ANNUAL REPORT ACCOUNTS - Shipper's Council
Transcript of ANNUAL REPORT ACCOUNTS - Shipper's Council
46th Annual General Meeting
ANNUAL REPORT
&
ACCOUNTS
2015/2016
SLSC Annual Report 2015/2016 Page 2
SRI LANKA SHIPPERS’ COUNCIL
The Sri Lanka Shippers’ Council is the apex body representing Sri Lankan
Shippers, which was established in March 1966 to protect and promote the
interests of shippers. It was the first National Shippers’ Council to be set up in
Asia and was formed on a request made in 1965 by the local Committee of the
Ceylon/Continental Conference, and a subsequent request made by the
Director of Commerce in January 1966, to the Ceylon Chamber of Commerce.
The Council is also a founder member of the Association of Shippers’ Councils
of Bangladesh, India, Pakistan and Sri Lanka (ASCOBIPS), founded in 1981 and
the Asian Shippers’ Council, founded in 2004.
Membership of the Council consists of Chambers of Commerce, Trade
Associations & individual organisations. The Managing Committee of the
Council only consists of PA’s with voting rights. Currently, the Council
represents a large percentage of the import/export trade in the country
through its broad based representation and membership of these trade
Associations and individual Companies.
The Council has now opened its doors to individual companies as Associate
Members so that companies in the import/export trade could have access to
the Council’s resources and expertise to resolve their shipping related
problems.
The Sri Lanka Shippers’ Council is headed by an elected Chairman and
assisted by two Vice-Chairmen who are also elected by the constituent
members.
The Ceylon Chamber of Commerce provides secretarial services to the Council
and also acts as the Secretariat.
The Council actively supports the Sri Lankan Government’s vision of making
Sri Lanka the Logistics Center in the Asian region, which would result in the
generation of enhanced economic activity, employment and wealth. As such
all Council activities have been planned and prepared to support this vision
and to facilitate International trade.
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OUR VISION
“To enhance the competitiveness of our members by abolishing hidden logistics costs.”
OUR MISSION
We facilitate our customers to be more competitive in their Business Logistics; performance and cost, by the following;
1. Being the APEX Body, protect the interest of our customers and being a strong Advocate to the Government.
2. Ensuring cost effective strategies are developed and implemented in the logistics and value chain to make our members more competitive.
3. Facilitating greater efficiencies in logistics by reducing logistics barriers and simplifying trade.
4. Acting as the mediator in resolving conflicts amongst our customers (members).
5. Facilitating a level playing field by developing and promoting a code of conduct / ethics for our customers (members).
6. Establishing a centre for excellence for information sharing and to upgrade competencies of members to compete globally.
7. Leveraging regional and global partnerships and facilitating global best practices in logistics in Sri Lanka.
It is the Council’s firm belief that in order to be competitive with the international market Sri Lankan shippers should;
a) Have a clear understanding when deciding on Carriers /Freight rates and be clear and free of any ambiguity with regard to the Freight rates and matters prevailing in the Market.
b) Have freight and associated costs stabled, particularly for traditional exports
such as tea, rubber, coconut products, which account for at least 70% of total export volume out of Sri Lanka. A major part of the turnover of these exports in foreign exchange is retained in the country and it is vital to protect these industries from international competition. Furthermore, these commodities are with relatively low margins and usually with forward trading patterns cannot absorb constant and continuous cost escalations.
c) Concurrently are the major exports such as garments are usually traded on
FOB terms and the local manufacturers are constantly under pressure to provide low priced services, thus are unable to absorb any additional charges keeping in mind that almost all material for these industries are being imported. Therefore the constant increases in charges could seriously affect
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such industries as they are called upon to pay these charges both at the point of import of raw materials and export of finished products.
d) Have reasonable Service providers who would not take undue advantage
from their captive customers.
