains has the ability to disrupt and transform conventional global supply chains towards Industry 4.0, while realizing sustainable development goals, to enable fair and transparent trading.” Tracified has been recognized in both national and international forums. In 2018, Tracified won the Founder Institute Scholarship for the Best Sustainability Startup Pitch at the Oslo Innovation Week. The product was also recognized at the 2017 E-Swabhimani Digital Social Impact Awards, where it emerged winner of the Business/Commerce category and at the National Best Quality Software Awards (NBQSA), where it won Gold in the e-Logistics and Supply Chain Management Category. Dileepa Jayathilaka, Co-founder Tracified stated: “This is international recognition of our Blockchain competency. We are proud to be one of the first traceability solutions in the public blockchain. While we have built many award-winning products during the past 10 years through our cutting-edge research, Tracified is the first product we have successfully commercialized with an international partnership, providing us both funding and market access.” Tracified joins the list of Sri Lankan startups receiving global recognition, yet another reason to celebrate Sri Lankan ingenuity.   Photo caption: Tracified Co-founders Uthpalie Thilakarathna and Dileepa Jayathilaka

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Sri Lanka’s banking sector will face a sharp increase in non-performing loans (NPLs) in the second- quarter and beyond with the expiration of the moratorium period,  analysts said. “Asset quality in banks and finance companies was deteriorating for the last 3 years. The construction sector, which the banks had the highest credit exposure to, often suffered liquidity shortages as a result of the delays in receivables from the state sector. Consequently, the banks saw the construction-related non-performing loans (NPLs) rising. In addition, the tourism sector was impacted due to the constitutional crisis and the Easter attacks. We expect a sharp increase in NPLs of banks in the second- quarter and beyond with the expiration of the moratorium period,” ICRA Lanka’s Head of Research, Lalinda Sugathadasa said whilst speaking exclusively to Ada Derana Biz. In response to the COVID-19 crisis the CBSL implemented several initiatives; policy rate cuts, releasing capital and liquidity buffers, relaxing administrative and supervisory compliance requirements, and implementing debt moratorium and credit schemes. “These actions had a profound impact on the banking and the NBFI sector,”  Sugathadasa stressed. Meanwhile, releasing their Mid-year Economic Update, ICRA Lanka, which is a subsidiary of Moody’s Investor Services, stated that they have observed that the construction sector challenges cascading down to the NBFI sector, through small contractors, subcontractors, and other suppliers to the large construction companies as well. “Gross NPA (Non-performing assets) level of the NBFI sector was close to 12% as of March 2020, and the same is expected to reach 16-18% by June 2020,” the credit rating agency stated. Traditionally, the finance companies in Sri Lanka cater to informal and relatively vulnerable segments such as self-employed individuals, micro-businesses, SMEs. These segments are among the hardest-hit segments due to the COVID crisis. Despite the tax cuts by the government in the November 2019 budget, declining asset quality and falling NIMs had a direct impact on the profitability of the banking sector in 1Q 2020. At the peak of the crisis in 2Q, ICRA Lanka believes that the profitability may have dropped further due to envisaged increase in impairment costs associated with the IFRS 9 standard. “With IFRS 9 implementation, movement between delinquency buckets will have a more significant effect on credit costs (loan impairment provisions) of financial institutions. The impact on the profitability of finance and leasing sector would be much acute,” ICRA Lanka said. Risk-weighted capital adequacy levels declined marginally during the first 3 months of 2020, due to credit growth and subdued profitability during the period. ICRA Lanka expects the capital buffers to moderate further as the profitability is likely to be modest over the next 12M. In this context, the CBSL has relaxed the regulatory capital requirements that will help the FIs navigate the challenging period. In terms of the growth outlook, despite the Government of Sri Lanka’s effort to drive credit growth, ICRA Lanka expects financial institutions to have a very low-risk appetite, as these institutions are already grappling with poor asset quality.

