Friday, January 31, 2025
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Sri Lanka Customs Expedited Clearance to Resolve Colombo Port Congestion

By: Staff Writer

January 31, Colombo (LNW): The Sri Lanka Customs, in collaboration with joint trade unions, has initiated a four-day accelerated container clearance process to address the backlog of shipments at examination yards. This initiative, running until February 2, aims to streamline operations and ensure all pending containers are cleared efficiently, according to Customs Media Spokesman and Additional Director General Seevali Arukgoda.

To facilitate this process, all examination yards and the Valuation Directorate will function at full capacity. Consignees, clearing agents, and transporters are urged to promptly fulfill their responsibilities to support the initiative’s success. Additionally, all relevant government agencies have been notified to extend their cooperation.

Joint Chambers Advocate Immediate Action Plan

Amid ongoing congestion at the Colombo port, a coalition of 29 trade, maritime, and logistics associations has proposed urgent short- and medium-term solutions. These chambers and industry representatives emphasize the necessity of an immediate action plan to mitigate the economic impact of port congestion.

Among their key recommendations is the swift implementation of scanning and screening systems, operational round-the-clock to expedite container processing. They also suggest integrating regulatory agencies, such as the Sri Lanka Standards Institution (SLSI), Food Inspection, and Quarantine Services, to accelerate approval procedures.

The congestion has already caused significant disruptions, affecting exporters who rely on timely imports of raw materials. Delays have led to missed shipping opportunities, increased operational costs, and diminished confidence among foreign buyers.

Reports indicate that some shipping lines are bypassing Colombo in favor of more efficient neighboring ports. If this trend continues, Sri Lanka risks losing its status as a key transshipment hub, leading to higher freight rates and additional costs for importers, freight forwarders, and shipping companies.

The crisis has also impacted local businesses, with transporters, manufacturers, and importers facing revenue losses. As a result, higher costs for essential goods are exacerbating the cost of living for Sri Lankans. The manufacturing sector, in particular, is struggling with material shortages, further threatening economic stability.

Recommendations for Long-Term Efficiency

The chambers have urged the government to act promptly by adopting the following measures:

Expand the Green Channel: Utilizing Customs’ risk management data to identify low-risk cargo and expedite its clearance.

Fast-track Authorizations: Grant swift approvals for Authorized Economic Operators (AEO) and Customs Economic Operators (CEO) to allow trusted businesses to bypass unnecessary inspections.

Improve Risk Management Processes: Address inefficiencies, such as duplicating HS codes requiring repeated approvals, which cause unnecessary delays in customs processing.

Reinstate the Speedy Clearance Committee: A public-private sector task force could be reestablished to streamline customs clearance and improve efficiency.

Enhance Customs Examination Facilities: Temporarily expand the Out Panel Examination Facility or increase customs staff at the Rank Container Terminal (RCT) after office hours to accelerate clearance and reduce congestion.

These recommendations, if swiftly implemented, will help alleviate immediate congestion while setting the foundation for long-term trade facilitation. The chambers stress that failure to act promptly could have lasting repercussions on Sri Lanka’s economy, competitiveness, and reputation as a regional shipping hub.

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