Bleak future for logistics in Sri Lanka
Sri Lanka’s shipping industry requires liberalisation and reforms and this requires the support of the people without the constant interference by politicians wanting to secure their political future with jobs for voters. These were the concluding thoughts that highlighted the recurrent problems in the logistics sector that has made Sri Lanka unfavourable in the eyes of the world.
While some of the panellists at the Fireside Chat session of this week’s Colombo International Maritime and Logistics Conference noted that the reasons for the problems were a small group of shipping agencies others blamed politicians wanting to give jobs to voters; and even others highlighted that trade union activity was rampant that always held the Colombo port to ransom with threats of strike action if demands were not met.
National University of Singapore Associate Professor at Lee Kuan Yew School of Public Policy Razeen Sally said that since 2015 until 2018 he had not seen progress in the logistics sector and there were no serious reforms for which he blamed the President and Prime Minister of that day.
He noted that there was an attempt to liberalise these sectors but it was blocked and reversed by a small group of shipping agencies and “since then Sri Lanka has got worse.” “I see no hope and no future for Sri Lanka,” Mr. Sally said.
SJB MP Eran Wickramaratne speaking on the occasion said that there is a need to push for reforms and noted that people look at liberalisation and what went wrong and blame the politician.
But reforms need the support of the people, he said adding that the sector looks at the employees in this area but the real stakeholders are the citizens of this country.
He also noted however, that politicians were responsible for the increase in the workforce at the Colombo Port and insisted that governments should not have 100 per cent ownership of institutions. On the contrary they should engage in defence, food security and the like.
Moderator and Founder Chairman, CIMC Events and Shippers’ Academy International Rohan Masakorala highlighted that today investors say “We are not happy with Sri Lanka” and they have lost interest in the country insisting that the protectionist policies adopted are a hindrance. In light of these concerns, Mr. Masakorala queried “whom are we trying to protect?” adding that it was not protectionism that is required but liberalisation.
In fact most speakers pointed out that the utterance of Ports, Shipping and Aviation Minister Nimal Siripala De Silva left everyone confused compared to Foreign Affairs Minister Ali Sabry’s comments that caught the spirit of the event with calls for reforms and progress.
TW Corp Chairman Thilan Wijesinghe wrapped it up well when he said, “We are probably the only country that has done brilliantly well to go back 25 years.”
In fact he pointed out that retaining the East Container Terminal (ECT) is believed to be mainly to provide space for the Ministers to provide jobs to their supporters.
Expolanka Holdings Group CEO Hanif Yusoof said that since the current head of state is very much for liberalisation it is important that he takes the decision in this direction.
He also noted however, that politicians were responsible for the increase in the workforce at the Colombo Port and insisted that governments should not have 100 per cent ownership of institutions.