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Prima Ceylon (Private) Limited – the premier provider of wheat flour to the nation –announced ‘Prima Ran Piyawara’, an exclusive loyalty programme for the top customers of the company, in partnership with DFCC Bank. The Memorandum of Understanding with DFCC Bank was signed on the 10^th of August 2020, between Mr. Ong Jhon Seon, General Manager, Prima Ceylon and Mr. Lakshman Silva, Chief Executive Officer, DFCC Bank. Prima Ran Piyawara Loyalty Programme, an innovative loyalty programme extended for the 4^th consecutive year as Prima Ran Piyawara Season 04, has many value additions and improvements to recognize and reward the loyalty customers of Prima in a novel way. These elite customers have been with Prima over the last 4 decades uplifting the standards of the bakery and related industries. The partnership with DFCC Bank, will ensure loyal Prima customers being awarded a bespoke co-branded Debit Card loaded with loyalty points that can be used at exclusive partner merchants islandwide. The merchant partners are selected from leisure, healthcare, insurance, jewellery, home appliances, clothing and supermarket sectors; adding choice and variety to suit their lifestyle. Mr. Ravindra de Coonghe, Head of Marketing & Sales, Prima Ceylon Limited commented on the Prima Ran Piyawara Loyalty Programme. “As Sri Lanka’s leading flourmill with a reputation for consistent and high-quality wheat flour, Prima has always considered it an honour to serve our valued customers to help them grow. We recognize them as business partners whose development fuels our own and the loyalty programme is our way of thanking them for their support to us” he said. The partnership with DFCC gives customers a convenient option of accessing loyalty rewards by way of a debit card that can be used to shop at identified vendor partner outlets, giving them a wider option to redeem their rewards. Prima customers can utilize the rewards through exclusive offers provided by the specified vendor partners via the co-branded VISA debit card for the purchase of goods and services. Furthermore, DFCC Bank will offer special promotions, priority service, credit cards with fee waivers and Small & Medium Enterprise (SME) loan facilities to Prima loyalty customers as a value addition with the partnership. Image 1: Exchange of MOU between Mr. Ong Jhon Seon, General Manager, Prima Ceylon (Private) Ltd. and Mr. Lakshman Silva, Chief Executive Officer, DFCC Bank PLC

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Teejay Lanka PLC has reported operating profit of Rs 15.2 million and profit before tax of Rs 13.9 million for the first quarter of 2020-21 but posted a nominal net loss – its first since being listed on the Colombo Stock Exchange (CSE) – directly as a result of the loss of production and orders due to the COVID-19 pandemic. In a filing with the CSE, Sri Lanka’s only multinational textile producer said revenue for the three months ending 30^th June, at Rs 4.7 billion reflected a reduction of 42%. Group gross profit reduced by 73% to Rs 256 million but administrative expenses, although 31% lower than in the corresponding period of last year, totalled Rs 262.8 million for the quarter, resulting in profit before tax falling by 98%. Consequently, the Group posted a net loss of Rs 31.5 million for the three months under review, as against a net profit of Rs 453.6 million in the first quarter of 2019-20. The Teejay Group posted net profit of Rs 2.4 billion for the full year of 2019-20, but revenue and net profit for final quarter of the year declined by 21% and 30% due to the suspension of both production and sales in March 2020. Teejay Lanka Chairman Mr Bill Lam disclosed that in addition to the under-utilisation of capacity Teejay had received updates from customers of pushback of orders as well as credit extensions in the period under review. “To meet these trying times the team negotiated with suppliers to extend the credit period applicable to customers and went on a cost-cutting drive. This included a number of situational cost reduction projects such as salary reductions and freezing of new capital expenditure. These were some of the stringent measures to stabilise the ship in one of the biggest storms this company has had to face in its 20-year history,” he said. Teejay Lanka CEO Mr Pubudu De Silva added that the Group was agile enough to introduce new fabrics for the manufacture of Personal Protection Equipment (PPE). “In addition, Teejay is working on new business opportunities including new customers and new product lines of defensive fabrics to meet customer demands relating to post COVID-19 requirements,” he said. “As a result of the team’s speed in setting up COVID-19 prevention processes, our operations in Sri Lanka got underway by mid-May, and our highly mechanised plants in Sri Lanka were capable of producing the same capacity as pre-COVID-19 levels by the end of May 2020.” Mr De Silva also revealed that reduction of reliance on a single destination for fabric has become high on the agenda of many customers who are now looking for diverse locations to source their fabric requirements. As a result, the last month of the quarter under review saw a significantly better performance than the first two months and this trend is expected to continue into the second quarter, generating a stronger order book compared to that of the first quarter. Teejay Lanka was adjudged the Best Textile Exporter in Sri Lanka at the Presidential Export Awards presented by the Export Development Board (EDB) in 2019, moved up three places in the Business Today Top 30 companies ranking that year and was named among the 100 Most Respected Companies in Sri Lanka by LMD. With manufacturing operations in Sri Lanka and India, Teejay is one of the region’s largest textile manufacturers, and supplies fabric to some of the best international brands across the world. Teejay Lanka PLC is a public quoted company with 39% public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33% stake and Pacific Textiles of Hong Kong which owns 28% of the company. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London. Photo caption: Teejay Lanka Chairman Mr Bill Lam (left) and CEO Mr Pubudu De Silva

