What more can we do to become a hub?

Thursday, 12 July 2012 03:23 - - {{hitsCtrl.values.hits}}

Shippers Academy CEO Rohan Masakorala outlined that the basics to become a hub were policy, infrastructure, regulation and human capital.

Speaking on Day One of the conference, he said: “In 2010 the Government announced the five-hub policy. Development of seaports, railways and road has seen tremendous growth over the last three years. However there was and still is a missing link. The missing link is transparent and easy laws in place to carry out hub-related activities successfully.” Listing out key elements seen over the past five years, he acknowledged that the tax regime had been simplified along with international payments, which was done through an act passed in Parliament last October.

An Electronic Act was passed and Ports and Customs are now moving towards rapid automation. A Competition Act is in draft stage while the Merchant Shipping Act is being followed up on.

“By end this year, we will have an even greater regulatory environment where investors can come in with confidence,” he assured. Commenting on the Amended Finance Act No. 12 of 2012, better known as the Hub Act, he stated that this would give absolute freedom to operate in trading and logistics with minimum investment of US$ 3 million. “It will pave the way to realise the hub concept for Sri Lanka,” he added.

What more is needed? “The regulatory environment has been looked at over the past years and further reforms have been announced by the Government. They are also putting in place a proper regulatory process.” However, the country also needs an educated and skilled workforce with increased capacity to do more. “If business volumes increase we need to have high end productivity.”

He emphasised that the country needs further reforms. “We will then become marketable and sellable, if SLPA becomes competitive. The human capital side needs to be improved and we need to increase capacity in the country. With this the status of becoming a hub could be easily achieved within the next few years.”