Exporters urge for stability to safeguard trade

The recent actions taken by the Sri Lanka Customs Officers’ Union, including a two-day sick leave campaign and work-to-rule initiatives, have had profound implications across Sri Lanka’s business community, particularly affecting the exporters and importers, the National Chamber of Exporters (NCE) said. 
The actions were initiated due to the perceived grievances and unmet demands from the Customs Officers’ Union, on various issues. 
NCE President Jayantha Karunaratne shared that the work-to-rule approach has resulted in substantial delays in clearing the imported goods at the ports and checkpoints, causing disruptions in production schedules and logistical operations.
“These delays have particularly impacted the exporters, who face stringent deadlines to fulfil international orders, leading to strained relationships with overseas buyers and potential financial penalties for missed deliveries,” he said. 
The disruptions have also imposed additional costs on businesses. For instance, the importers have incurred demurrage charges, due to the extended delays in clearing the shipments, impacting the profitability and operational efficiency. For the exporters, the delays in handling perishable goods such as seafood and fresh produce have posed substantial challenges, sometimes resulting in significant financial losses and resource wastage from spoiled goods. 
The exporters cautioned that given that the exports are pivotal to Sri Lanka’s economy, disruptions to customs operations can have far-reaching impacts on economic growth, employment and overall national prosperity. 
Expressing serious concerns about the potential escalations, Karunaratne warned that prolonged strikes or the ongoing disruptions could further destabilise business confidence and investor sentiment. He urged swift and constructive dialogue between the Customs Officers’ Union and relevant authorities, to address the grievances and find mutually beneficial solutions.
“Restoring normalcy and reliability to customs operations, they emphasised, is imperative to support the resilience and growth of Sri Lanka’s export sector amid the challenging global economic conditions,” he said. 
As the local operative environment continues to be volatile, many exporters are contemplating relocating operations to countries offering more stable and predictable trade conditions, Karunaratne shared. 
“This potential exodus poses significant economic risks, including job losses, reduced export revenues and diminished investor confidence,” he said. 
Meanwhile, NCE Secretary General and CEO Shiham Marikar emphasised the importance of creating a supportive environment for the exporters, characterised by efficient customs processes, regulatory stability and supportive government policies. 
“Such an environment is crucial for retaining the existing exporters and attracting new investments, thereby fostering economic growth and enhancing competitiveness in global markets,” 
he said.