OUR OBJECTIVES AND KEY BENEFITS TO MEMBERS
1. To provide for consultation/dialogue between shippers and Ship-owners/
Conference Lines/Shipping Agents/Airlines/Airline Agents, Sri Lanka Ports
Authority/ Customs and Government on matters of common interest;
2. To bring together the representatives of various shippers' associations, trade and
industrial associations/organizations, for consideration and discussions of the
problems affecting shippers in Sri Lanka;
3. To represent the views of shippers in regard to the composition of freight rates,
availability and adequacy of shipping space and services including sailings / flights.
Port/ Customs efficiency. Adequacy of Ports and Customs facilities and / charges
4. The Council in principal will not come into agreement on behalf of its members in
relation to freight contracts. (The Council will encourage confidential
shipper/carrier freight negotiations) However, if the circumstances necessitate
negotiation and entering into agreements with ship owners/Conference
Lines/Shipping Agents/Airlines/Airline Agents on matters affecting shippers, which
involve general principles and policies or on such other matters, if referred to the
Council, upon receipt of such matters, the Council will act to safeguard the interest
of the shipper/Country.
5. To undertake research/studies on problems affecting shippers in Sri Lanka.
6. To circulate information and statistical data and to publish newsletters, brochures
etc., for the benefit of shippers.
7. To convene independently or jointly with other organizations, conferences,
seminars or meetings in furtherance of the objectives of the Council;
8. To accept any grants, gifts or donations whether in cash or securities and any
property either movable or immovable and/or give any grants etc., in the
furtherance of the objectives of the Council;
9. To make Rules, Regulations or Bye-Laws for the conduct of the affairs of the Council
and to add, to amend, vary or rescind them as from time to time;
10. In the interest of the shippers, the Council will wherever possible nominate its
members to institutions where key functions in the shipping industry are taking
place.
11. The Council will closely work with international Shippers' Councils in order to
interact and pass on information that could be beneficial for shippers and the
country.
12. To take all such other steps as may be necessary or conducive to the interests of the
Councils' members.
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THE COUNCIL
Mr. Sean Van Dort Chairman
Mr. Nalin Silva
1st Vice Chairman (up to December 2015)
Mr. Chrisso De Mel 2nd Vice Chairman
HONORARY MEMBERS
Mr. S.S. Jayawickrama
Mr. Chullante Jayasuriya
SECRETARY GENERAL
Mr. Mangala P.B. Yapa (Until December 2015) Ms. Dhara Wijayatilake
SECRETARIAT
The Ceylon Chamber of Commerce
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MEMBERSHIP – 2015/2016
TRADE ASSOCIATIONS
The Ceylon Chamber of Commerce Mr. Adrian Oswald Import Section (Representative) Mr. Nishan Nanayakkara (Alternate) Joint Apparel Association Forum Mr. Sean Van Dort (Representative) Mr. Suren Abeysekera (Alternate) The Colombo Rubber Traders’ Association Mr. Nalin Silva (Up to December 2015) (Representative) Mr. Talal Shums (Alternate) The National Chamber of Commerce Mr. Sujeeva Samaraweera of Sri Lanka (Representative) Mr. Tissa Ruberu (Alternate) The Ceylon Coir Fibre Exporters’ Association Mr. Wasaba Jayasekera (Representative) Mr. N. Ramanathan
(Alternate) The Ceylon Chamber of Commerce Mr. Chrisso De Mel (Representative)
Mr. Christopher Koilraj (Alternate)
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The National Chamber of Exporters’ Mr. Shiham Marikar of Sri Lanka (Representative )
