An Echelon Media Company
Tuesday May 30th, 2023

Grand Gain Industrial invests in Sri Lanka bra-cup plant

ECONOMYNEXT- Hong Kong based Grand Gain Industrial, has invested 3.5 million US dollars to set up a polyurethane foam bra cups manufacturing facility in Rambukkana, an official said.

“We have our manufacturing branch in China to support to localize and strategize the Sri Lankan manufacturers, “. Surain Senaratne, the Factory Manager of Grand Gain Industrial (Ceylon) told Economy Next.

“We hope to provide 600 direct jobs, along with other indirect jobs as well as there will be some food suppliers, Transporters and testers etc.”

The facility has the capacity to produce 1.5 million bra cup pairs per month and expected to produce 10.6 million pairs garments per year.

Sri Lanka is a top producer and exporter to intimate wear, and is estimated to supply 5 percent of the global demand.

Sri Lanka is also the second-largest exporter of undergarments to the USA and the EU, accounting for 10 percent of the supply to each market, according to Sri Lanka Export development board.

The country process for global brands including Victoria’s Secret, H&M, Tommy Hilfiger and Mark and Spencer. (Colombo/ Mar 7/2023)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka’s stocks end over one-month low on weak macroeconomic sentiments

ECONOMYNEXT – Sri Lanka’s shares end lower on Tuesday as selling pressure continues while investors continues for more clarity on local debt restructuring, an analyst said.

The main All Share Price Index (ASPI) was down 0.50 percent or 42.52 points to 8,532.60, the lowest since April 27.

The most liquid index was up 0.14 percent or 3.42 points to 2,418.90.

“Investors are adopting a wait and see approach on the need for more clarity on debt restructuring and debt optimization and decisions taken at the Policy Review Meeting,” an analyst said.

Sri Lanka’s government was to disclose the stance on domestic debt restructuring towards the end of May, which is why investors have adopted a wait and see approach, however officials have stated there will be a delay in the process of revelation. 

A news article circulating says, non-agreement on the percentage of haircut that the external creditors would take in Sri Lanka’s debt restructuring has taken the Central Bank to the drawing board which has led to the delay in announcing the debt restructuring strategy. 

Sri Lanka’s Monetary Policy Review is scheduled for 01 June 2023, investors are quite optimistic that inflation is to lower and interest rates will decrease, an analyst said.

Analysts said the low volumes seen in the market are due to the debt restructuring concerns, and investors are waiting for the monetary policy review for the next month.

“Stocks went down due to selling pressures resulting from relaxed import restrictions, which are expected to reduce the monopolistic powers held by domestic retailers,” an analyst said.

The main reason for the market’s negative sentiment is the loss of monopoly as import restrictions ease, an analyst said.

The market generated revenue of 575 million rupees, while the daily average turnover was 1.2 billion rupees.

Top losers during trade were Vallibel One, Ceylon Tobacco Corporation and Elipitiya Plantations.

The market generated a foreign inflow of 33 million rupee and the net foreign inflow was 112 million rupees. (Colombo/May 29, 2023)

Continue Reading

Sri Lanka rupee closes at 293.50/294.50 to dollar , bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed at stronger at 293.50 /294.50 against the US dollar in the spot market on Tuesday, while bond yields were unchanged, dealers said.

The rupee closed at 296.75 /297.25 to the US dollar on Monday after opening around 296.50 /297.50 rupees.

A bond maturing on 01.09.2027 closed at 26.50/65 percent unchanged from Monday’s close.

Sri Lanka’s rupee is appreciating amid negative private credit which has reduced outflows after the central bank hiked rates and stopped printing money. (Colombo/ May 30/2023)

Continue Reading

Sri Lanka food producers on countdown; 6-months to reduce trans fat content

ECONOMYNEXT – Sri Lankan food manufacturers only have another six months to reduce the amount of trans fat in food items as the government plans to ban high trans-fat food from January 2024 onwards, an official said.

“A six-month grace period has been given to existing manufacturers, sellers and distributors whose products contain trans-fat,” an official of the Ministry of Health told EconomyNext requesting anonymity.

According to a Ministry of Health gazette issued on… a person shall not sell, offer for sale, expose or keep for sale or advertise for sale, any packaged food product containing trans-fat unless the total amount of trans-fat of such food product per 100 grams or 100 milliliters of the food product is declared on the label of such packaged food product.

However, these regulations will not be applicable for export oriented food products.

Trans-fat is a type of fat that has certain chemical properties and is usually found in processed foods such as baked goods, snack foods, fried foods, shortening, margarine, and certain vegetable oils.

Eating trans-fat increases blood cholesterol levels and the risk of heart disease.

Meanwhile, the World Health Organization (WHO) has praised Sri Lanka for enacting a legislation on trans-fat to protect health and prevent premature deaths from coronary heart disease, a statement from the WHO said.

“Eliminating trans-fats from food supplies is a cost-effective measure with enormous health benefits,” the statement quoting Poonam Khetrapal Singh, Regional Director, WHO South-East Asia said.

“By enacting legislation on trans-fat, Sri Lanka has once again demonstrated its resolve to protect and promote the health of its people”.

The regulations are coming into effect as Sri Lanka is struggling with food insecurity as the country recovers from its worst economic crisis.

However, an improvement in food security across all provinces has been recorded, according to an assessment by a Crop and Food Security Assessment Mission (CFSAM) of two UN agencies. (Colombo/ May 30/2023)

Continue Reading