Sri Lanka’s Board of Investment (BOI) is intensifying efforts to resolve key challenges undermining the growth and competitiveness of the country’s export industry.
In a recent meeting, BOI Chairman Arjuna Herath engaged with Sri Lanka Shippers’ Council (SLSC) Chairman Sean Van Dort, Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence, and Brandix Group Head of Logistics Taiyoob Ahamed to address critical concerns.
The discussions highlighted several pressing issues affecting exporters. Persistent economic instability, high inflation, and currency depreciation continue to raise production costs, while limited access to foreign exchange hampers the import of essential raw materials. Inadequate infrastructure, such as underdeveloped transport systems, energy constraints, and congested ports, further impedes efficiency, increasing logistics costs.
Delays in customs clearance and over-reliance on traditional exports like apparel, tea, and rubber compound these challenges, exposing the economy to global demand fluctuations and sector-specific shocks.
Security concerns emerged as a major topic, particularly pilferage at key inspection points. The SLSC reported significant thefts at the Central Verification Terminal (CVT), allegedly involving Customs and BOI officials, as well as incidents of high-value merchandise theft at the Bandaranaike International Airport (BIA) Cargo Village.
These thefts have led to international buyers filing shortage claims, threatening Sri Lanka’s reputation and export revenues.
To mitigate these risks, the SLSC proposed installing CCTV systems at inspection points, including CVT and BIA. “The lack of surveillance jeopardizes the integrity of our supply chain, eroding international buyer confidence and affecting revenues,” stated an SLSC representative.
The SLSC also emphasized the urgent need for digitalization within the BOI to streamline operations. Transitioning to an online application system was recommended to reduce inefficiencies, minimize delays, and improve transparency.
SLSC Chairman Sean Van Dort remarked, “Digitalization will benefit the entire export industry, positioning Sri Lanka as a globally competitive and agile economy.”
Acknowledging these concerns, BOI Chairman Herath assured stakeholders of his commitment to addressing the issues. He confirmed that digitalization initiatives are already underway and pledged to accelerate progress.
Herath also supported enhanced security measures, underscoring the need for continuous collaboration between the BOI and industry representatives to ensure mutual growth and transparency.
By addressing infrastructure inadequacies, enhancing security, and embracing digital transformation, Sri Lanka aims to safeguard its position in the global market and boost export competitiveness.
