Unveiling Sri Lanka’s logistics landscape: Achievements, challenges, and digital transformation

Logicare CEO Saminda Deshapriya

Operations Head Kashun Abeywardane

National Logistics Day is a valuable opportunity to promote the logistics sector in Sri Lanka and to raise awareness of its importance to the economy. It is also a chance to celebrate the sector’s achievements and look to the future optimistically. Sri Lanka has ambitious plans to develop the country’s logistics sector and position Sri Lanka as a global logistics hub. Therefore, it is essential to understand the current performance of the Sri Lankan logistics industry.

The Logistics Performance Index (LPI) is a report published by the World Bank that measures the efficiency of a country’s logistics system. The LPI is based on a survey of businesses and experts in each country, and it covers six areas of logistics performance: efficiency of customs clearance, infrastructure, timeliness of shipments, and ease of arranging shipments, quality of logistics services and tracking and tracing of consignments.

According to the LPI index for 2023, Sri Lanka ranks 73rd out of 138 countries with a score of 2.8, improving from 94th (2.6) in 2020. Singapore tops the table with a score of 4.3, while UAE ranks 12th (4.0) and India ranks 38th (3.4).

Logicare ltd. functions as a comprehensive logistics solutions provider, delivering specialised services tailored to the distinct needs of its clients. Backed by state-of-the-art infrastructure, modern equipment, advanced technology, and a team of industry experts, Logicare is a premier one-stop destination for diverse logistics services catering to various industry verticals. Employing technology-centric approaches, Logicare empowers clients to amplify customer value and secure a competitive edge in the ever-evolving market. The company embraces agility, creativity, simplicity, and integrity as core principles, streamlining business operations for clients and fortifying the resilience of its supply chain networks. Since its inception in 2019, Logicare has managed to partner with some of the leading companies in Sri Lanka as well as top MNCs as their strategic logistics solutions provider covering various industry verticals such as FMCG, apparel, stationery, pharmaceutical, industrial, white goods, pay TV and e-commerce.

Elaborating further, Logicare Operations Head Kashun Abeywardane said: “Sri Lanka has made significant improvements in recent years in terms of logistics performance, but it still has a long way to go to reach the level of the top-performing countries. Infrastructure, digitalisation, and trade facilitation would be the key areas to improve logistics performance.”

According to the Annual Third-Party Logistics Study 2030, manufacturers would continue to outsource critical logistics processes such as domestic and international transportation, warehousing, freight forwarding and customs brokerage. The true advantage of logistics outsourcing extends beyond mere cost reduction; it catalyses long-term value creation. While outsourcing frees organisational resources for core activities, its potential lies in fostering transformative change within businesses and industries. This approach necessitates viewing outsourcing from a broader perspective, focusing on enterprise-level outcomes that enhance ROI and shareholder returns.

Logicare CEO Saminda Deshapriya said: “Logistics outsourcing should prioritise broader results, such as market repositioning and redefining customer value propositions, rather than solely pursuing minor cost savings. Outsourcing’s real power lies in its capacity to drive strategic value, induce business transformation, and reshape industry landscapes.”

Digital transformation is the process of developing organisational and technology-based capabilities that allow a company to continuously improve its customer experience, lower its unit costs, and, over time, sustain a competitive advantage. Historically, logistics companies, known for low-margin operations, faced constraints in pursuing digital advancements. However, the changes in consumer behaviour, increased supply chain complexity, physical disruptions of the pandemic, and recent geopolitical changes have pushed these players to prioritise and expedite their digital transformation efforts swiftly. 

Explaining the status of the digital transformation at Logicare, Saminda added: “We are committed to digital transformation at Logicare. Technology is the key to improving efficiency, productivity, and customer service. Technologies such as Blockchain, AI, Machine Learning, IoT, Big Data, Automated Guided Vehicles (AGVs) and Robotics will continue to disrupt the logistics industry in the future. We will continue to invest heavily in advanced technologies. These technologies are helping us to automate our processes, make better decisions, and provide a better experience for our customers. We are confident that our digital transformation will help us to stay ahead of the competition while providing real-time control to our customers in managing their supply chains.

“ Expressing his sentiments on National Logistics Day 2023, he further stated: “On this special day, we recognise and appreciate the everyday heroes who help move the world forward, and at Logicare, we extend our gratitude to all the logisticians across the country who kept the supply chains up and running during the most challenging times.”