Mr. Parakrama Weerasinghe
(Alternate) The Sri Lanka Freight Forwarders’ Mr. Taniya Polonnowita Association (Representative) Mr. Jagath Pathirana (Alternate) The Sri Lanka Apparel Exporters’ Mr. Ajith Jayasekara Association (Representative)
Mr. Naren Vanigasooriyar (Alternate)
Sri Lanka Association of Air Express Mr. Dimithri Perera Companies (Representative)
Sri Lanka Logistics Providers’ Association Mr. Stanley Samarakoon (Representative) Mr. B L Rohitha (Alternate) Tea Exporters’ Association Mr. Gehan Kuruppu
(Representative)
Mr. Shiral Fernando (Alternate)
Sri Lanka Fruits & Vegetable Producers, No Representative Processors & Exporters’ Association
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INDIVIDUAL MEMBERS
Agility Logistics (Pvt) Ltd Ansell Lanka (Pvt) Ltd
Anverally & Sons (Pvt) Ltd
Care Logistics (Pvt) Ltd Ceylon Tea Marketing (Pvt) Ltd
City Cycle Industries Civaro Lanka (Pvt) Ltd
CL Synergy (Pvt) Ltd Control Union Inspections (Private) Limited
20Cube Logistics (Pvt) Ltd
Expolanka Freight (Pvt) Ltd
Eskimo Fashion Knitwear (Private) Ltd
Fascination Exports (Pvt) Ltd Fanam International (Pvt) Ltd
Freight Links International (Pte) Ltd Freight Masters International Pvt Ltd
Finlays Colombo PLC
Green Horizon Enterprises (Pvt) Ltd
Hayleys PLC HDDS
Hela Clothing (Pvt) Ltd Hellmann Worldwide Logistics (Pvt) Ltd
Imperial Teas (Pvt) Ltd
Jiffy Products S.L. (Pvt) Ltd
Kokosfibre Exports (Pvt) Ltd
Leading Lady Intimates Lanka (Pvt) Ltd
MAC Supply Chain Solutions (Pvt) Ltd Mabroc Teas (Pvt) Ltd
Neil Fernando & Co. (Pvt) Ltd
Nestle Lanka PLC
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Riston Teas (Pvt) Ltd
Romina General Trading Company
SALOTA International (Pvt) Ltd
Shermans Logistics (Pvt) Ltd
Singworld Lanka (Pvt) Ltd
Scanwell Logistics Colombo (Pvt) Ltd
Tea Tang Ltd
Timex & Fergasam Group (PvT) Ltd
Universal Freighters International (Pvt) Ltd
UTI Pership (Pvt) Ltd
Van Rees Ceylon Ltd
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The Sri Lanka Shippers’ Council AGM 2014/2015
Seated from Left to Right Ms. Manjula Maldeniya (Secretariat), Mr. Tony De Livera (Sri Lanka Logistics & Freight Forwarders’ Association), Mr. Dinesh De Silva (Immediate Past Chairman), Mr. Nalin Silva (1st Vice Chairman), Mr. Sean Van Dort (Chairman), Mr. Chrisso De Mel (2nd Vice Chairman), Mr. Gehan Kuruppu (Past Chairman), Mr. Sujeeva Samaraweera (The National Chamber of Commerce of Sri Lanka), Ms. Manori Dissanayaka, (Secretariat)
Standing from Left to right Mr. Suren Abeysekera (Joint Apparel Association Forum), Mr. Dimithri Perera (Sri Lanka Association of Air Express Companies), Mr. Ajith Jayasekera (Sri Lanka Apparel Exporters’ Association), Mr. Naren Vanigasooriyar (Sri Lanka Apparel Exporters’ Association), Mr. N. Ramanathan (The Ceylon Coir Fibre Exporters’ Association), Mr. Shiham Marikkar (National Chamber of Exporters), Mr. Adrian Oswald (The Ceylon Chamber of Commerce – Import Section), Mr. Russel Juriansz’ (The Ceylon Chamber of Commerce), Mr. Tissa Ruberu (The National Chamber of Commerce of Sri Lanka)Mr. Stanley Samarakoon (Sri Lanka Logistics Provider’s’ Association),
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OFFICE BEARERS Sri Lanka Shippers’ Council held its 45th Annual General Meeting on the 24th July 2015, followed by “the Post Business Session” and cocktails. The Chief Guest at the occasion was Mr. Tissa Wickramasinghe, General Manager – Commercial & Marketing- Colombo
International Container Terminals Ltd who delivered the keynote address. Mr. Sean Van Dort re-elected as the Chairman for the year 2015/2016. Thereafter, Mr. Nalin Silva and Mr. Chrisso De Mel were re-elected as 1stVice Chairman and 2nd Vice Chairman respectively.
