COLOMBO, 4 November 2026 — Sri Lanka could be losing more than US$50 million annually in foreign exchange because of regulations governing shipping and logistics payments at Colombo Port, according to an industry association calling for the immediate review of the existing framework.
The Ceylon Freight and Logistics Association (CEYFFA) alleges that current arrangements place an unnecessary burden on the country’s foreign exchange resources by requiring certain payments connected to port operations to be settled in foreign currency.
Speaking at a recent media conference in Colombo, association General Secretary Inam Caffoor estimated the annual foreign exchange impact at more than US$50 million.
The figure is the association’s estimate and has not been independently established through publicly available transaction data or an official government assessment.
Caffoor argued that payments for services provided within Sri Lanka should comply with the country’s foreign exchange regulations and, where required, be settled in Sri Lankan rupees.
His remarks come as Sri Lanka continues efforts to strengthen its external reserves, maintain foreign exchange liquidity and improve the competitiveness of its international trade sector.
Association Seeks Withdrawal of Shipping Regulations
The association has called for the withdrawal of Gazette Extraordinary No. 2334/26, issued on 31 May 2023, which governs the structure of charges imposed by licensed shipping agents, freight forwarders, non-vessel operating common carriers and container operators.
Issued under the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No. 10 of 1972, the regulations establish an all-inclusive freight charging framework.
They require specified container transport charges to be incorporated into the agreed freight amount and restrict additional charges levied on importers and exporters.
The Gazette also provides that a permitted delivery order fee charged to an importer must be paid in Sri Lankan rupees.
CEYFFA maintains that the broader regulatory arrangements have created commercial distortions and increased the foreign exchange burden associated with shipping and logistics activities.
Caffoor accused the present administration of failing to take the necessary steps to address the association’s concerns, including progressing proposed regulatory changes through the Cabinet and Parliament.
He said the association had previously pursued legal action over provisions it considers unjust.
Exporters Defend Existing Freight Protections
The proposed withdrawal is contentious within the shipping industry.
In October, the National Chamber of Exporters of Sri Lanka urged the Government to retain the existing all-inclusive freight framework, warning that removing its protections could allow separate terminal handling charges to be imposed on importers and exporters.
The chamber argued that the framework helps prevent additional charges from being levied outside negotiated freight agreements, thereby protecting businesses and consumers from higher shipping costs.
The competing positions highlight a regulatory dispute involving freight pricing, payment arrangements and the allocation of costs among shipping companies, logistics providers and cargo owners.
A review would therefore need to distinguish between payments made domestically and legitimate foreign currency obligations arising from international shipping operations.
The Central Bank of Sri Lanka clarified in February 2026 that transactions between residents must generally be conducted in Sri Lankan rupees unless otherwise authorised under the applicable legal framework.
Whether specific port-related transactions fall within an authorised exception would require examination of the parties, services and payment arrangements involved.
Association Appeals to President
Caffoor said CEYFFA had formally written to President Anura Kumara Dissanayake seeking intervention and explaining its objections to the existing regulations.
He expressed disappointment that the association had not been granted an opportunity to discuss its concerns directly with the President.
Beyond the claimed foreign exchange impact, the association argues that the payment system contributes to higher costs for businesses operating through Colombo Port.
Shipping and logistics charges can ultimately affect import prices and exporters’ operating expenses, potentially weakening competitiveness in international markets.
For Sri Lanka, which is seeking to strengthen Colombo’s position as a regional maritime and logistics hub, the outcome of the regulatory dispute could have implications for freight pricing and commercial confidence.
The association is seeking a government review of the regulations and corrective action to prevent what it considers unnecessary foreign exchange outflows.
The immediate questions are whether the Government will independently examine CEYFFA’s US$50 million estimate and how it will reconcile the association’s proposals with exporters’ calls to retain the existing freight-pricing protections.
