Red tape within the bureaucracy contributes to the physical aggravations. Importers of perishables and agri-products often experience clearance delays because local authorities refuse to accept international lab certifications, forcing retesting at local facilities such as Sri Lanka Standards Institute, already operating at maximum capacity.
The result: higher demurrage charges, congestion, and rotting foodstuffs. Industry experts argue that accepting internationally recognized certifications would tilt safety and efficiency.
Terminal performance differences persist as well. State-owned terminals such as SAGT and CICT consistently lag behind privately owned terminals such as SAGT and CICT in productivity. The new West Container Terminal, with computerised handling systems, holds promise but is underused due to a lack of operational integration.
Industry leaders warned that Colombo Port is currently at a crossroads. Despite its prime location and expanding facilities, bureaucratic complacency and outdated rituals threaten to unravel its regional dominance.
Simply increasing capacity will not solve the crisis. Exporters underline the need for predictability timely vessel scheduling, fast clearance, and transparent regulation.
Experts call for across the board reform, from harmonised berth allocation, digital pre-clearing, and simplified customs to total operating system overhaul. With much delay, Sri Lanka may turn its prized maritime gateway into a costly chokepoint losing trade and investment to faster, better-manag olombo Port Struggles Threaten Sri Lanka’s Export Competitiveness
Sri Lanka’s exporters are once again facing mounting challenges as long-standing congestion and procedural bottlenecks at the Port of Colombo disrupt trade flows, forcing major global shipping lines to reroute around the nation’s key maritime gateway. The disruptions have exposed structural weaknesses in port administration and customs coordination, highlighting obstacles to Sri Lanka’s long-held goal of becoming South Asia’s premier transshipment and logistics hub.
For sectors such as garments, rubber, and electronics, which rely on precise delivery schedules, the impact has been severe. Ships bypassing Colombo or arriving weeks late are driving up costs, triggering contract penalties, and eroding customer confidence. At the heart of the crisis are terminal congestion, inefficient inter-terminal transfers, and coordination gaps. Exporters note that transshipment containers still require manual movement between terminals using prime movers—a time-consuming method ill-suited for modern logistics.
In comparison, India’s newly commissioned Vizhinjam Port, with its single-basin design, enables faster vessel turnaround and smoother internal container movement, drawing shipping traffic away from Colombo. While the port handled 4.7 million TEUs from January to July 2025a 4% increase over last year—industry participants warn that these numbers mask growing operational strain.
The financial burden on Sri Lankan exporters is significant. Container shunting costs between Rs. 100,000 and Rs. 300,000 per shipment for haulage, demurrage, and labor, heavily impacting small-scale exporters with narrow margins. Official estimates project total container handling at 7.76 million TEUs in 2025, of which 6.2 million are transshipments. Yet berth waits of 48–72 hours persist due to congestion, incomplete infrastructure integration, and weak terminal coordination.
Bureaucratic red tape further aggravates delays. Importers of perishables and agricultural products often face clearance problems as local authorities reject internationally recognized laboratory certifications, forcing costly retesting at the overburdened Sri Lanka Standards Institute. The result is rising demurrage charges, increased congestion, and wasted produce.
Terminal performance varies sharply. State-owned terminals consistently lag behind private operators, while the newly built West Container Terminal, equipped with computerized handling systems, remains underutilized due to integration issues.Industry leaders warn that Colombo Port stands at a critical crossroads. Despite its strategic location and expanding capacity, outdated procedures and bureaucratic inertia risk eroding its regional dominance. Expert’s stress that increasing capacity alone will not resolve the crisis. Instead, Sri Lanka requires harmonized berth allocation, digital pre-clearance, streamlined customs, and a comprehensive operational overhaul. Without decisive reform, the nation risks turning its prized maritime gateway into a costly chokepoint, losing trade and investment to faster, better-managed regional competitors
