Business
Sri Lanka Shippers’ Council perturbed by rescinding of Gazette No. 2014/10 of Oct. 2017
Importers and exporters are perturbed by the action of the Minister of Ports and Shipping to rescind Gazette No. 2041/10 dated 17th October, 2017, which was initially introduced on October 27, 2013, and has benefited importers and exporters immensely over the years.
Following is the text of a press release issued in this connection: ‘This piece of legislation has helped importers and exporters from anti-competitive practices which have been carried out by service providers for several years. The rescinding of the Gazette has created a ripple effect, which will lead to Sri Lanka’s imports and exports becoming more expensive due to unethical surcharging, thereby becoming uncompetitive and, in turn leading to the loss of its market share in the global market.
‘During the pandemic, the exporters performed exceptionally well with month-on-month increased earnings and helped the government to sustain the economy whilst other industries faced challenges and changing trading practices. With the rescinding of Gazette No. 2041/10, therein lies the question of whether foreign exchange will flow out of the country illegally due to the possible introduction of zero freight again and surcharges levied on non-contractual parties simply because there is no coverage of the same, through the law of the land.
‘By rescinding this Gazette, the Minister of Ports and Shipping has removed the protection of free market competition while, also eliminating the international good practices where price-fixing is not permitted.
‘The recent frequent changes made to shipping regulations in Sri Lanka through a few gazettes have also raised ambiguity and concern among foreign trading partners who are sensitive to policy inconsistencies. With exports being promoted as a solution to the current economic crisis, this is detrimental to attracting potential buyers and to maintain existing clients.
‘Gazette No. 2041/10 re-confirmed 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 are: –
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 thereby all charges being negotiated commercially.
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 safeguarding recipients of goods where freight is already arranged.
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, clearly defining who pays which charges in international trade.
‘All freight charges can be charged within all-inclusive freight rate that gets compared holistically with market rates, so the market forces determine the final price, as opposed to engaging in non-negotiable surcharges.
‘Sri Lankan exporters have had a competitive advantage in shipping costs compared to other countries due to this legislation, and removing the same, open them to unwarranted additional costs which will make them more expensive to their peers.
‘Imports to Sri Lanka will become more expensive after the removal of the legislation, due to the addition of unethical surcharges as in the past (44-line items were charged) and the breaking of freight cost into many parts, which ultimately ends up being charged from non-contracting parties. The result is the rise in inflation and cost of living in the country.
‘Gazette No. 1842/16 dated October 27th, 2013 was further augmented by succeeding governments introducing Gazette No. 2041/10 dated 17th October, 2017 to strengthen the role of the Director General of Merchant Shipping (DGMS), for the effective implementation of setting only a Delivery Order fee outside the freight cost and to take stringent action against perpetrators.
‘Sri Lanka Shippers’ Council wishes to reiterate that, globally accepted market-friendly legislation should not be overlooked or rescinded without adequate reason, solely based on the urging and requests of a few interested parties, connected to forwarding and shipping agencies with the motive of profiteering through unethical surcharging at any cost, at the expense of all the positives mentioned above. It is also vital to keep in mind that our country is facing an economic crisis, and the impact of such steps, being critical for the revival and sustenance of the country’s GDP, economy, and the improving of foreign exchange earnings.
‘The Sri Lanka Shippers’ Council requests the President of the Democratic Socialist Republic of Sri Lanka and the Government to critically consider its representation and to reinstate the Gazette No. 2041/10 dated 17 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 general public of Sri Lanka.’
Business
President signals priority for domestic economic policy autonomy
Govt. in ‘Consideration Mode’ over next IMF programme:
By Sanath Nanayakkare
President Anura Kumara Dissanayake revealed that the government remains in “consideration mode” regarding whether Sri Lanka will enter into a follow-up Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF) once the active facility concludes in March 2027.
Participating in an engaging Fireside Chat at the inauguration of the Sri Lanka Economic and Investment Summit 2026, organised by the Ceylon Chamber of Commerce at the Shangri-La Colombo on October 12, the President emphasised that any future engagement with the IMF must afford adequate policy space for his administration to execute its own sovereign economic vision.
