By: Staff Writer
July 14, Colombo (LNW): Exporters urge Government to uphold transparency in freight tariffs to protect Sri Lanka’s global standing
Amid a backdrop of declining orders, rising production costs, and mounting international competition, Sri Lanka’s apparel industry—one of the nation’s largest foreign exchange earners—is facing yet another potential blow. The re-emergence of unofficial port fees threatens to further strain exporters already grappling with fragile post-pandemic recovery and ongoing global economic challenges.
The Sri Lanka Apparel Exporters’ Association (SLAEA), representing the country’s top industrial export sector, has sounded the alarm over recent moves by certain intermediaries to reintroduce Terminal Handling Charges (THC) that are not sanctioned under the Sri Lanka Ports Authority’s approved tariff structure.
SLAEA Chairperson Rajitha Jayasuriya expressed deep concern, stating that such actions risk undermining years of hard-won regulatory reforms aimed at ensuring fairness and transparency in the nation’s freight and logistics framework. She warned that these hidden charges could inflate logistics costs, damage exporters’ competitiveness, and threaten Sri Lanka’s credibility in international trade.
She recalled that the problem of unregulated shipping charges stretches back decades, with the Fair Trading Commission ruling as far back as 1997 against arbitrary fees imposed by shipping agents. Following persistent advocacy by the private sector, the Government implemented key reforms via Gazette No. 1842 in 2013 and Gazette No. 2041/10 in 2017. These mandated that freight costs be presented as a single, all-inclusive figure—ensuring accountability and protecting local businesses.
However, in 2022, the cancellation of these gazettes created fresh uncertainty. The matter escalated to the Supreme Court, which ruled that any such reversal required proper legislative procedures, including a two-thirds majority in Parliament. In response, President Ranil Wickremesinghe re-established regulatory stability through Gazette No. 2334/26 in May 2023, reinstating bundled freight charges.
Despite fears that tighter regulation might deter shipping traffic, Jayasuriya noted that the Port of Colombo’s global ranking rose from 30th in 2014 to 22nd in 2024, with steady growth in import, export, and transshipment volumes.
The SLAEA is now calling on the Government to protect the integrity of the existing regulatory framework and prevent attempts by a few indirect service providers to destabilize it. Jayasuriya emphasized that the apparel industry remains committed to transparent, ethical practices in line with ICC INCO 2020 terms, and is prepared to work with authorities to maintain a fair and globally competitive trade environment.