HIGHLIGHTS OF 2014/2015 AGM
Welcoming Mr. Tissa Wickramasinghe General Manager – Commercial & Marketing-
Colombo International Container Terminals
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Head Table: from left to right: Ms. Manori Dissanayaka (Secretariat, CCC), Mr. Dinesh De Silva (Immediate Past Chairman SLSC), Mr. Sean Van Dort (Chairman SLSC), Mr. Nalin Silva (1st Vice Chairman, SLSC), Mr. Chrisso De Mel (2nd Vice Chairman)
ACTIVITIES OF THE COUNCIL
The activities of the Council have been focused on issues faced by shippers on shipping and their operational activities. The Council always performed a lead role in resolving problems and serve as the focal point where various shipping and port, Airport & other authorities’ related matters are brought up and discussed. In addition, the Council largely contributes in advising the Government authorities on matters relating to port and shipping whenever its advice is sought after. The following ten (10) action committees were appointed for better co-ordination and guidance purposes:
Shipping and Logistics related Matters Present Market Indicators - Freight Rates/ Courier rates Customs/Sri Lanka Ports Authority/Maritime Affairs Airport Issues Education and Seminars Membership Drive, Fund Raising & Finances/Accounts SLSC Constitution Asian Shippers’ Council (ASC) Global Shippers’ Forum (GSF) SLSC Website
A detailed description of the activities of the Council appears elsewhere in this report. However, in this section for your easy reference we give below the main topics covered in the report.
Shipping Surcharges
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Present Market Indicators - Freight Rates/ Courier rates Electronic Data Interchange (EDI) Sri Lanka Customs Sri Lanka Ports Authority Asian Shippers Council (ASC) & Global Shippers’ Forum (GSF) Education and Seminars
SHIPPING SURCHARGES New Notices and Guidelines on Extraordinary Gazette Notification no 1842/16 of 27/12/2013 were issued by the Director General of Merchant Shipping. During the year under review, the Council advised its members to take up any matters relating to unethical charges by the service providers to the Director General of Merchant Shipping with the supporting document.
PRESENT MARKET INDICATORS FREIGHT RATES
The year under review saw Export freight rates declining once again towards the last quarter of space well over demand. It was also noted that several new services were launched during this period, giving shippers the comfort of having more options. Also during the year, it was observed that there were several GRIs that were imposed in the second and third quarter mainly due to the unusual buildup of demand both through local exports as well as with huge transshipment volumes where shipping lines also took the advantage to create an artificial demand by a few void calls as well as down grading the vessels creating an excess demand for space in the market. Overall the local shippers continue to have the advantage of better freight rates when compared with other origins in the region. However the problem of poor quality equipment remains to be in the agenda of discussion with very little improvement.
There had not been significant fluctuations in import freight rates ,during the year under review ,there were few increases in freight rates experienced for cargo imported from China ,during seasonal and peak times ,which has remained only for a very short period .However , the overall situation had been favorable to importers , this situation could be attributed to the excess capacity of space .
COURIER RATES During the year under review there is no change in the courier rates.
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SRI LANKA CUSTOMS
The Council is pleased to announce that the dialogues with the Sri Lanka Customs continued, during the year under review. Concerns of the Importers and Exporters with regard to various policy matters and operational issues were brought to the attention of the DG Customs and received positive responses to solve large number of issues during this period. Some of the issues highlighted were;
Operational issues at SL Customs Export Facilitation Centre To open up Customs payment gateway to all private banks Amendments needed for electronic Cargo Dispatch Note ( e-CDN) Request for Customs OT payment online Submission of Import Cargo Manifest Electronically Customs preventive on export manifest issues Criteria for Import/Export samples Destructions of branded items sent to Holcim
Sri Lanka Customs’ single window implementation for Border Regulatory Authorities – January 2016
Sri Lanka’s Minister of Finance Honorable Ravi Karunanayake launched the "Single
Window System" on Monday 04th January 2016 enabling Sri Lanka to be in line with the
international trade regulations of the World Trade Organisation and the World Customs
Organization. The move, the Industry believes will help increase the efficiency of the
Customs related activities.
