Sri Lankan exporters are once again facing mounting uncertainty as operational delays at the Port of Colombo cause international shipping lines to bypass the island’s main maritime hub. The latest disruption has highlighted deep-rooted inefficiencies at the country’s largest port and raised concerns over the government’s lack of far-reaching policies to address structural issues in shipping and customs operations.
Last week, ZIM Integrated Shipping Services Ltd. informed its Sri Lankan clients that its vessel, MV Shanghai 018W, due in Colombo on 14 September, would instead omit the port and discharge cargo in India before returning more than 10 days later.
Such last-minute decisions leave exporters stranded, forcing them to cope with delays of up to two weeks. For industries dependent on time-sensitive raw material imports and export deadlines — apparel, rubber, and electronics in particular these disruptions translate directly into financial losses and missed opportunities.
The root of the problem lies in congested terminal yards and the absence of an efficient Inter-Terminal Transport (ITT) system. Colombo’s multiple terminal operations require transshipment cargo which makes up the bulk of throughput to be moved between terminals using conventional prime movers, an outdated and slow method.
In contrast, India’s newly opened Vizhinjam port, designed as a single-basin facility, offers faster vessel turnaround, posing a real threat to Colombo’s regional hub status.
Despite these challenges, Colombo Port handled 4.7 million TEUs in the first seven months of 2025, a 4% increase compared to last year. However, industry analysts warn that growth in volumes masks the inefficiencies exporters endure. Shipping lines are increasingly prioritizing Indian ports such as Mundra, Cochin, and Vizhinjam, where infrastructure is modernized and delays are minimal.
Exporters argue that under the present National People’s Power (NPP) government, there has been little policy direction to tackle structural weaknesses at Colombo.
Neither customs bottlenecks nor terminal coordination have seen meaningful reforms, while crucial projects including the East Container Terminal (ECT) and West Container Terminal (WCT) remain behind schedule.
Without urgent investment in ITT facilities and a long-term strategy to improve competitiveness, exporters warn Sri Lanka risks losing its transshipment advantage to regional rivals.
Industry sources emphasize that exporters cannot afford repeated disruptions, especially at a time when Sri Lanka is banking on external trade to stabilize foreign reserves. Delays not only undermine export reliability but also discourage international buyers from sourcing through Sri Lanka, weakening the country’s broader economic recovery prospects.
Unless the government takes swift action to accelerate port development and streamline customs processes, the Port of Colombo’s reputation as South Asia’s premier transshipment hub could steadily erode leaving exporters to pay the price.