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• Pre-tax profitability static year-on-year at LKR 5 Bn
• Post-tax profitability up by 34% to LKR 3 Bn
• Healthy balance sheet expansion of 6% to LKR 562 Bn
• Loan book expansion of 5% to LKR 429 Bn and customer deposits expansion of 6% to LKR 428 Bn
• Cost to income ratio improved to 36%
• CBSL moratorium extended to COVID-19 affected customers amounting to LKR 170 Bn (40% of the Loan Book)
• Over LKR 7 Bn fresh loans approved under CBSL’s “Saubhagya” loan scheme at 4% in the past 2 months

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SriLankan Airlines wishes to clarify its position with regards to the temporary suspension of the Colombo – Shanghai operation by the Civil Aviation Administration of China (CAAC) for a period of four weeks.

The airline operated a charter flight with 223 Chinese national onboard from Dubai to Shanghai via Colombo on the 7^th of August 2020. Prior to this flight SriLankan operated two similar flights from Dubai to Shanghai with zero COVID positive cases.

For the charter flight on 7^th August, the charter operator insisted for all passengers to take the COVID PCR test from the local professional testing facilities which is also used by other prominent international airlines and carried out PCR tests on each of the 223 passengers. This testing process was carried out 72 hours prior to boarding the flight and all passengers boarded the flight with negative test results shown at the time of operation of the special charter flight. These tests were carried out as a pro-active safety measure for the passengers and the crew at a time the PCR test was not considered as a mandatory requirement for China -bound flight out of Dubai.

Despite these measures taken, 25 passengers who were in this charter flight were found positive for COVID upon their arrival in China.

In the wake of the COVID outbreak, The Civil Aviation Authorities in China (CAAC) had introduced a new policy referred as the five one policy, which restricts an airline to operate to one point to China per week. In line with this new policy, SriLankan Airlines had engaged in operating 15 such charter flights repatriating over 3000 Chinese passengers from United Kingdom and Dubai to China without any incidents.

As per the CAAC policy, temporary flight suspensions are given to airlines, if only more than five COVID positive cases are found on a flight. The particular special charter flight operated on 7 August had 23 passengers tested positive for COVID, thus CAAC temporarily suspended SriLankan Airlines for four weeks as per the new regulations in place.

SriLankan Cargo operation remains unaffected and will continue to fly to China when required.