The session, moderated by Bingumal Thewarathanthri, Vice Chairperson of the Ceylon Chamber of Commerce and CEO of Standard Chartered Bank Sri Lanka, saw the Head of State outline a comprehensive roadmap spanning macro-fiscal discipline, port infrastructure expansion, energy sector restructuring, fuel pricing dynamics, and technology training.
Addressing a packed hall of top-tier business leaders, diplomats, and international investors, President Dissanayake noted that while the current IMF arrangement has proceeded without impeding the government’s core economic strategy, a prospective post-March program will undergo rigorous evaluation.
“Our foreign reserve levels are satisfactory for paying our way through the world. However, there is global uncertainty amid the current geopolitical situation. No indicators can say when the war will end or what weather-related disasters could happen,” the President remarked, referencing external vulnerabilities such as Middle Eastern tensions and local climate disruptions like Cyclone Ditwah.
He stressed that while macro-fiscal parameters – including progressive revenue targets and debt-ceiling management – remain fundamental to national stability, the government is acutely conscious of the tax burdens and social costs borne by citizens. Therefore, any future framework proposed by the IMF will be examined through the lens of domestic policy autonomy and social protection.
Turning to critical national assets, President Dissanayake announced bold restructuring plans for the Port of Colombo aimed at elevating Sri Lanka’s position as a dominant regional maritime hub.
East Container Terminal (ECT): The government intends to grant management and operating rights of the ECT to a private sector partner while retaining 100% state ownership. Operating under the Sri Lanka Ports Authority (SLPA), the terminal currently handles approximately 500,000 TEUs against a potential capacity of 3.2 million TEUs. Five to six major global shipping lines have already expressed preliminary interest.
West Container Terminal II (WCT II): A funding requirement of approximately $1.4 billion for breakwater infrastructure is being sought from multilateral development institutions. Preliminary design work, assisted by the Asian Development Bank (ADB), is slated for completion by April 2027, adding another 3.2 million TEUs in annual throughput capacity upon full buildout.
Logistics Hub & Custom Clearance: The SLPA will call fresh tenders for a dedicated logistics center within the Port of Colombo following the resolution of land disputes. Additionally, Cabinet approval has been granted for a Public-Private Partnership (PPP) to establish a 150-container examination facility in Kerawalapitiya to streamline Customs clearance.
Addressing energy security and domestic distribution, the President indicated that existing petroleum agreements with private market participants – including Lanka IOC and Sinopec – would undergo formal review involving the Attorney General.
Expressing concern over distribution bottlenecks in outstation areas where private outlets dominate, President Dissanayake called on private players to balance profit margins with social responsibility during times of price volatility. To guarantee uninterrupted national supply, the Ceylon Petroleum Corporation (CPC) plans to add 75 new filling stations across the island.
Furthermore, to enhance maritime competitiveness, the government is considering lowering the 2.5% tax/levy on bunkering services in Budget 2027 and exploring CPC-private partnerships for bunker fuel storage expansion at the JCT Oil Bank.
In renewable energy, the government will open four major grid transmission lines for private-sector participation and transition away from fixed feed-in tariffs set by the Public Utilities Commission of Sri Lanka (PUCSL) toward competitive bidding to drive down generation costs. Floating solar projects, such as the Ibbankatuwa model, will be prioritised to overcome land availability constraints.
In a bid to address structural workforce shortages in high-tech sectors, the President revealed that Sri Lanka will sign an agreement with Singapore next week to establish a specialized training institute on Wijerama Mawatha in Colombo. The center will focus on rapidly expanding local capacity in Information Communications Technology (ICT) and Artificial Intelligence (AI).
He also highlighted plans to restructure public sector remuneration for highly skilled professionals and proposed an outcome-based procurement model for international promotional campaigns, such as global tourism marketing, where agencies are compensated based on verified growth in tourist arrivals.
Business
‘SL, a top market in region for quality powder coatings’
By Hiran H. Senewiratne
‘Sri Lanka is a top market in the South Asian region for quality powder coatings, Franck Derouen, Business Director, Industrial MEA – West & Central Asia, Axalta Coating Systems (ME) LLC, said.
