Global shipping is going paperless—Sri Lanka risks being left behind on electronic Bill of Lading

Although electronic Bills of Lading (eBL) may sound like a logistic matter, inefficient paper-based trade processes ultimately raise the cost of imports and exports, delay essential goods, and add to the cost of living. For an island economy that depends heavily on maritime trade and aspires to be a transhipment hub, modernising trade documentation is directly linked to price stability, export competitiveness, and economic resilience. In this regard, eBL adoption is not just a logistics reform, but a public-interest issue that affects consumers, jobs, and the economy

In global shipping, the Bill of Lading (BL) is one of the most critical documents. It serves as a receipt for goods, evidence of a contract of carriage, and, most importantly, a document of title. While much of international trade documentation has become digital, BLs remain mostly paper-based.

Although electronic Bills of Lading (eBL) may sound like a logistic matter, inefficient paper-based trade processes ultimately raise the cost of imports and exports, delay essential goods, and add to the cost of living. For an island economy that depends heavily on maritime trade and aspires to be a transhipment hub, modernising trade documentation is directly linked to price stability, export competitiveness, and economic resilience. In this regard, eBL adoption is not just a logistics reform, but a public-interest issue that affects consumers, jobs, and the economy.

What makes an eBL different from a scanned or PDF document?

An eBL is not merely a scanned BL or an emailed PDF. It is the digital version of the BL designed to replicate the BL’s legal and commercial functions, particularly the title/ownership transfer, while moving the issuance, transfer, and surrender into a secure digital platform. 

Different eBL platforms use different technological approaches—some rely on centralised registries, while others use distributed ledger or blockchain-based systems. But they share the same goal: that is, functional equivalence to paper BL, but with more advanced features and benefits, including faster, safer, cost-effective and real-time transactions. Examples of eBL platforms used globally include WaveBL, CargoX, and essDOCS.

A global shift toward digital trade documentation

The push for eBLs is happening globally. The Digital Container Shipping Association, which represents a large share of container shipping, has announced an industry transition toward fully standardised eBLs by 2030. In bulk shipping, the “25 by 25” campaign by the Baltic and International Maritime Council seeks to accelerate near-term uptake—e.g., committing major shippers to use eBLs for at least 25% of annual seaborne volume for a commodity by 2025. 

Also, there are efforts to modernise trade law through frameworks like the UNCITRAL Model Law on Electronic Transferable Records (MLETR), which provides legal principles for recognising electronic transferable documents—including eBLs—as equivalent to paper originals. Countries implementing or considering MLETR-style reforms include Singapore, the UK, the UAE and others seeking legal certainty for cross-border digital trade.

Despite these commitments, global eBL adoption remains low, though it is gradually increasing. A few countries in the Asia-Pacific region—such as China, Singapore, the UAE, India, and Bahrain— have made measurable, significant regulatory and implementation progress.

These international developments matter to Sri Lanka. They are not just distant benchmarks; they will shape shipping line behaviour and practices, customer expectations, and provide frameworks that Sri Lanka can adapt to accelerate domestic adoption.

Sri Lanka: early exposure but limited adoption

Although eBLs have begun to make initial inroads into Sri Lanka’s shipping sector, adoption remains limited, fragmented, and often driven by external actors rather than local demand. The experience of freight forwarders operating in Sri Lanka—ranging from small, locally owned firms to regional and global providers—shows a consistent pattern: eBL platforms, such as WaveBL, are technically viable and offer clear operational benefits, but the wider trade ecosystem is not yet ready to support large-scale use.

In many cases, eBL initiative arises because a global headquarters, a long-standing overseas agent, or a shipping line is piloting a digital initiative. Currently, local exporters, importers, banks, and regulators do not request or accept eBLs. Sometimes, Sri Lankan exporters or importers are unaware that an eBL was used at all by their freight forwarder for their shipments, as it resembles familiar electronic substitutes, such as scanned telex releases or Sea Waybills.