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Panasian Power PLC, has entered into a Power Purchase agreement with the Ceylon Electricity Board (CEB) on 28 July 2020, for the sale of electricity from its 3.0 MW Rathganga Hydro Power Plant. The signed agreement is valid till 4 July 2024 and has the provision for an extension up to 4 July 2039. Panasian Power PLC is one of Sri Lanka’s leading suppliers of clean, renewable energy to the country’s national energy grid. Established with support from the Board of Investment in 2002, PAP has been at the forefront of a pioneering effort to transform the island’s energy generation mix onto a path of affordable, sustainable, and reliable energy for all Sri Lankans through the efficient operation of its three Mini-Hydro Power Plants. Its Rathganga Mini Hydropower Project operates with a capacity of 3MW utilizing the water resource from Rathganga stream at Ratthurugala in Ratnapura District. The plant was commissioned on July 05, 2004. Rathganga MHP generates 11.84Gwh of average annual energy.

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HMD Global, the home of Nokia phones, announces it has successfully closed 230 million USD in the first closing of its current funding round from some of its top global strategic partners. As well as establishing itself as a leading feature phone manufacturer by value, HMD Global has been successful in clearly differentiating its Android™ smartphone offering. Nokia smartphones come with premium Nordic design that is inspired by the company’s European heritage, superior product quality, premium ZEISS imaging experience, and market-leading reliability, as well as security features including a three-year monthly security update promise and two-year Android software upgrade commitment with the Android One promise. As the only key European smartphone player, HMD Global is increasingly popular with both enterprises and consumers who are looking for a pure, secure, and up-to-date smartphone experience. The investment will further fuel HMD Global’s strategic vision in four key areas. Firstly, it will accelerate the company’s mission to make 5G smartphones accessible to consumers across the world, with an emphasis on strong partnerships with US carriers. Secondly, HMD Global will further transition to digital-first offerings as part of a new post-COVID reality. It will also expand its presence in key growth markets, including the recently introduced operations in Brazil, as well as Africa and India. Finally, the investment will help the business strengthen its leading position beyond just hardware and into a holistic mobile service provider. This year alone, HMD Global launched its international data roaming service, HMD Connect, enhanced its mobile cybersecurity capabilities with the acquisition of assets of Valona Labs, and built dedicated resources on software, security and services with a new research and development Centre of Excellence in Tampere, Finland. Jean-Francois Baril, Executive Chairman and Co-Founder, HMD Global, says: “Our unique business model, based on asset-light global deployment and strong partnerships with the best in the industry, is entering a new level of maturity with the valued support of some of the most influential market-makers in mobile devices. I am extremely proud of our significant achievements to date and also thrilled about the immense opportunity before us to accelerate our journey towards excellence.”  Florian Seiche, Chief Executive Officer, HMD Global, says: “Since the very beginning, HMD Global has worked to build strong bonds with our strategic partners. This additional investment further validates our long-term business strategy and is evidence of our collective mission to make modern mobile technology accessible to everyone. Security, reliability and dependability are the cornerstones of our offering, and we will ensure we are using these funds to deliver the best experiences people have come to expect from a Nokia phone. As the only major European smartphone manufacturer, we remain true to our Finnish roots and the hallmarks that our customers trust Nokia phones to be synonymous with. With the support of our heavyweight partners, I am truly excited for the next chapter of Nokia phones.”  

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• Airline will enable people around the world to donate cash or Skywards Miles to be converted to cargo capacity for transport of critical aid and supplies to Beirut
• Humanitarian efforts led by Emirates SkyCargo to work with local and international NGOs on the ground

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Issuers of COVID-19 bonds have been in the spotlight in the sustainable bond markets in recent weeks. The focus has been on what COVID-19 bonds are, who can issue them and how they can be aligned with current market standards, such as the Social Bond Principles. However, a number of investors have come out with statements on COVID-19 bonds in the last few weeks. This is a welcome and positive development as it highlights key aspects of the sustainable finance market: engagement and transparency. Meanwhile, speaking at a webinar organized by the Sri Lanka Banks’ Association recently, Manjula de Silva, Secretary-General/CEO of Ceylon Chamber of Commerce also recommended for Sri Lanka to explore COVID Bond to raise financing for SME sector green recovery. “We have seen that many organizations as well as countries have come up with something called COVID bonds. Which are considered within the social bond category and which is also broadly falling within the sustainable finance market and these COVID bonds have helped to raise finance for relief measures; such as providing support for SMEs. So this is an area that our Central Bank can look at because this may be a way of raising finance at a relatively lower cost,” de Silva stated. De Silva also spoke on sustainable insurance in Sri Lanka and underscored the importance of fast-tracking the implementation of technical assistance program for National Natural Disaster Insurance Scheme (NNDIS) from the InsuResilience Solutions Fund. He also noted that Ceylon Chamber of Commerce, UNEP-DTU and Sanasa Insurance Group are exploring a joint initiative to structure “Affordable Resilience Insurance for MSMEs in Sri Lanka”.

