By: Staff Writer
January 16, Colombo (LNW): Efficient border operations are vital for an island nation like Sri Lanka, where trade plays a critical role in driving economic growth.
However, delays in cargo clearance at Colombo Port have disrupted the smooth flow of goods, leading to increased costs and diminished competitiveness in global markets.
This ongoing issue not only undermines the country’s gross domestic product (GDP) but also inflates operational expenses for businesses and discourages foreign direct investment.
The congestion at the port’s container terminal has reached critical levels. According to Customs Media Spokesman Seevali Arukgoda, the delay in clearing 603 containers already released by Sri Lanka Customs has severely restricted space.
To address this, Sri Lanka Customs initiated a special program, as directed by President Anura Kumara Dissanayake, aimed at expediting container clearance.
On a single day, 459 containers were released from Colombo Port, while another 242 were processed at the Rank Container Terminals (RCT) and associated yards after completing inspections.
Despite the efforts, Customs officials are struggling to inspect and release more than 500 containers daily due to the limited availability of clearance agents and vehicle drivers. As of the latest reports, gate permits have been issued, but 496 containers still await transfer to inspection yards.
The repercussions of these delays extend beyond the port. Deputy Minister of Ports and Civil Aviation, Janith Ruwan Kodithuwakku, revealed that 25 to 30 cargo ships had turned away from Sri Lankan ports due to prolonged clearance times.
These disruptions not only strain the country’s logistics but also highlight inefficiencies that jeopardize its reputation as a reliable trading hub.
President Dissanayake convened a meeting with key stakeholders to address the issue, during which customs officials committed to operating round-the-clock to resolve the backlog.
The Container Transport Owners’ Association noted that clearance processes have improved following these discussions, yet long queues of container trucks continue to plague the Orugodawatta customs yard.
Major importers have raised alarms over escalating costs stemming from these delays. Over 1,000 containers, including essential food items and raw materials, remain stuck, incurring additional costs exceeding Rs. 100 million.
On average, importers are paying an extra Rs. 100,000 per container, with some costs soaring to Rs. 300,000 due to higher transportation charges, port delay fees, and staffing expenses.
These rising costs have led importers to warn that consumer prices will inevitably increase as they pass on these financial burdens.
The Sri Lanka Logistics and Freight Forwarders Association (SLFFA) echoed these concerns, emphasizing that container vehicles are now spending over three days in port queues. Each day of delay adds Rs. 50,000 to Rs. 100,000 to importers’ expenses, further straining their operations.
SLFFA Chairman Channa Gunawardena highlighted the broader implications, noting that delays have prompted 30 cargo ships to bypass Sri Lanka altogether, exacerbating supply chain disruptions and threatening the country’s trade networks.
To compound matters, Customs has announced that all taxes on delayed containers must be paid before their release, further burdening traders already grappling with the crisis. With over 600 containers still awaiting clearance, the situation underscores systemic inefficiencies that demand urgent resolution.
Ultimately, the delays at Colombo Port have placed significant pressure on Sri Lanka’s economy, threatening its trade prospects and increasing costs for businesses and consumers alike.
A coordinated effort involving all stakeholders is essential to restore efficiency, minimize disruptions, and safeguard the country’s economic stability.
