Statement by Business Chambers & Industry Associations on the extraordinary gazette notification 2303/24 act no. 10 of 1972

The Extraordinary Gazette Notification 2303/24 dated 20th October 2022
amended the Licensing of Shipping Agents, Freight Forwarders, Non-vessel Operating
Common Carriers and Container Operators Act No 10 of 1972.
The amendments include a change in the existing structure of charges with maximum delivery
order fees revised upwards for full container load and less than container load import
shipments. The ultimate import consignee will be charged USD 8 per cubic metre as cost
recovery fee with washing charges, de-stuffing charges and transport cost being included in the
cost recovery fee.
A collective of business chambers and associations including the Joint Apparel Association
Forum (JAAF), National Chamber of Exporters, Sri Lanka Association of Manufacturers and
Exporters of Rubber Products, Sri Lanka Shippers’ Council, Tea Exporters’ Association, Sugar
Importers’ Association and Essential Food Commodities Importers and Traders Association
have made a joint representation to the Minister of Ports, Shipping & Aviation Nimal Siripala De
Silva stating that these newly introduced provisions under the Extraordinary Gazette Notification
No 2304/24 violate the principles of market forces. This adversely impacts the cost of living and
competitiveness of industry overall in terms of both imports and exports.
The main concerns detailed in the letter to the Minister of these anti-competitive and non-
transparent regulations are:
1.) Increased costs due to intervention by the authorities in price fixing
2.) Removal of the negotiation capability of private parties as service providers and service
3.) Misinterpretation relating to freight and other costs
Given that industry is a major contributor to the country’s economy adding impetus to managing
the trade balance, the Chambers and Associations urge the government to consider justifiable
corrective action for the newly proposed amendments to Act no 10 of 1972, which would create
a regulatory environment where competition and principles of market forces are upheld.

Leave a Reply

Your email address will not be published. Required fields are marked *