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Hemas Consumer Brands launched Sri Lanka’s most beloved baby care and hair care brands Baby Cheramy and Kumarika to the Nepalese market recently. The event was held at the Everest Hotel, Nepal and was graced by the former Prime Minister of Nepal Mr H.E Jhala Nath Khanal, Mr Roy Joseph- Managing Director, Hemas Manufacturing Pvt Ltd Sri Lanka and Mr Tara Bahadur Kunwar – Chairman of Hajurlai Namaste Trade Link (Pvt.) Ltd, the exclusive distributor for Hemas Brands in Nepal, alongside other dignitaries. Speaking on the entry into Nepal, Mr Roy Joseph, Managing Director, Hemas Manufacturing (Pvt.) Ltd. said “We are excited and happy to expand our footprint into Nepal more so with the right partner to take our brands to consumers in Nepal. This expansion will provide an opportunity for consumers to experience the goodness of our products which have been loved by consumers in Sri Lanka, Bangladesh, India, Maldives and many other countries. The expansion is in line with our strategy to take our most trusted local brands to the region and expand on opportunities to obtain shares within larger markets. Apart from reaching new markets via our top brands, Hemas Manufacturing also expanded our Kumarika Hair Oil manufacturing operations to West Bengal, India earlier this year. Establishing commitment towards excellence the Hemas Manufacturing International Business Division won two accolades for the corporate in 2019, National Chamber of Exporters Awards – Gold Award under ‘Other Industrial Products Category’ & SLIM Brand Excellence – Gold award for Export Brand of the year.  . Trusted by women for decades, the Kumarika range of products has been renowned for hair care in Sri Lanka and is produced with a cocktail of freshly sourced, quality certified local herbs together with other natural ingredients. Kumarika, with a brand promise ‘Nature’s Way to Natural Beauty’ paves the way for healthy, lustrous hair with a range of products consisting of Kumarika Hair Oil, Shampoo, Conditioner and Serum. The products provide nourishment to hair and scalp and address common hair issues of hair fall, hair damage and dandruff. Baby Cheramy, launched in the year 1962 is undoubtedly the brand most trusted by mothers to care for their baby’s skin and has been the most sought-after product in the local market. Winning the Brand of the Year at the SLIM Brand Excellence Awards and many other accolades are clear evidence of this. The Baby Cheramy skincare range consists of Baby Cheramy Soap, Cream, Cologne, Talc and Oil. Endorsed by mothers to protect, nourish and care for their most precious baby’s skin for over 57 years the Baby Cheramy range of products are exported to Europe, Canada, Australia and New Zealand. Hemas Manufacturing (Pvt.) Ltd. is a part of Hemas Holdings PLC, one of the oldest conglomerates in Sri Lanka with a heritage of 70 years. Hemas has been a pioneer in the FMCG, Healthcare, Pharmaceuticals, Transportation, Leisure and Manufacturing sectors within the country. Under the Hemas flagship comes many of the most trusted and valued consumer products touching the lives of millions of consumers every day. Headquartered in Sri Lanka, Hemas also has operations in Bangladesh, West Bengal and Myanmar.

