Ports and shipping sector experts were disappointed over the non-inclusion of a new Customs Act in the annexure among other Acts to be introduced this year despite a reference made to it by President Anura Kumara Dissanayake in his Budget speech.
At a post Budget forum organised by the Institute of Certified Management Accountants in Colombo last week, Founder Shippers Academy International, Rohan Masakorala said that there had been many plans to develop the ports and shipping sector in the past but they were not implemented mainly due to bad governance and politics.
“The outdated Customs Act is the elephant in the room to promote trade facilitation and boost revenue through the ports and shipping sector. I was happy to hear about a new Customs Act to be introduced in the Budget speech but when going into detail of the annexure there was no such Act included for 2025 among the 11 Acts proposed to be tabled in Parliament. This was disappointing,” he said.
Masakorala further said the Government must stop focusing only on the location slogan and look outwards to understand what is happening in the competitive trade world. He said shipping, logistics and investments will not develop under protectionist policies, “We need to liberalise key investment sectors of the economy such as logistics and ports to promote and make good use of our strategic location among key shipping routes in the region”.
“There was no mention of liberalisation of the ports and shipping sector in the Budget. Besides, the country is full of outdated laws such as the age-old labour laws and commercial dispute settlement procedures. These laws and mechanisms must be of world standard to boost business and investor- confidence,” Masakorala said.
Transshipment container volumes handled by the Port of Colombo in January declined due to persistent congestion compared to the corresponding period last year. Transshipment volumes declined by 6.5 percent year-on-year (YoY) to 525,768 TEUs in January 2025.
Referring to export revenue targets for this year, he said that export targets should be realistic and achieved through effective execution. Putting out numbers as in the past is not sufficient. “Economic growth is linked to reforms in key sectors,” he said.
