Apparel exporters warn against unregulated terminal handling charges

Saturday, 12 July 2025 01:16 - - {{hitsCtrl.values.hits}}

Sri Lanka Apparel Exporter’s Association Chairperson Rajitha Jayasuriya

The Sri Lanka Apparel Exporter’s Association (SLAEA) — representing the country’s largest industrial export sector and a major contributor to foreign exchange earnings yesterday expressed concern over recent attempts by certain intermediaries to re-introduce Terminal Handling Charges (THC) that are not reflected in the Sri Lanka Ports Authority’s officially approved tariff.

SLAEA Chairperson Rajitha Jayasuriya warns that such efforts threaten to reverse decades of progress in ensuring transparency and fairness in the logistics cost structure for importers and exporters.

The Association insists on the Government to uphold the regulatory stability restored by the existing legislative, cautioning that any attempts to reintroduce unauthorised charges could distort freight costs, hurt exporters and reverse Sri Lanka’s global gains in maritime logistics.

“The issue of unregulated fees has a long history, with the Fair-Trading Commission of Sri Lanka ruling in 1997 against arbitrary charges imposed by shipping agents, following strong opposition from the trading community,” she added.

After many years of sustained engagement between the private sector and policymakers, the Government issued Gazette No. 1842 in 2013, followed by Gazette No. 2041/10 in 2017, which required freight charges to be bundled into a single, all-inclusive amount. “These measures aimed to protect local businesses and ensure that only the contracting party with the service provider was liable for charges, bringing Sri Lanka in line with international standards,” she stated.

SLAEA Chairperson recalled that in 2022, a reversal of this policy occurred when the previous gazette notifications were cancelled, leading to renewed concern among the exporter and importer community. The matter was taken up legally, and the Supreme Court ruled that such changes must follow due legislative process, including a two-thirds majority in Parliament. Following this, former President Ranil Wickremesinghe acted to restore regulatory stability with the publication of Gazette No. 2334/26 on 31 May 2023, reinforcing bundled freight practices and protecting the interests of the trading community.

Contrary to early fears that tighter regulation would reduce port traffic, Jayasuriya pointed out that the Port of Colombo has improved its global ranking from 30th in 2014 to 22nd in 2024. “The port has also recorded steady growth in import, export, and trans-shipment volumes, solidifying its reputation as a leading maritime hub in South Asia,” she added.

Against this backdrop, the SLAEA urges the Government to safeguard the existing regulatory framework and not allow a few indirect service providers to disrupt the current stability for their own benefit. The apparel industry, having worked closely with international buyers under ICC INCO 2020 terms, remains firmly committed to ethical, transparent, and globally-aligned trading practices.

“The Association stands ready to continue its collaboration with relevant authorities to uphold a fair, competitive, and policy-consistent trade environment that supports both national economic goals and the interests of local businesses,” Jayasuriya affirmed.

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