Business

One-year delay over imported salt costs Sri Lanka USD 100 million in for-ex

Published

3 months ago

2026/07/9

Sahan Weerasooriya

A saltern of Sri Lanka: Essential commodity.

…Business impact worsens as 50,000 MT remain idle

The government has suffered an estimated foreign exchange loss exceeding USD100 million following a delay of more than a year in deciding the fate of over 50,000 metric tonnes of imported salt, raising fresh concerns over policy uncertainty, regulatory inefficiencies and their impact on trade, logistics and food security.

According to the Customs House Agents & Traders Association (CHATA), approximately 42,000 metric tonnes of salt imported in around 1,500 containers, together with another 10,000 metric tonnes brought in as bulk cargo, remain stranded due to the absence of a final government decision.

When contacted, CHATA president Mohamed Niyas said the prolonged delay has resulted in mounting financial losses through container detention, shipping line demurrage, port storage charges and deterioration in product quality, while tying up valuable foreign exchange.

“The country has already paid for these imports, yet neither businesses nor consumers have derived any benefit from them. The longer the delay, the greater the economic loss to the country, he noted.

The imports were originally permitted after severe rainfall disrupted local salt production during the first quarter of 2025, prompting the government to temporarily relax import licensing requirements through Extraordinary Gazette No. 2437/04 to prevent shortages.

However, while the emergency measure eased import restrictions, it did not impose a ceiling on import volumes, resulting in substantially larger quantities entering the country than required.

The Association said several consignments subsequently failed to comply with shipment deadlines or mandatory quality standards, particularly iodine content requirements, leaving authorities with complex regulatory issues that remain unresolved more than a year later.

From a business perspective, industry observers warn that the delay has also affected shipping, logistics and port operations, with thousands of containers occupying valuable storage space while importers continue to incur escalating charges.

Adding to the challenge is the expiry of the recommended shelf life of much of the iodised salt. With an average shelf life of around 18 months, prolonged storage has reduced the commercial value of the consignments and may require further testing and processing before any possible release to the market.

Niyas urged the government to adopt a practical solution by transferring the consignments to the National Salt Limited for technical evaluation, possible reprocessing and controlled utilisation instead of pursuing re-export, which he said is no longer commercially viable.

He said such a move could help recover part of the economic value locked in the consignments, minimise further financial losses and ease the burden on both importers and the national economy.

By Ifham Nizam

All News Advertisement

Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

10 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

10 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

10 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.