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The Hayleys Group remained resilient amidst unprecedented challenges to record a pre-tax profit of Rs.1.17 billion in the first quarter of the financial year compared to a profit of Rs.285.26 million in the  corresponding  quarter  of last  year.  The  improvement  in  profitability  reflects  the  strong performance  of  the  Group’s  export-oriented businesses  and  ongoing  focus  on  driving  cost efficiencies. As restrictions were gradually eased and the country emerged from the lockdown, the Group rapidly adapted to the new conditions, with operations returning to normalcy. The Group’s ability to navigate the unprecedented complexities arising from COVID-19, particularly given the depth  and  breadth  of  its operations  is  a  testament  to  its  agility  and  the resilience.  The  quick resumption of the Group’s business operations was amply supported by the swift and stringent measures implemented by the Government to curtail the spread of the virus. The Group’s turnover declined by 8% to Rs. 48.23 billion during the quarter, mainly due to subdued conditions in the  Leisure  and  Transportation  &  Logistics  sectors  as  these  industries  were significantly affected by the pandemic. Relentless focus on driving cost rationalisation and process efficiencies through the Group’s ‘Haysmart’ initiatives enabled a 10% reduction in administrative expenses, which in turn supported the 18% growth in EBITDA and 11% in EBIT during the period. Continued losses in the Leisure Sector were offset by strong core performance in export-oriented businesses. The Group’s pre-tax profit increased to Rs. 1.17 billion while profit-after-tax for the period amounted to Rs.561.76 million, compared to a loss of Rs.73.45 million last year. ”While challenges are likely to prevail in the short-term, our medium to long-term growth plans are solid and we are confident of delivering strong earnings in the ensuing quarters” said Mr. Mohan Pandithage, Chairman & Chief Executive of Hayleys PLC. “The Purification and Hand Protection Sectors have a strong pipeline of orders while the Plantation Sector is expected to benefit from the sustained improvement in tea prices. On the other hand, the Leisure Sector continues to grapple with the disastrous consequences of the COVID-19 pandemic, and we urge the Government to continue to extend its fullest support to the sector in these challenging times, which in turn will ensure continued value creation to all stakeholders across the hospitality value chain” The Board of Directors of Hayleys PLC comprises Messrs. Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Jayanthi Dharmasena ,Rohan Karr and Gamini Gunaratne .