‘We see significant long-term potential for powder coatings in Sri Lanka and look forward to working closely with Richardson Holdings to offer Axalta’s technology, expertise and global standards for all customers, Derouen said at a launch of the products in Sri Lanka together with Richardson Holdings recently. The event was held at the ITC Ratnadipa, Colombo.
Derouen added: ‘More than a brand transition, this appointment comes as project volumes and material demand continue to rise across Sri Lanka’s construction and property development sectors, giving developers and specifiers greater access to premium performance powder coatings at a time of renewed industry activity.
‘For architects, engineers, extruders and applicators, Axalta’s powder coatings combine UV resistance, gloss retention and corrosion protection with the technical performance expected for long-term architectural projects.’
Group Managing Director, Richardson Holdings, Nazri Nizar said, ‘A strong global brand might open the door. However long-term customer trust is built locally through dedicated support and reliable delivery. The true measure of a distributor lies in the service, care, and operational execution which follows after the product arrives.
‘Combining Axalta’s 150 years of global coating expertise with Richardson’s two decades of deep local relationships and technical know-how, we are bringing customers the best of both worlds.
‘Bridging global standards with local expertise, Richardson Projects will serve as Axalta’s trusted local powder coatings partner, combining global technology with two decades of on-the-ground experience serving Sri Lanka’s construction ecosystem.’
Pradeep Kahawalage, Chief Executive Officer, Richardson Projects, said, ‘After two decades building trust in Sri Lanka’s powder coatings industry, this marks an important new chapter for Richardson. Axalta gives us a global technology partner that matches the standards we have already built our reputation on. We are excited to bring that expertise to Sri Lanka’s construction and aluminium industries in the years ahead.
‘With a focus on sustainability, technical excellence and long-term partnership, Richardson looks forward to supporting architects, developers, fabricators and applicators throughout Sri Lanka with Axalta powder coating as the industry continues to grow.’
Business
99X Sri Lanka takes lead in product engineering and tech solutions
By Steve A. Morrell
Headquartered in Norway, Sri Lanka’s 99x office is emerging as a global leader in digital product engineering and tech solutions.
The above products and their development are prioritized in even local university level digital technology centered courses of study. Priority is increasingly attached to them in the context of career development.
Shehani Seneviratne, Chief Operating Officer of 99x Product Engineering, while reiterating the importance of these subject areas at a recent event stressed their continued centrality in degree level courses of study.
The event brought together members of the 99x leadership team including Odd-Sverre Østlie, Group CEO of 99x, Kalana Wijesekara, Chief Developer Experience Officer, Shehani Seneviratne, Chief Operating Officer, 99x Product Engineering, and Chrishan de Mel, ChiefMarketing and Corporate Affairs Officer of 99x Product Engineering.
Opening the event, Chrishan de Mel shared how 99x’s Agent Control Plane xians.ai was awarded the “Best Agentic AI Solution” at the recently concluded National AI Awards. The platform was also awarded national recognition at the SLASSCOM National Ingenuity Awards as the “Best Innovation in Internal Processes, Technology or Framework” category. Earlier this year, the 99x AI-first initiatives won the overall gold award at the Best Management Practices awards.
As 99x expands its use of AI tools and agents across engineering, support and other functions, the company recognised the need for greater visibility into how these AI-assisted workflows perform. As AI continues to reshape traditional engineering workflows, it also creates new opportunities to improve productivity, quality and speed. This need led to the development of AI Hub, 99x’s new platform for observing and measuring AI assisted workflows.
Speaking at the AI Hub launch, Kalana Wijesekere said, AI adoption is happening at a remarkable pace but adopting more tools does not automatically mean achieving better outcomes. AI Hub gives teams the visibility to understand what is happening within their AI assisted workflows and enables them to make informed decisions about how these workflows should evolve.
Sharing an update on the 99x group’s global journey and market outlook, Odd-Sverre Østlie highlighted the company’s continued expansion across Europe, the Americas and Asia, alongside growing demand from customers seeking to integrate AI into their products and operations. He stated, ‘AI is fundamentally changing the expectations our customers have from their technology partners. They want to move faster, experiment more quickly and increasingly understand how AI can create measurable business value. Our ambition is to be a long-term engineering partner that can help customers navigate this transformation. The launch of AI hub advances 99x’s AI-first strategy moving beyond the adoption of AI tools.’
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