To derive benefits from growth momentum:

Effective logistics system vital

Sanjeevi Jayasuriya

Sri Lanka needs an effective national logistics system to derive the benefits from the growth momentum created by the peaceful environment. The year 2010 will be a challenging year for the industries particularly for the shipping industry as the international business community is looking forward to the country as a phase of development, National Chamber of Sri Lanka Shipping, Ports and Aviation Committee Chairman Sujeiva Samaraweera told Daily News Business.

Sujeiva Samaraweera

The country’s shipping industry is well poised to attract more shipping lines and volumes and is geared to provide an efficient service.

The opening of the Northern entrance to the Colombo Port is an added advantage as the country’s level of performance could be enhanced.

The war risk premium would not be a necessity in Sri Lanka any more. The world’s recession is slowing down and improvement in the global trade could be anticipated during the year, he said.

The international business community views the country as a strategic location and we need to encourage more and more shipping lines to call at the Colombo Port. There would be higher growth in the shipping industry with the construction of the Hambantota Port and related development activities, he said.

There are indications by major airlines to resume flights to Sri Lanka and also a few budget airlines have expressed willingness to operate flights. The country also needs more charter carriers. The increased facility for air transportation is a boost to tourism as the Government expects a huge growth in the industry. It will be a decisive year for the shipping, ports and aviation industries, Samaraweera said.

The logistics industry would thrive with growth opportunities. With plans under way to make a fully-fledged free trade zone in Jaffna, there will be a growing demand for logistic operations.

The prospects are bright for the logistics industry. It is timely that Sri Lanka Customs will become 100 percent automated next year and the National Chamber of Commerce of Sri Lanka appreciates the efforts taken to provide an efficient service, he said.

New market opportunities have been created in the North and the East with over 90 percent of the re-settlement process completed. There are pressing needs in these provinces that should be fulfilled which would be an impetus for industrial and economic growth in the region, he said.