SRI LANKA PORTS AUTHORITY
During the course of 2014, SLSC has had very productive round table discussions with the SLPA to discuss various issues pertaining to the industry. Some of the issues highlighted were; some of the issues highlighted were; shortage of equipment, shortage of space in warehouses, delays in de-stuffing of LCL cargo within 24 hours, request to link online payment with all banks, to clear Dangerous Cargo after 4.30 p.m.
Revised Port Entry Permit Charges
The Sri Lanka Ports Authority (SLPA) implemented a significant increase in its daily, monthly and annual entry permit fees, effective from 1/1/2016. This irrational increase of Annual Port Permit Charges, to the extent up to about 3-4000% in certain instances. The significant increase of entry rates have been attributed to the fact that the Port entry permit rates have not been revised for the past twenty five years.
The Sri Lanka Shippers’ Council through the Ceylon Chamber of Commerce and other
product associations had taken up this issue with Hon. Minister of Ports and Shipping to
address this key burning issue.
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Two meetings had been convened to date with the Hon. Minister of Ports & Shipping and at
the request of the concerned Stakeholders, a working committee was appointed by the Sri
Lanka Ports Authority. The recommendations of the trade in respect of a realistic increase
in Port Entry Permit Charges was also presented to this Committee.
The Secretary, Ministry of Ports and Shipping had addressed a letter to the Chairman, SLPA requesting a report, based on the recommendations submitted by the Chamber on behalf of the Stakeholders. Once a response is received, the Committee will be updated on the progress accordingly.
IMO MANDATORY WEIGHING OF CONTAINERS BY SHIPPERS, FORWARDERS AND CONSOLIDATORS
The IMO’s Maritime Safety Committee Meeting (MSC 94), following discussions at previous
IMO sub-committee meetings in November 2014, has recently adopted changes to the
Safety of Life at Sea (SOLAS) Convention Chapter VI Regulation 2.
Following this regulation which comes in to effect, 1st July 2016, shippers will be compelled
to comply with mandatory weight certifications done at the origin and it would be a
violation of SOLAS, if a shipper does not have a verified container weight. In the event that
the verified weight has not been provided to the ship’s Master and his representative or the
terminal representative, the container will not be loaded on to the ship.
The Director Merchant Shipping, consequent to consultations with Stakeholders, has issued
a mechanism document outlining the manner in which shippers should comply with this
new regulation, which at present is being studied by the trade.
Shippers, Freight Forwarders, Vessel Operators and Terminal Operators will be required to
establish systematic procedures to ensure requisite implementation of this regulation.
The trade was of the view that this should not be an additional cost added to exporters.
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SRI LANKA SHIPPERS’ COUNCIL 50TH ANNIVERSARY CELEBRATIONS
The year 2016 will be of special significance to the Sri Lanka Shippers’ Council, being its 50th anniversary. Since its inauguration in 23rd March 1966, the Council has played a vital role in the Sri Lankan economy by looking after the interest of Shippers’ and also to serve as a strong advocate to the Government on Shipping & Port related matters. In order to mark the 50th Anniversary of the Sri Lanka Shippers' Council, a tree planting ceremony was held recently at the Hambantota port. The ceremony was held under the distinguished patronage of Hon. Arjuna Ranatunga, Minister of Ports & Shipping
During the ceremony, 25 King Coconut and 25 Cashew plants were planted with the participation of office bearers, past chairmen and members of the Sri Lanka Shippers' Council along with the invitees. The Secretary to the Ministry of Ports and Shipping, Director General of Merchant Shipping, senior officials of the Sri Lanka Ports Authority in Colombo and Hambantota were also among the invitees for the event.
