Business

Sri Lanka’s optimized fashion logistics may be its most compelling post-COVID value proposition

Published

5 years ago

2021/12/11

By Sean Van Dort, Chairman Logistics Sub Committee – Joint Apparel Association Forum

In shipping and logistics, persistence pays. After 2 years of increasing congestion and unprecedented increases in freight rates, there are finally signs that the situation is improving. The majority of Asia’s largest ports are finally showing signs of congestion easing, just ahead of the holiday season.

These improvements couldn’t have come at a better time given that maritime freight rates had been on an upward trend since the second half of 2020. As at September 2021, rates had increased by a stunning 292% Year-on-Year (YoY)1 .

While the consensus is that freight rates would not normalize till at least the end of 2022, they also appear unlikely to increase much further at present, given that two of the world’s top container lines have recently pledged to freeze their spot rates and put off any further increases in spot freight rates for containerized cargo. Barring any further unforeseen disruptions, and supported by similar measures from other carriers we could see further improvements in freight rates much earlier than what was initially projected.

Naturally, these developments have major positive implications for Sri Lankan exporters broadly, and apparel manufacturers, and their buyers in particular, as input costs begin to normalize and bottom-line pressure eases across the board.

Unprecedented challenges met with unsurpassed agility

Prior to COVID, Sri Lanka was one of South Asia’s most connected nations – both in terms of shipping and air travel. Given Sri Lanka’s ideal geographic location, and booming tourism industry at that time. This meant on average, Sri Lanka had on average 200 ships on a monthly basis, and a further 78 flights and freighter operations moving in and out of the country on a weekly basis.

At the peak of the pandemic and lockdowns while the port experienced berthing congestion the total passenger aircraft reduced to zero, and eventually 1 ship and then none at all. While those numbers have since improved, in the interim, it was up to the Sri Lankan logistics industry to keep the country’s exporters afloat, by ensuring that Sri Lanka’s manufactured goods made their way to buyers despite every challenge that arose.

The apparel sector – which accounts for close to 40% of Sri Lanka’s exports, had to take the lead in innovating solutions to the crisis. For the first time, air freight was leveraged above maritime routes in order to import the majority of raw materials, and to even export orders that would have been delayed if we waited for the shipping crisis to resolve.

With Sri Lanka entering its most intense lockdown phase, and airports closing, the industry immediately pivoted to partnerships with specialist freighters until passenger and cargo aircraft could resume. With the situation having improved significantly since then, Sri Lanka’s logistics sector has had its mettle tested, and we have proved our ability to meet unprecedented challenges with outstanding agility. Our success in the face of such immense difficulties is no accident either.

Especially for apparel logistics: time is money

Sri Lanka’s trusted reputation as a leading global powerhouse in apparel is the result of multiple factors – our dedication to quality, our investments in our people, and in technology. But the business of apparel is not just delivering quality, it’s delivering on time.

Everyone understands that fashion and apparel are notoriously fast-paced businesses. With apparel accounting for the vast majority of Sri Lanka’s exports, this has meant that Sri Lankan apparel and logistics firms had to collaborate in order to match international requirements. Hence apparel has played a major role in elevating Sri Lanka into its current position among the most agile supply chains in Asia.

Given Sri Lanka’s ideal location, the island attracts feeder vessels from across the region, meaning that Colombo is often the last port of call in Asia before vessels embark to Western ports. Additionally, most of Sri Lankan Apparel’s buyers tend to have forward contracts already in place with major shipping lines, which means that wherever possible, vessels are legally obligated to call Colombo. While providing immediate benefits to the apparel sector, this also creates opportunities for other Sri Lankan exporters as well.

Given that relative to commodities, apparel adds less weight to ships, it is often the final item to be loaded as cargo, meaning that it can also be unloaded faster. Such minor advantages add up to immense time saving at scale. The same is also true for other Sri Lankan exports.

Internally, Sri Lanka’s logistical capabilities are unmatched, and the industry can confidently guarantee that cargo can be moved from any point in the country and transported into an international port and be ready for loading within 24 hours.

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Business

Rs 160 million + diesel discrepancy at Lakvijaya power plant prompts probe

Published

19 hours ago

2026/09/30

Sahan Weerasooriya

The Lakvijaya power plant in Norochcholai.

By Ifham Nizam

A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.

The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.

The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.

The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.

One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.

A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.

A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.

The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.

That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.

Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.

The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.

The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.

When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.

The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.

Business

Sri Lanka Food Processors Association holds 29th Annual General Meeting

Published

19 hours ago

2026/09/30

Sahan Weerasooriya

The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.

At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.

President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.

1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.

2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.

Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.

Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.

Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.

Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:

Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited

Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.

Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.

Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.

Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.

Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC

The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.

The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.

Business

Uber brings the ‘business class of back seats’ to Sri Lanka with Uber Black

Published

19 hours ago

2026/09/30

Sahan Weerasooriya

New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel

Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.

The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.