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War risk surcharge withdrawn

by Manjula Fernando

The Additional War Risk Surcharge imposed by Lloyds on vessels calling at Sri Lankan ports following the Terrorist attack on Bandaranaike International Airport in June last year has been withdrawn from yesterday.

The Sri Lankan mission in London has confirmed of their decision to the Port Development, Shipping, Eastern Development and Muslim Religious Affairs Ministry in a fax yesterday, official sources said.

The Lloyds will return the $ 50 million the Sri Lankan Government had deposited with them so as to share part of the risk and bring down a considerable proportion of the original surcharge on vessels.

It was announced earlier that the War Risk Rating Committee decided to withdraw the 'high war risk' rating on Sri Lanka by March 8 based on reports submitted by two security audit firms which carried out surveys in the Colombo and other local Ports in August 2001 and January this year. The Colombo Port, in particular, made several adjustments to tighten its security on the recommendation of these two internationally acclaimed audit firms, he said.

The decision was also taken in the light of a ceasefire agreement between the Government and the LTTE which in fact had a positive impact on revising this extreme rating on the country , sources said.

The Sri Lankan High Commissioner in London Mangala Munasinghe was constantly in dialogue with the Lloyds in a bid to get the 'surcharge' removed which paralysed our apparel sector and had very serious impacts on our import and export revenues in the past several months.

The Defence Ministry and the Ports Development, Shipping, Eastern Development and Muslim Religious Affairs Ministry had also been striving for the removal of this surcharge as soon as possible.

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