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Lankan delegation to press for total war risk exemption

by Ravi Ladduwahetty

Minister of Port Development, Shipping, Eastern Development and Muslim Affairs Rauf Hakeem will shortly send a high powered delegation to the United Kingdom to negotiate with the London-based War Risk Ratings Committee (WRRC) for the total exemption of the war risk surcharge imposed on the Colombo Port.

The Sri Lankan delegation, which will comprise the Minister's nominee and representatives from the industry, will apprise the London based insurance authorities of the need to have the surcharge totally exempted in the wake of the LTTE calling a month's truce and also the absurdity of having a war risk surcharge on the Colombo Port, when in fact, the attack was on the Bandaranaike International Airport, 34 Km away.

Minister Hakeem has already directed the new Ministry Secretary Somapala Perera to contact the Sri Lankan High Commissioner in London Mangala Moonesinghe to press the case for Sri Lanka's benefit.

This follows Minister Hakeem's meeting with the shipping industry yesterday morning, where he asked the industry to send proposals to him so that he could submit them to the Sri Lankan High Commission in London.

The Minister has already told the meeting that the London based insurance authorities should also take into account the exemption of the surcharge till at least the LTTE truce becomes effective.

The Minister has already directed the Ceylon Association for Ship's Agents (CASA), the Shippers' Council and the Sri Lanka Association of Vessel Operators to submit individual reports to him so that he could submit a summary to the Sri Lankan High Commission, who in turn will take it up with the War Risk Rating Committee, whose majority of nominees is from Lloyd's of London.

The Shippers Council report to Minister Hakeem which was expected to be faxed last evening, will include the calamities to the local import/ export trade, job losses and other indirect impacts such as the closure of industrial establishments, Chairman of the Shippers' Council Rohan Masakorale told the Daily News last night.

Meanwhile, Vice Chairman of the Ceylon Association of Ship's Agents Parakrama Dissanayake said that his Association has made representations to the Minister that the London High Commission should intensify lobbying to get the 'held cover' status totally removed.

He also said that the Secretary to the Ministry of Ports should also meet Defence Secretary Austin Fernando with the intention of deciding what areas of the report of Trident Maritime could be implemented. Trident Maritime was nominated by Lloyds of London to conduct a security audit of the Colombo port following the War Risk Rating Committee decision to declare Colombo as a war zone. 

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