The country’s container clearance backlog has plunged the logistics and freight forwarding industry into chaos, with delays, rising costs and outdated systems creating a ripple effect felt across the economy. Businesses are struggling to cope with the congestion in the Port, lengthy Customs procedures and infrastructure limitations, leaving consumers to shoulder the burden through higher prices, product shortage and compromises in the quality of essential goods such as food and medicine.
The mounting inefficiency has already forced around 25 to 30 cargo ships to bypass the Colombo Port in the recent weeks, unable to dock in time due to delays. The contributing factors include a 30 percent staff shortage at Sri Lanka Customs, inadequate facilities and a 70 percent reduction in container inspections to minimise congestion. However, industry insiders said that these were merely symptoms of deeper structural problems within the Port and the Customs.
A shipping industry veteran, speaking on the condition of anonymity, pointed to a critical shortfall. He said the Sri Lanka Customs – the nation’s top revenue earner lacked a dedicated container yard for cargo inspections and clearance. Despite collecting a record-breaking Rs. 1.5 trillion in revenue in 2024, Customs officials were forced to operate without basic infrastructure. “It’s not rocket science—find a suitable location and set it up,” the insider said, adding that proper facilities could improve efficiency without tarnishing Sri Lanka’s reputation as a reliable trade hub.
Streamline import clearance
A 2020 study by the Asian Development Bank (ADB) recommended the setting up a 25-acre container clearing yard in Kerawalapitiya to handle 3,000 containers to streamline import clearance. However, the proposal remains stuck in bureaucratic limbo, awaiting Finance Ministry approval.
The ADB and the Japan International Cooperation Agency (JICA) are pushing forward with the South Asia Sub regional Economic Cooperation (SASEC) Port Access Elevated Highway project. The 5.3-kilometre toll road will link the New Kelani Bridge to the Colombo Port to reduce congestion and improve freight logistics.
In an urgent response to the escalating crisis, President Anura Kumara Dissanayake convened a high-level meeting last Sunday with Customs officials and Port service providers. The President ordered the elimination of clearance delays within four days, by introducing measures such as round-the-clock Customs operations, allocation of additional land for container storage and addressing staff shortage in regulatory agencies.
Challenges remain
Despite these efforts, challenges remain visible. Long queues of container trucks snake outside the Customs yards, while over 600 cleared containers are unclaimed at the Colombo Port due to delays by importers and clearing agents. This bottleneck further strains Port capacity and contributes to inefficiencies.
Sri Lanka Customs, Additional Director General, Seewali Arukgoda said that, following the President’s directive, 459 containers were released from the Colombo Port and 242 more from various yards last Monday. However, the Customs can only process about 500 containers daily, significantly below the 1,400–1,500 containers released by the Colombo Port. Compounding the issue, low attendance by clearing agents and lorry drivers on public holidays exacerbates the backlog.
“The situation is critical,” said Secretary General of the Association of Container Transporters, Nimal Ameresekere. He said, “Until systemic improvements are made, these delays will continue to disrupt the supply chain, raise costs and impact consumers directly.”
As the authorities scramble to address immediate challenges, experts call for long-term reforms, including modernising clearance systems, digitising processes, and investing in infrastructure. Without these changes being made, Sri Lanka risks losing its standing as a key logistics hub in South Asia.
Drivers struggle amidst cargo clearance delays
Sri Lanka’s container clearance crisis is not only jamming Ports and warehouses but also leaving transport truck drivers stuck in a gruelling limbo. While the authorities scramble to ease congestion at the Colombo Port and beyond, the fallout is being felt across the supply chain, from freight yards to driver cabins.
The Colombo Port, the country’s busiest gateway for imports and exports, remains at the heart of the chaos. Despite efforts to clear the backlogs—such as introducing additional storage areas and fast-tracking container movement—hundreds of containers remain stuck, clogging warehouses and delaying crucial goods from being released. Recent clearance measures helped clear 547 containers in a single day, but stakeholders said these are short-term fixes for a deeper systemic issue.
For container truck drivers, the crisis is more than an operational headache—it’s a matter of survival. Drivers said that they wait for days, even weeks outside Ports and yards unable to unload or pick up goods due to clearance delays.
“I’ve been sitting here for three days, waiting for my turn,” one driver said, frustration etched on his face. Others recount even more harrowing experiences, including a fellow driver who was found dead in his truck after waiting for three days in the sweltering heat.
Safety concerns
The psychological toll is compounded by safety concerns. Drivers have raised alarms about being targeted by drug addicts near container yards, forcing many to remain on high alert while on the job. The Association of Container Truck Owners has even threatened to withdraw services unless better security measures are implemented.
Adding to the pressure is the lack of space at container yards and warehouses which are packed to capacity. Efforts to allocate additional storage land near the Colombo Port have provided some relief, but it’s clear the system is buckling under the strain.
“Even after loading goods onto the trucks, we’re often stuck for another week due to clearance bottlenecks,” the drivers said, adding that the delays are preventing them from earning a living.
