Politics · Sri Lanka Bureau
Logistics sector flags $50m annual forex loss at Colombo Port
Sri Lanka's logistics industry has raised concerns over a substantial annual foreign exchange leakage linked to port charges at Colombo, with operators warning that outdated regulatory frameworks are costing the economy tens of millions of dollars.
LSN Sri Lanka ·
The Ceylon Freight & Logistics Association (CEYFFA) has warned that the country stands to lose more than US$50 million annually in foreign exchange under current regulations governing charges levied on importers and exporters at the Port of Colombo.
The association attributes the forex leakage to a regulatory framework established by previous administrations that remains in effect despite concerns over its economic impact. CEYFFA contends that the existing charge structure, which is factored into freight costs borne by importers and exporters, effectively represents an outflow of scarce foreign currency resources from the economy.
According to the logistics sector, the regulations have not been updated or forwarded for review despite their significant implications for Sri Lanka's balance of payments position. The industry body has called for urgent action to address the issue as the country grapples with foreign exchange pressures.
The Port of Colombo, one of South Asia's busiest maritime hubs, handles a substantial volume of the nation's import and export cargo. Any regulatory inefficiencies affecting port operations carry cascading consequences for the broader trading community and the national economy.
The matter highlights ongoing concerns within Sri Lanka's logistics and trading sectors regarding regulatory frameworks that may not align with current economic priorities or best international practices.