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Sri Lanka’s exports have surpassed the $ 1 billion mark in July after six months time period where a similar achievement was only recorded in January during this year. Export Development Board (EDB) Chairman Prabhash Subhasinghe mentioned, “We have witnessed a phenomenal increase in exports in July 2020 with a new record for the year. Sri Lankas strategic location, its reliable manufacturing and export base and proactive and rapid action by the Sri Lankan Government to control Covid 19 have fulfilled our global customers needs. This is the reason for our remarkable recovery in exports, compared to when the crisis hit us. However, we need to be cautiously optimistic as we move towards year end due to the possible resurgence of Covid 19 in the US and European markets.” As per the Customs statistics, earnings from merchandise exports recorded double digit growth rate of 11.31% in July 2020 to US$ 1,090.18 Mn compared to July 2019. Moreover,earnings from merchandise exports in July 2020 increased by 20.3 % compared with the value recorded in June 2020. This strong performance is consistent with the gradual lifting of restrictions due to Covid 19 pandemic within the country and globally. Increases in exports were recorded as; Europe Region (21.17%), South Asia(11.47%) and Middle East (8.91%) in July 2020 compared to July 2019. Being the largest single export destination, United States of America has absorbed US$ 256.09 Mn worth of exports in July 2020 recording a 5.67% increase in comparison to US$ 242.36 Mn absorbed in June 2020. Export Performance of Major Sectors in July 2020 Export earnings from tea in July 2020 which made up 12% of merchandise exports increased by 17.63% y-o-y to US$ 130.93 Mn and the export volume was also increased by 11.24% in July 2020 compared to July 2020. In addition, export earnings from tea recorded 1.39% increase in June 2020 in comparison to June 2019. The expansion was mainly due to higher demand for tea from Turkey and Russia. Earnings from all the major categories of Coconut based products increased in July 2020 compared with July 2019 and a notable performance in export of Coconut Oil, Cocopeat & Activated Carbon. In addition, Export earnings from Rubber & Rubber finished products have increased by 8.78% y-o-y to US$ 85.08 Mn in July 2020 with strong performance in exports of Gaskets, Washers, Seals etc. of Hard Rubber. However exports of Industrial & Surgical Gloves of Rubber have slightly declined by 1.73% y-o-y to US$ 43.74 Mn in July 2020. Export earnings from Spices and Essential Oils have increased significantly in July 2020 compared with June 2019 with significant increase in cinnamon (63.6%) & pepper (46.3%). Further export earnings from Spices and Essential Oils were increased by 30 % in July 2020 in comparison to June 2020. Meanwhile, export earnings from Electrical & Electronic Products (-1.47%), seafood(-9.42%) reorded a decline during the month of July 2020 compared with July 2019. Earnings from exports of Apparel & Textiles and Rubber & rubber-based products grew significantly during the month of July 2020 owing to higher demand for personal protective equipment (PPE) such as face masks, protective suits, surgical gloves, etc.,. PPE related exports have recorded US$ 115.1 Mn in July 2020. Export earnings from Apparel & Textiles increased by16.16 % to US$ 467.04 Mn during the month of July 2020 compared with US$ 402.04 Mn recorded in June 2020. However, 1.37% decline recorded in July 2020 in comparison to July 2019. January – July 2020 Total export earning for January to July 2020 was US$ 5,452.53 Mn compared to US $ 6,909.12 Mn recorded in a similar period of the previous year – a decline of 21.08 %. However the  gap created due to covid in April 2020  is further decreased.This is a 72.5% achievement of Revised Merchandise Export Target of US$ 7,521 Mn in 2020. Major Exports such as Apparel & Textiles (US$ 2403.70 Mn), Tea (US$ 702.59Mn) and Coconut & Coconut Based Products (US$ 356.39Mn) and Rubber & Rubber based products (US$ 434.25Mn) recorded decrease of 25.49%, 11.76%, 18.88% and 3.77% respectively during Jan-July 2020 compared to the similar period of previous year. Petroleum & Other Export crops recorded positive growth rates during the period. The export sectors that shows a positive growth at disaggregate level includes export of Gaskets, Washers, Seals etc. of Hard Rubber, Coconut cream, Coconut Milk, Coconut Vinegar, Coconut Shell Charcoal, Mattress Fiber, Pineapples, Arecanuts, Tamarind, Ginger, Essential oils, lemons, Sweat Potatoes and Lentils etc. Sri Lanka’s Trade Performance in Major Markets The top five export destinations during the period Jan-July 2020 were United States of America (US$ 1,403.54 Mn), United Kingdom (US$ 461.7 Mn) India (US$ 339.4 Mn), Germany (US$ 312.6 Mn) and Italy (US$ 233.5 Mn). In addition, Exports to EU Region recorded an increase of 21.67% to US$ 356.64 Mn in July 2020 compared with July 2019. Meanwhile, exports to United Kingdom as the largest trading partner in the EU Region recorded an increase of 18.66 % to US$ 100.1 Mn in July 2020 compared with July 2019. In addition exports to UK has increased by 53.08% in July 2020 compared to June 2020. Further, exports to Germany, Itally, Belgium, Netherlands, Canada, China, Japan and Turkey have aslo shown better performance during this period. Export of Services The services exports estimated by EDB which includes ICT/BPM, Construction, Financial services, Transport & Logistics and Wellness Tourism show exports of US $ 2,044.6 Mn for te period of Jan-July 2020 compared to US$ 2,364.7 Mn recorded in the corresponding period of the previous year. However, estimated service exports declined by 13.53% during the period of Jan-July 2020 compared with the corresponding period of previous year.                

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• Currently produces 2 million tyres per annum

• Says it has capacity to supply 100% of Sri Lanka’s Truck & Bus tyre requirements

• Increasing Car Radial tyre capacity by 45% within next few weeks; new machinery being installed

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