The congestion at the Colombo Port has been the talk of the town for the last month, with multiple efforts made by the Government to clear up the backlog and bring cargo clearance operations back to a steady flow. The infrastructure shortcomings of the Colombo Port and the need to upgrade have long been known and are being addressed. 

However, many observers have opined that while there has been an increase of ship traffic over the last six months, one of the key reasons behind the current back-log is the long-standing culture of impunity within the Customs Department. The congestion, which began nearly months ago, has gradually eased with the release of several hundred containers from the Port. Some economists have opined that the Port congestion crisis impacts daily on the State revenue raising by an estimated Rs. 3-4 billion.

Some observers have pointed out that part of the back-log is a ‘man-made crisis’ and have implied that the Customs Department as a community is using a ‘go slow and work to rule’ approach to put pressure on the Government to prevent structural changes being made to improve the efficacy and transparency of the law enforcement agency. The Customs Department also has judicial powers and is a ‘uniformed’ force. Why are they allowed to form and behave according to the whims of a ‘trade union’? We do not see the Police, Coast Guard, Civil Security Department, nor the Armed Forces of Sri Lanka, allowed to maintain or be part of a trade union. Why are Customs given this space and opportunity to hold the State to ransom to gain their demands? Let us not forget that the Customs is an invaluable part of the broader National Security framework of Sri Lanka, and must not be allowed to be compromised or made vulnerable to internal or external influence.  

The fact that the Customs Department has long resisted State-sector reforms by utilising their powerful trade union, is a well-known fact. The tantrums the Customs Department made when it was proposed that CCTV cameras and thumbprint-biometric attendance and access control was to be introduced was a clear indication the ‘self-serving’ powerful interest pushed by their trade union was against the ‘national interest’ of Sri Lanka. However, it must be clearly stated that the rotten apples in the Customs barrel are a minority, and that a majority of the officers who work diligently within are not in cahoots with the few who are corrupt. It seems the corrupt clan of Customs officers are today trying their old tactics to eject the new Director-General who has been appointed by the new Government to clean house. Given the anti-corruption mandate which this Government has stood on, now would be a good time to put the Customs Department, and similar enforcement agencies such as the Department of Immigration and Emigration in order.  

In light of the ongoing challenges faced at the Colombo Port, Sri Lanka’s Joint Chambers, along with key trade, maritime, and logistics associations, have proposed several short-term and medium-term solutions to mitigate the impact of port congestion on the nation’s economy.

Meanwhile, Sri Lanka’s Joint Chambers and associations propose solutions for port congestion issuing a joint statement yesterday (30). They emphasised that exporters are facing potential delays with imported inputs, missed shipping opportunities, and increased processing costs, undermining their competitiveness in the global markets and foreign buyer confidence in Sri Lanka. “Reports indicate that ships are bypassing Colombo for more efficient neighbouring ports which would be a permanent shift, resulting in lost container volumes for the Colombo Port and rising freight rates, along with additional costs for freight forwarders and shipping lines. Importers, transporters, and all other stakeholders are also losing business opportunities due to these delays, contributing to higher prices for essential goods and an increased cost of living for the people of Sri Lanka,” the statement warned. The collective also pointed out that the manufacturing sector is struggling with material delays and finally this overall situation threatens Colombo’s status as a transshipment hub and poses serious risks to the overall economy.

The Joint Chambers and associations recommend the Government urgently take up to meet the pressing concerns affecting port operations, trade efficiency, and economic growth. These include a number of short-term and medium-to-long term recommendations.

While it is important for the Government to listen to and work with the industry and private sector stakeholders for problem solving and growth, it should not take the ‘foot off the gas’ on reforming the Customs Department. The organisational culture and structure of the Customs must be changed to ensure national interests are protected, not kick-backs and pay-offs which leaves national coffers empty and the country vulnerable to exploitation.