By: Staff Writer
September 09, Colombo (LNW): Sri Lanka is moving to establish a new Customs inspection center at Kerawalapitiya under a hybrid public-private partnership (PPP) model, with the government now seeking private investors to implement the project.
According to S Minister Nalinda Jayatissa, land belonging to the Sri Lanka Land Development Corporation has already been transferred to Sri Lanka Customs for this purpose.
A committee appointed to study the initiative has submitted recommendations on the most suitable business model, following which Cabinet approval was granted to call for expressions of interest and requests for proposals from potential investors.
The proposed Kerawalapitiya Customs Verification Center is intended to serve as a centralized hub for container inspection outside the congested Colombo Port. Officials expect the project to modernize cargo handling and clearance, reduce delays, and improve transparency long-standing concerns among importers and exporters who have faced high costs due to inefficiencies in the current system.
Potential Gains in Trade Facilitation
If successfully implemented, the center could significantly enhance Sri Lanka’s trade competitiveness by reducing clearance times and curbing rent-seeking practices often associated with manual procedures.
Advanced scanning and automated processing, brought in through private-sector investment, may also reduce opportunities for corruption, while allowing the Customs Department to focus more on regulatory oversight.
Challenges under Current Climate
However, the project comes at a delicate moment. Customs officers have launched a “work-to-rule” campaign in response to the government’s anti-corruption drive, slowing operations at a time when trade facilitation is crucial to economic recovery.
Critics argue that moving ahead with a PPP initiative while staff unrest remains unresolved could deepen institutional tensions, risking delays in implementation and possible resistance from unions that view private involvement as an encroachment on their functions.
Public-Private Balance
While the PPP model offers fiscal advantages by shifting initial capital costs to the private sector, it raises questions over long-term revenue sharing and oversight. Without strong regulatory safeguards, there is the risk of private operators gaining undue influence over sensitive inspection processes. Analysts note that any perception of weakened state control over Customs could undermine confidence in the integrity of trade monitoring.
The Broader Reform Agenda
The Kerawalapitiya project reflects the government’s broader attempt to modernize institutions while addressing systemic corruption. Success will depend not only on selecting the right private partner but also on ensuring transparency in procurement, clear delineation of responsibilities, and robust monitoring mechanisms.
Industry stakeholders stress that genuine consultation with Customs officers and trade unions will be essential to avoid further friction and ensure smooth adoption of new practices.
As Sri Lanka works to streamline its trade regime and attract foreign investment, the Kerawalapitiya inspection center presents both an opportunity and a test.
If executed carefully, it could become a model of reform-oriented infrastructure development. If mishandled, it risks becoming another flashpoint in the ongoing struggle between the government and entrenched institutional interests.
