By: Staff Writer
August 25, Colombo (LNW): Sri Lanka’s trade and logistics sector is currently grappling with a severe corruption crisis, especially within its customs, Inland Revenue Department (IRD), ports, and airports, Sean Van Dort, Chairman of the Sri Lanka Shippers Council said.
This deep-rooted issue, fueled by outdated, manual systems, is strangling the nation’s export sector and impeding economic growth.
The urgent solution lies in the digitalization of customs and trade operations, which promises to eradicate inefficiencies and bring transparency to the system.
The existing paper-based customs processes are woefully inadequate for the demands of the modern global economy, he added.
These outdated systems are rife with errors, deliberate delays, and a lack of accountability, creating an environment where corrupt practices can flourish. As global trade standards become increasingly stringent, Sri Lanka’s need for a transparent, efficient, and secure customs operation has never been more critical.
Digitalizing customs operations presents a clear path forward. It would significantly reduce clearance times and associated costs, eliminate opportunities for bribery, and restore integrity within the customs framework.
By adopting international best practices and harnessing technology, Sri Lanka can finally liberate itself from the grip of corruption and better integrate into the global digital trade network.
Currently, traders in Sri Lanka are burdened by a complex web of red tape, excessive documentation, and persistent delays at ports—issues that are both frustrating and financially draining.
The additional costs, such as storage fees and demurrage charges, are ultimately passed on to consumers, leading to higher prices and diminishing trust in Sri Lankan exports.
Without decisive action to eliminate corruption and modernize these processes, the future of Sri Lanka’s export sector—and by extension, its economy—is in jeopardy.
The ramifications of inefficiency are immediate and widespread. For example, when customs officers strike or deliberately slow down operations, importers face costly delays that quickly escalate due to accumulated storage and demurrage fees.
This lack of urgency and accountability among customs officials exacerbates the problem, as there are no robust systems in place to monitor and track performance effectively.
The solution lies in a comprehensive digital transformation. Implementing digital tracking and management systems for customs operations can revolutionize the sector, holding officers accountable and reducing opportunities for corruption.
However, the resistance to change remains strong. The absence of digital infrastructure perpetuates corrupt practices, as manual processes allow for document manipulation and bribery.
Beyond customs, inefficiencies at ports, warehouses, airports, and the IRD further highlight the urgent need for modernization.
A new Internal Customs Unit within Sri Lanka Customs, as announced by the Finance Ministry, is a step in the right direction.
This move has been welcomed by the Sri Lanka Shippers’ Council, which hopes that the unit will enhance transparency and public trust. The Council also advocates for extending such reforms to other departments to ensure comprehensive sector-wide improvements.
