Business

JAAF objects to govt. plans to withdraw Gazette No 2041/10 of Licensing of Shipping Agents Act

Published

4 years ago

2023/01/21

The Joint Apparel Association Forum (JAAF) is perturbed to learn that the government is planning to withdraw Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972, which has been protecting importers and exporters from anti-competitive practices of service providers for many years, a JAAF press release said.

The release adds: ‘Gazette No 2041/10 which is the amended Gazette No 1842/16 of 27th October 2013 reconfirmed four cardinal principles to protect both importers and exporters from service providers who may charge exorbitant fees in addition to freight for the carriage of goods. The four principles of the Gazette that upheld free market values were:

Principle 1 – the cost of carriage of containers from origin to destination must be identified as all-inclusive freight without dividing them into land costs and freight components.

Principle 2 – the service provider can only recover costs incurred from the use of the service to whom the service was provided, and not from a third party, with no such contractual liability.

Principle 3 – goods that landed at port could only indicate “Freight Pre-Paid” or “Freight Collect”. The concept of zero freight was not allowed.

Principle 4- in the case of imports to Sri Lanka the only charge permissible outside the freight was the Delivery Order (DO) fee. All other costs had to be calculated in the all-inclusive freight.

‘Gazette No 1842/16 dated 27th October 2013 was further enhanced by Gazette No 2041/10 to strengthen the role of Director General, Merchant Shipping (DGMS) for the effective implementation of setting only a Delivery Order fee outside the freight cost.

‘However, to the dismay of all importers and exporters of the country, including the apparel industry represented by JAAF and the Sri Lanka Manufacturers and Exporters of Rubber Products (SLAMERP), the Minister of Ports issued the new Gazette No 2302/24 of 20th October 2022 introducing a maximum delivery order fee and new additional charges of US$8/ Cubic Meter under a broader category of a “cost recovery charge”. Thus, contravening the cardinal principles and protections guaranteed to Sri Lankan importers and exporters, curtailing economic activity and driving up the costs of all purchases.

‘The entire import and export industry, including JAAF, vehemently objected to the regulations introduced under Gazette No 2302/24. Our opposition to the newly published Gazette is based on the following reasons:

The Gazette violates the core principle of all-inclusive freight cost that requires the contracting party to bear the full cost of such freight.The Gazette permits freight forwards and shipping agents to charge fees from third parties who are not party to the original contract.

New additional charges will undoubtedly increase the cost of freight, for both imports and exports, which will lead to higher costs of living for the public, and reduce the competitiveness of exports, at a time when export growth is crucial to the recovery of the economy.

‘Moreover, to the further dismay of importers and exporters, on 5th January 2023, the minister tabled a supplement in Parliament to amend the Licensing of Shipping Agents Act No 10 of 1972 to allow himself the authority to set Delivery Order and other fees, whereas the previous Gazette demanded the service providers to obtain the approval of DGMS to do so.

‘The new regulations under Gazette No 2302/24 allow the minister to fix charges on transactions between private parties. By taking over the powers to himself of punitively fixing charges—at his own will. Rather than be a regulator to protect the weaker party in the absence of equal bargaining power, should the stronger party win the confidence of the minister the weaker party can be crushed.

‘While JAAF commends the minister’s promise on the 13th of January 2023 to withdraw Gazette No 2302/24 of 20th October 2022, the industry is alarmed to learn that the ministry secretariat is planning to withdraw Gazette No 2041/10 of October 17th, 2017 as well. The original piece of legislation which carries the globally accepted cardinal principles of markets, shipping, and trading. These principles are reflected in the President’s vision for the country to follow a path of a Social Market Economy and prove to have very serious consequences for the country.

‘JAAF would like to reiterate that globally accepted market-friendly legislation should not be overlooked or withdrawn without reason solely based on the urging and request of a few service providers and at the expense of industries that contribute to the country’s GDP and critical foreign exchange earnings. This move will subject all industries to punitive charges making all export sectors uncompetitive leading to a loss of orders (which is already at a 25-30% year-over-year dip), dampening investor confidence and creating a negative business environment for local entrepreneurs. Most importantly, this move will increase costs to importers, adding to the already unbearable cost of living.

‘Therefore, JAAF urges the government to protect and uphold the Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972, in the interest of importers, exporters and the citizens at large.’

All News Advertisement

Business

Charting a worker-centered AI future: Colombo hosts landmark ITF conference

Published

12 hours ago

2026/09/21

Thilina Walpola

The ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka

By Sanath Nanayakkare

Artificial intelligence and automation present serious challenges for workers – such as job consequences seen in docks and rail systems – and emphasises that workers cannot simply stop technological progress. By gathering young trade unionists in Sri Lanka, the ITF aims to establish key principles for engaging with technology, ensuring workers have a strong voice at the bargaining table, and encouraging constructive social dialogue with corporations and governments.

