Sri Lanka losing biz, confidence post customs strike

Sri Lanka is losing orders and confidence among foreign buyers as the recent Customs union strike action at the Colombo Port had crippled import export operations.

The work to rule campaign initiated by the Customs Department for the past two weeks and the stoppage of work since last Friday at the Colombo Port by Customs officers has caused a serious loss of confidence in Sri Lanka by foreign buyers and loss of orders as well, Shippers' Council Chairman Sean van Dort told the Business Times.

One hour of work stoppage results in two to three days of delay in clearing containers at the Colombo Port, he explained.

It was pointed out that due to the trade union action it will take at least two weeks for import export operations to normalise.

Such industrial action by the Customs officers’ results in a domino effect causing an "unimaginable cost" to the importers and exporters, Mr. van Dort said.

He called for an increased sense of nationalism by the customs officers insisting that this department was capable of holding that government to ransom to meet their demands as they generate considerable revenue to the country.

He noted that when samples for future orders gets delayed in being sent to overseas buyers on time, Sri Lanka will lose confidence in its buyers and future orders to its competitors like Bangladesh.

The customs union carried out a strike action whereby only perishable and medical goods were cleared at the time and they were not engaged in overtime duty either.

"Customs has been a thorn in the flesh of importers and exporters," he said adding that "Customs is one of the biggest hindrances to maintaining a continuous flow of imports and exports, which is key to driving the economy forward."

The Customs unions have resumed operations at the Colombo Port but this is considered to be a temporary measure. The Customs union is biding time till March 31 until when the union is trying to resolve the issues at hand failing which they would resort to trade union action again.

Sri Lanka Ports Authority (SLPA) Chairman Keith Bernard told the Business Times that this industrial action mainly affects domestic importers and exporters and not the transshipment volumes.