The ongoing chaos has disrupted the supply of goods nationwide, threatening shortages and price hikes that will ultimately be borne by consumers. The authorities, including President Dissanayake, have issued directives to eliminate delays within days, but the scale of the problem suggests a longer road to recovery.
For now, container drivers remain in the trenches of Sri Lanka’s clearance crisis—caught between the inefficiencies of a strained system and the need to keep the country’s supply chains moving. Without decisive action, the human and economic cost of this crisis could rise further.
The following is an interview with the President of the Sri Lanka Logistics and Freight Forwarders Association (SLFFA), Channa Gunawardena. He spoke of the widespread disruptions currently impacting the logistics and freight forwarding industry.
Q: How has the current backlog in container clearance affected your company’s operations and overall efficiency?
A: Our customers rely on specific timeframes to ensure their cargo is imported, cleared through customs, and delivered to their sites. With the current backlog, we are unable to meet those deadlines. This has forced us to deploy additional staff for customs clearance, as employees are stuck handling delayed shipments. The situation has significantly impacted our overall efficiency.
Q: What specific challenges have you faced in dealing with the delays at the Port, and how have these impacted your clients?
A: The main challenge is the delayed clearance process, which has increased our overall cost per shipment. These costs, including transport charges, transport demurrage, and equipment detention fees, are eventually passed on to our clients. Unfortunately, this also impacts end consumers due to cost escalations.
Q: Can you describe your company’s role in resolving the container clearance delays? How are you collaborating with Sri Lanka Customs and Port-related service providers?
A: Through the SLFFA, which serves as the apex body for freight forwarders in Sri Lanka, we actively engage with Government-appointed committees working to address these issues.
Q: How do you view the President’s directive for round-the-clock operations at Sri Lanka Customs? Will it be sufficient to address the backlog?
A: Continuous operations at Customs are fundamental, as they play a key role in border protection and trade facilitation. However, other government organisations, such as the Sri Lanka Standards Institution (SLSI), also need to operate 24/7, as many containers are subject to their inspections, which delay clearances further.
Q: Given the staff shortages at regulatory agencies such as the SLSI and the Department of Food Commissioner, how has this impacted your business? What measures should be prioritised?
A: Staff shortages have compounded the delays. If hiring additional staff will take time, the existing workforce must operate 24/7 until the backlog is cleared.
Q: How has the shortage of clerical staff been affecting operations at Port terminals? How is your company working with private service providers to ensure smooth operations?
A: The impact varies by company, but overall, it has slowed operations and increased inefficiencies.
Q: The Government has allocated land in Peliyagoda and Bloemendhal to ease the container congestion. Do you believe these measures will alleviate the bottlenecks?
A: While this is a good short-term initiative, stricter penalties are needed for those caught violating Customs regulations. This will reduce the need for detailed examinations that delay container releases.
Q: What are your thoughts on the plan to release two acres of storage land by January 31 and the remaining portion by February 28?
A: It’s a positive step, but, as mentioned earlier, addressing regulatory violations must be prioritised to see lasting improvement.
Q: How will the new regulation reduce the free storage period for containers at the Port to two days (and one day by June) impact your company’s operations and costs?
A: This will likely impact on importers. Processes involving letters of credit (LCs) at banks which can take longer than two days, making it impractical to clear containers within such a tight timeframe.
Q: Are there concerns that stricter regulations on food-related products might increase the burden on importers and shipping companies?
A: Yes, this is significant concern.
Q: The private sector has been asked to ensure clerical staff support the clearance process. How is your company managing this requirement, and how are you addressing absenteeism?
A: We are committed to meeting this requirement and have ensured that our members are aware of its importance.
Q: Do you agree with the call for disciplinary action against private sector staff who fail to meet expected standards?
A: Yes, provided the action is justifiable under the circumstances at the time.
Q: What long-term improvements are necessary to avoid similar backlogs in the future?
A: Key improvements include reducing the number of containers referred for detailed examinations by penalising offenders, investing in container scanning technology, increasing the number of Authorised Economic Operators (AEOs), and expediting the digitisation of Customs processes.
Q: What are your expectations regarding short-term, medium-term, and long-term plans for port sector development? How can the shipping industry contribute?
A: Short-term priorities include expanding infrastructure for less-than-container-load (LCL) handling and digitising Customs approvals. Long-term, initiatives such as the Port and Airport Community Systems and the National Single Window must be expedited.
Q: With mandatory certificates required for food-related imports, what challenges do you anticipate, and how do you plan to ensure compliance?
A: Regulatory agencies must adopt technology to issue certificates electronically. This will eliminate the need for physical submissions and streamline compliance.
Q: Given the current situation and expected changes by June 30, 2025, what is your outlook on the shipping and logistics industry in Sri Lanka over the next six months?
A: The industry must focus on clearing the backlog, improving regulatory processes, and embracing technology to enhance efficiency.
Pix: Sudath Nishantha