These compelling words from ITF General Secretary Stephen Cotton underscored the urgent reality facing modern labor as rapid technological advancements sweep across global industries.

Confronting this shifting landscape head-on, the International Transport Workers’ Federation (ITF), in partnership with the National Union of Seafarers of Sri Lanka (NUSS), convened a ground-breaking conference on artificial intelligence in Colombo from September 15–17.

As the ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka, the landmark event marked a critical milestone in balancing technological innovation with worker-centered safeguards.

Representing over 16.6 million transport workers worldwide, the ITF designed the gathering to tackle the multifaceted impacts of AI on safety, operations, workforce development, and governance. Rather than resisting progress, the conference focused on proactive engagement, establishing guiding principles to protect workers’ rights and privacy both at sea and on land.

Key discussions centred on sharing best practices for upskilling and reskilling transport personnel, ensuring that human oversight remains central to AI-driven logistics, routing, and maintenance.

Reflecting on the historic nature of the event, Boa Athu, CEO of National Union of Seafarers Asia Pacific, noted that the conference represented a monumental moment as AI emerges as a permanent fixture of contemporary life.

Highlighting NUSS’s pride in hosting the event in Colombo, Athu emphasised that AI offers transformative potential when guided by strong social dialogue, equitable access to training, and robust governance safeguards.

Ultimately, the Colombo conference demonstrated that the future of transport must be shaped by those who keep the world moving. By uniting international labour leaders, affiliates, port operators, and regulators, the event laid a vital foundation for inclusive policy frameworks that champion fair labour standards, securing a powerful voice for workers in an automated tomorrow.

Business

Bridging the digital divide: Sri Lanka’s airport licence challenge

Published

13 hours ago

2026/09/21

Thilina Walpola

As tourism surges from digitally advanced markets like India, modern independent travelers arriving at BIA find themselves caught in a mismatch between cloudstored credentials and local paper-based transport protocols.

By Sanath Nanayakkare

As Sri Lanka experiences a surge in visitors from its largest tourist market, India, a modern administrative hurdle has emerged at Bandaranaike International Airport (BIA).

While nations like India and Pakistan have successfully transitioned to fully digital driving licences and cashless ecosystems, Sri Lanka’s Department of Motor Traffic counter still requires a physical card to issue temporary local permits, The Island Financial Review learns.

This mismatch creates significant friction for independent travelers who rely entirely on smartphones and cloud-stored credentials. Tourists turned away at the airport – and sometimes redirected to the Werahera office in vain – find themselves unable to legally rent and drive vehicles. Consequently, this policy gap harms local car rental operators, causes tourist frustration, and deprives the government of valuable permit revenue.

The situation highlights a distinct irony: Sri Lankan motorists easily travel abroad using International Driving Permits that are readily accepted in India and Pakistan, yet local infrastructure cannot reciprocate due to outdated verification systems.

Recognizing the problem, Department of Motor Traffic officials have noted that upgrades and new equipment are currently in the works to integrate foreign digital platforms.

For a nation aggressively pursuing a national digitalisation drive, rapidly modernising these transport protocols is essential to keeping pace with global travelers and unlocking the full potential of its tourism economy.

Business

International Afro-Latin Dance Festival in Colombo to grow into a larger regional tourism draw

Published

13 hours ago

2026/09/21

Thilina Walpola

Founder X Director – ALIF – J D RUBAN

ALIF-SL, Sri Lanka’s first-ever international Afro-Latin dance festival, returns for its 4th edition from 25 to 27 September 2026 at the Galle Face Hotel, Colombo. The festival will bring together over 30 international and national artists and 175–200 participants from more than 20 countries, reaffirming its place as the region’s leading platform for Salsa, Bachata and Kizomba.

This year’s edition is headlined by Tropical Gem, the world’s No. 1 salsa team, travelling from Italy to perform and teach alongside a stellar international line-up. Attendees can also look forward to the ALIF Cup Sri Lanka Open, a keenly contested competition judged by an international panel, giving local dancers a rare opportunity to compete and connect with world-class talent.

“Every year, ALIF connects Sri Lanka to the world. With this year’s artist line-up and the ALIF Cup competition, we’re not just hosting a festival, we’re putting Sri Lanka on the map as a top destination for dance,” said JD Ruban, Founder and Director of ALIF-SL

Beyond the dance floor, ALIF-SL continues to support Sri Lanka’s tourism sector, drawing dancers, judges and enthusiasts from across the globe to Colombo and positioning the capital as an emerging regional hub for social dance. Organizers plan to grow the festival into a larger regional tourism draw, introduce new competition categories, and bring in even bigger headline acts in future editions.