A system: partly digital but still paper-dependent

Sri Lanka’s freight forwarders, who are currently transitioning to eBL adoption, did not start from a purely paper environment. Long before eBLs were introduced to Sri Lanka, most operated within a hybrid electronic system. Draft bills of lading, amendments, shipping instructions, and release confirmations were routinely exchanged via email or carrier portals. Sea Waybills—non-negotiable documents that avoid title transfer—were widely used for trusted customers, while original paper BLs were typically confined to shipments involving Letters of Credit (LCs) or specific destination requirements.

However, many other critical trade documents remained paper-based. Banks continue to demand original paper BLs for LC compliance. Certain certificates require physical issuance by buyers or regulatory authorities abroad. Sri Lanka Customs, at times, requires printed documentation for clearance. As a result, even when eBLs were introduced, freight forwarders were forced to maintain parallel paper workflows, limiting the overall efficiency gains of eBL usage.

Benefits are real but concentrated in narrow use

Even within this limited use, eBLs have delivered tangible benefits. The few freight forwarders who have implemented eBLs in Sri Lanka report meaningful benefits, including:

• Time savings: near real-time issuance and transfer of BLs, reducing document turnaround from days to minutes.
• Direct cost savings: reduced printing, couriering, re-issuance, and storage costs; previously, courier fees, which range from USD 25 to 80 per shipment, could add up quickly on frequent shipments.
• Lower risk of lost documents: digital transfer reduces situations where cargo arrives before paper BL documents, which would result in expensive bank guarantees or workarounds.
• Better traceability and fewer errors: digitalisation has improved audit trails and reduced manual data entry.

Why have eBLs not scaled in Sri Lanka?

Despite these benefits, systemic barriers prevent eBLs from moving beyond pilot runs.

The most significant constraint is banking integration. No Sri Lankan bank currently accepts eBLs for LC-transactions. Since LC-based trade accounts for a large share of higher-value and risk-sensitive shipments, this effectively excludes eBLs from mainstream trade.

Customs procedures pose another obstacle: eBLs are not yet recognised as legally equivalent to paper originals for clearance purposes, nor can the Customs system interface with eBL platforms for clearing purposes. Simultaneously, other trade documents remain paper-based. As long as printed documents are required at the border, freight forwarders must maintain hybrid workflows, reducing the efficiency of eBLs.

Network effects further constrain uptake. Only a limited number of shipping lines (2) support eBLs in Sri Lanka, and a few local freight forwarders (approximately 10) are actively using eBL platforms. This situation leads to a vicious circle: adoption remains limited because participation is low, and participation stays low because adoption has yet to reach a critical mass.

Cost structures also matter. For smaller freight forwarders, platform fees (USD 15 per BL) and foreign remittance charges for eBL transactions can exceed courier costs, making the digital option more expensive than paper BLs. Partial integration—where some steps are digital but others remain manual—further erodes the efficiency of the eBLs. Also, limited awareness and a generally cautious attitude toward digital solutions among many exporters and importers weakens domestic demand for eBLs.

Way forward for Sri Lanka

For Sri Lanka, the path to eBL adoption requires coordinated action and incremental reforms.

First, scale up what is easiest: digitise simpler shipping documents like non-negotiable BLs that do not involve ownership transfer or bank financing. Second, banks must be integrated into recognised eBL platforms, enabling at least pilot use under LCs. Third, Customs procedures must evolve to accept digital negotiable BL documents, reducing the need for parallel paper submission. Finally, costs and on-boarding barriers for SMEs must be addressed to ensure that digital trade does not become the preserve of large firms alone.

Bottom line

Electronic Bills of Lading are technically viable and already delivering benefits in Sri Lanka—but only at the margins. Their limited uptake is not a technology problem; it is an ecosystem problem. Without coordinated efforts across banking, Customs, legal frameworks, and industry participation, eBLs will remain confined to small-scale and low-risk shipments.

If Sri Lanka treats eBL adoption as a trade facilitation priority along with the National Single Window for trade initiative, the country can move from isolated experiments to genuine digital transformation. With global commitments accelerating and other countries moving ahead, Sri Lanka has a strategic choice: remain stuck with costly hybrid systems, or digitalise the eBL process—so that eBLs become a tool that supports faster trade, lower costs, and improves the resilience of the entire economy.

(Janaka Wijayasiri, PhD and Pubudinie Wickramasekara are international trade and policy specialists. For further information, they can be contacted at: [email protected] and [email protected])