In response to the escalating congestion crisis at the Colombo Port, a coalition of 29 leading chambers of commerce, trade, maritime and logistics associations has proposed a comprehensive action plan to mitigate the economic impact and restore operational efficiency.

The Ceylon Chamber of Commerce in a statement issued to the media on Thursday said that there was an urgent need for immediate and medium-term measures to address delays, rising costs, and the potential loss of Colombo’s status as a regional transshipment hub.

“Exporters are facing potential delays with imported inputs, missed shipping opportunities, and increased processing costs, undermining their competitiveness in the global markets and foreign buyer confidence in Sri Lanka. Reports indicate that ships are bypassing Colombo for more efficient neighbouring ports which would be a permanent shift, resulting in lost container volumes for the Colombo port and rising freight rates, along with additional costs for freight forwarders and shipping lines. Importers, transporters and all other stakeholders are also losing business opportunities due to these delays, contributing to higher prices for essential goods and an increased cost of living for the people of Sri Lanka. The manufacturing sector is struggling with material delays and finally this overall situation threatens Colombo’s status as a transshipment hub and poses serious risks to the overall economy,” it said.

To address these challenges, the joint chambers and associations have outlined a series of short-term and medium-term recommendations. The short-term proposals, to be implemented within the next two weeks, include:

24/7 Scanning and Screening Systems:

Establishing round-the-clock operations for screening units to expedite container processing and integrating other border agencies to streamline approvals.

Expansion of the Green Channel:

Leveraging existing importer data to identify low-risk cargo and expand exemptions to reduce delays.

Fast-Track AEO/CEO Approvals:

Accelerating the approval process for Authorized Economic Operators and Customs Economic Operators to minimize inspections for low-risk cargo.

Risk Management Process Improvements:

Correcting duplications in HS codes and streamlining approvals from border agencies to avoid redundant inspections.

Reconvening the Speedy Clearance Committee:

Establishing a public-private committee to fast-track clearance processes.

Expanding Customs Examination Facilities:

Increasing staff and extending operational hours to expedite container releases.

For medium-term solutions, to be implemented within three to six months, the coalition recommends:

Expanding Container Yard Capacity:

Utilizing underutilized yards near the port to alleviate space constraints.

Digitizing Operations:

Prioritizing the digitalization of Customs processes and risk management systems to enhance transparency and efficiency.

Strengthening Manpower:

Rehiring experienced retired customs officials to address staffing shortages.

Enhancing Accountability:

Introducing a structured framework to monitor implementation and hold relevant parties accountable for delays.

Onboarding Additional AEO/CEO Companies:

Expanding the program to include 50 more companies to facilitate faster clearance.

These recommendations have been proposed by the following Chambers and Associations: The Ceylon Chamber of Commerce (CCC), the American Chamber of Commerce in Sri Lanka (AMCHAM), the Association of Clearing & Forwarding Agents (ACFA), the Association of Container Transporters’ (ACT), and the Association of Inland Container Depot Operators (ACDO). Also contributing are the Association of NVOCC Agents (SLANA), the Ceylon Association of Shipping Agents (CASA), the Ceylon Freight and Logistics Association (CEYFFA), the Ceylon National Chamber of Industries (CNCI), and the CHA Traders Association. Additionally, the Chamber of Construction Industry of Sri Lanka (CCI), the Chamber of Young Lankan Entrepreneurs (COYLE), the Container Transport Owners’ Association (CTOA), and the Customs House Agents and Wharf Assistants Association (CHAWAA) are part of this initiative. The coalition further includes the Essential Food Commodities Importers & Traders Association (EFCITA), the Exporters Association of Sri Lanka (EASL), the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), and the Imports Section of the Ceylon Chamber of Commerce. Other key participants are the International Chamber of Commerce Sri Lanka (ICCSL), the Joint Apparel Association Forum Sri Lanka (JAAF), the National Chamber of Exporters (NCE), and the Sri Lanka Apparel Exporters’ Association (SLEA). Rounding out the group are the Sri Lanka Logistics & Freight Forwarders’ Association (SLFFA), the Sri Lanka Logistics Providers’ Association (SLPA), the Sri Lanka Shippers’ Council, the Sugar Importers Association, the European Chamber of Commerce of Sri Lanka (ECCSL), the National Chamber of Commerce of Sri Lanka (NCCSL), and the Women’s Chamber of Industry and Commerce (WCIC), the CCC release said.