Logistics industry warns of $50m annual forex leakage over Colombo Port charges paid included in the freight
The Ceylon Freight & Logistics Association (CEYFFA) has warned that Sri Lanka could be losing more than US$50 million annually in foreign exchange under the existing regulatory framework governing charges imposed on importers and exporters at the Port of Colombo via a regulation made by the previous regimes which is yet not been forwarded for […]
The Ceylon Freight & Logistics Association (CEYFFA) has raised concerns about Sri Lanka potentially losing over $50 million annually due to foreign exchange leakage caused by charges imposed on importers and exporters at the Port of Colombo. The issue stems from charges, specifically Terminal Handling Charges (THC), being included in the freight rates and paid to overseas parties, placing additional pressure on the country's foreign exchange position.
CEYFFA has repeatedly brought this matter to the attention of successive governments and challenged the regulations in court, with a recent legal dispute involving Gazette No. 2334/26. The association has called for the Government to review the regulatory framework and prevent unnecessary foreign exchange leakage from the logistics sector.
They urge the reversal of Gazette No. 2334/26, which pertains to the structure of charges for shipping agents, freight forwarders, NVOCCs, and container operators. CEYFFA has also proposed the establishment of a consultative regulatory mechanism involving various stakeholders to determine charges and address operational problems in the shipping and logistics industry.
This call comes amid debates over Colombo's competitiveness as a regional shipping and logistics hub, with different parties advocating for retaining or altering the existing all-inclusive freight framework.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
