Private sector opposes port tariff hike

• Says consultative process with private sector on the matter was a failure 
• Excess tariff already paid before it that was put on hold yet to be refunded 

Sri Lanka’s private sector has expressed strong opposition to the controversial tariff hike proposed by the Sri Lanka Ports Authority (SLPA).

Premier private sector business chamber, the Ceylon Chamber of Commerce along with several other shipping and export sector industry bodies and chambers in a brief statement said the Joint Consultative Committee (JCC) appointed by the Ports, Shipping and Southern Development Ministry on the matter couldn’t reach consensus. 

SLPA officials and a member each from the Ceylon Association of Shipping Agents (CASA), the Chamber of Exporters, Import Section of the Ceylon Chamber of Commerce, Sri Lanka Logistics and Freight Forward Association (SLAFFA), Joint Apparel Associations Forum (JAAF), Association of Clearing and Forwarding Agent (ACFA) and the National Chamber of Commerce were in the JCC. 

“The concerns raised by the private sector at the JCC and through written proposals have not been adequately addressed and thereby rendered the envisaged consultative process a failure,” the statement said.   

The opposition to the tariff hike is based on several reasons. Among them are the present difficult operating environment the shipping and export industries are facing, the need to address existing inefficiencies in port operations to make Sri Lanka more competitive and the disruption to existing contracts. 

“The private sector representatives of the JCC are also disappointed to note that the assurances given by the SLPA to refund the excess tariffs already paid (when the hike was brought into effect from January 1st, 2019 to February 7, 2019) have not been implemented. 

We urge that the proposed tariff hike be stayed, permitting the private-public consultation process through the JCC to arrive at a suitable solution,” the statement said.  

In a recent statement, Sri Lanka’s Export Development Board also warned that the proposed tariff hike could hamper the country’s export targets and the current export growth momentum, while potentially jeopardizing the implementation of the key export strategies such as the National Export Strategy, which are vital in transforming the country’s economy to an export-driven economy.