CASA Chief calls for safeguarding of “Sri Lankan Interest”

The 49th Annual General Meeting of CASA was held recently. At the event, Capt. Ajith Peiris was appointed as the Chairman of CASA for the second year, on his second tenure. Following are excerpts from his speech: 

From left: CASA Treasurer Iqram Cuttilan, CASA Vice Chairman Ruwan Waidyaratne, CASA Chairman Capt. Ajith Peiris, CASA Secretary General Dhammika Walgampaya 

On behalf of the office bearers and the executive committee it is my great pleasure to welcome you all for this function celebrating the 49th Annual General Meeting of CASA. Today we have Arjuna Ranatunga the Minister of Ports and Shipping as our Chief Guest. He needs no special introduction as he is a legend in the sports arena and a senior politician with a reputation of doing clean politics and having firm beliefs. We thank him for gracing this occasion in the middle of his hectic election campaign. 

We also have with us today the Secretary to the  Ministry of Ports and Shipping, Jayampathi, DG of Customs Serasinghe, DG Shipping Ajith Senevirathne, Chairman SLPA Dr. Lakdas Panagoda, VC Capt Asitha Wejesekara, Chairman CSC, MD CDL, Heads of container terminals SAGT and CICT, Heads of various associations connected to shipping. 

I would like to warmly welcome all these special guests and the invitees and thank them for their presence on this occasion in spite of their busy schedules. 

Today I assumed duties as the Chairman of CASA for the second year on my second tenure, the first one being from year 2006 to 2009. 

One of the challenges I had to take on, as soon as I took over the Chairmanship of CASA last year, was to re-establish a dialogue between the shipping industry representatives and the Government officials who are responsible for drafting and amending policies and regulations for the shipping industry. 

With a small team of industry leaders, we managed to secure that dialogue as early as September 2014. One major achievement of ours due to this was reversing of the regulations to limit foreign equity only to 40% in the freight forwarding business. We were also assured that the same will be the case in the shipping agency business too. We rejoice in this achievement. 

Another major regulation brought in to effect in the shipping industry without a proper dialogue between the authorities and the stake holders in the shipping industry, was the removal of the THC from the SL Imports and Exports. Certain segment of the shippers had been pressuring the Government to remove the THC for a long time and in the year 2006 they went to the Supreme Court to get a directive to stop shipping lines collecting THC in Sri Lanka. 

The Supreme Court directed the DG shipping to form a ‘mediation committee’ comprising of the Chairman of the Shippers Council and the Chairman of CASA (representing all shipping lines calling ports of SL) and the DG Shipping. 

The discussions went on for a few months and finally the Chairman of Shippers Council on behalf of his council, accepted that THC is to remain and requested the Shipping Lines to streamline the ancillary charges levied. A document was signed to this effect by all three parties in the mediation committee and was lodged at the Supreme Court. Since then up to early last year, there was no agitation from any parties re – THC until it emerged as a regulation preventing shipping lines from charging THC in SL. 

I am very pleased and happy to announce that Minister Arjuna Ranatunga after assuming duties as the Minister of Ports and Shipping, appointed a maritime Advisory Board comprising of seniors from CASA, CSC and the Ministry, to advise him on matters of importance in the maritime sector. 

Another challenge I was faced with was to initiate a dialogue with all stakeholders together in the shipping industry collectively. There was a major issue with regard to quantum of the D.O. fee. It came to a point at one stage the authorities were threatening to abolish the D.O. fee. 

For the first time in the history all the stake holders met at one forum without the presence of any authorities, discussed the issue and came to an amicable solution. This was another achievement in the shipping industry. I strongly believe that any issue can be discussed or debated but finally we should compromise for the mutually beneficial solution. 

At CASA we do encourage such practices, i.e. to respect the ideas of others, understand the problems that others have and work as a team for the benefit of our country, industry and for our members. 

Another matter I would like to mention today is that occasionally we see in the newspapers and in other published articles, that ‘Shipping in Sri Lanka is not liberalised’. It is completely a wrong and a misleading statement, since any shipping line in the world could call at any port in Sri Lanka without any restrictions. We have even liberalised the shipping agency industry up to 40% for foreign principals. 

One or two ‘pandits’ may compare shipping in Sri Lanka with other countries but I think each country has its own characteristics and cannot be compared. At the same time I believe we should not open out any of our industries without controls. For some, the word ‘control’ or ‘protect’ is very prohibitive and claims it does not reflect the modern day business. But I remember the days Sri Lanka opened up tourism and we ended up having some undesirable situations which was completely against our culture. 

Not so long ago Sri Lanka opened out immigration laws and we ended up attracting many who came here to do various unethical businesses. All developed countries  have their own policies such as ‘Border Controls’, Credit Controls, Employment Controls etc., so we must not get carried away by some theoreticians ideas  but must work toward encouraging business friendly policies that safe guard Sri Lankan interest.

CASA takes this opportunity to acknowledge the support of SLPA management and the terminal operators SAGT and CICT. We have commenced direct dialogue with all these parties and our wish is to see that these terminals work hand in hand in order to develop our port Colombo. In this regard we assure our (CASA) fullest support to SLPA, SAGT and CICT. 

We acknowledge SL Customs especially the DGC (past and present) and their senior teams, for the support rendered always, by giving us the time to discuss many issues relating to operations of our members. 

The role played by the DG shipping is so vital and important to the entire shipping industry. We have a new proposal to enhance the professionalism among the stake holders in the shipping industry which will be submitted to DG Shipping in the near future. 

We also acknowledge the presence and support of all other trade Associations – CCC, SLAFFA, CEYFFA, ACTDO, WISTA, YSP etc., 

Our thanks to our education partner CINEC for their unstinted support for the last 15 years and over.

Before I wind up my speech I would like to thank the CASA Advisory Council past office bearers, executive committee, YSP and the staff of CASA secretariat headed by the Secretary General for a job well done in the last year. 

I once again, thank the Chief Guest AR, and all other special invitees for gracing this occasion, and wish all of you an enjoyable evening.