During the Programme, the Hon. Minister Arjuna Ranatunga also unveiled the Sri Lanka Shippers Council 50th Anniversary Logo.
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ASIAN SHIPPERS’ ALLIANCE (ASA)
THE ASIAN SHIPPERS’ COUNCIL ANNUAL MEETING In January 2015, the Council was made aware of a new Shipping Alliance called “Asian Shippers Alliance’’ (ASA) formed joining ASC and ASM. When enquired from the current ASC Chairman, he had confirmed that this alliance was formed at an informal meeting held on 12 September 2014 in Thailand with the participation of Thailand National Shippers’ Council (TNSC), Hong Kong Shippers Council (HKSC) and European Shippers’ Council (ESC).
GLOBAL SHIPPERS’ FORUM (GSF)
The Annual General Meeting of the Global Shippers' Forum took place from 2 to 4 June 2015 in Toronto. Over 35 delegates attended from shipper councils including those representing Canada, Germany, Hong Kong, Korea, South Africa, Sri Lanka, Thailand UK, US and other observer shipper associations. There were also representatives from numerous countries in the membership of the Union of African Shippers' Councils as well as individual shippers taking part in the meeting.
The meeting discussions included:
Actions for a global surcharges campaign for 'all in' container shipping and air cargo rates and to identify regulatory approaches to improve shippers bargaining power
The new joint BIMCO/GSF standard container contract and how the contract can be used by small and medium sized shippers to enhance their bargaining power
Verification of container gross mass weights with GSF best practice advice and activities to assist members with implementation
Anti-trust reforms in Australia and New Zealand, and current reviews in Singapore and Hong Kong of anti-trust immunity and other enforcement activities, including the European Commission price signalling case
GSF's involvement in International Maritime Organization policy work on shipping emissions
An air cargo session to raise awareness of how shippers and carriers are working together to promote sustainable air cargo
Speakers at the meeting included:
Dawn Desjardins, Assistant Chief Economist, Royal Bank of Canada Stephen Brooks, President, Chamber of Marine Commerce US Federal Maritime Commissioner, Honourable Michael A Khouri Sam Brand, International Civil Aviation Organization Celine Hourcade, International Civil Aviation Organization Jan Hoffman, Environmental Office, UN Committee for Trade and Development
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The meeting also included a freight and logistics field trip to see some unique Canadian logistics operations, including the Welland Canal and freight operations at the Port of Hamilton on Lake Ontario.
The GSF is indebted and would like to extend its thanks to the Freight Management Association of Canada for its superb arrangements for this year's annual meeting.
The Council agreed that the 2016 annual meeting would take place in Sri Lanka following the kind invitation of the Sri Lanka Shippers' Council who offered to host it.
FEDERATION OF ASEAN SHIPPERS' COUNCILS (FASC)
There were no significant activities under FASC after the AGM held in New Delhi 2008.
SHIPPERS COUNCIL CONFERS HONORARY MEMBERSHIP ON CHULLANTÈ JAYASURIYA
The Sri Lanka Shippers Council conferred honorary membership on Mr. Chullantè Jayasuriya the former Secretary General of the Ceylon Chamber of Commerce, on March 16, 2016, at a ceremony which was held at The Ceylon Chamber of Commerce. Mr. Jayasuriya was recognized by the Sri Lanka Shippers Council for outstanding services he rendered to the Shippers Council as the Assistant Secretary of the Council, from 1986 to 1992 and as the Secretary General of the Council, from 1992 to 2002. He was also the Secretary General of The Ceylon Chamber of Commerce from 1992 to 2002.
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"We recognized Mr. Jayasuriya for the excellent leadership he gave to the Sri Lanka Shippers' Council during his tenure as the Secretary General and also recognize the continuous support he is providing to the Council even after leaving office,” said Sean Van Dort, Chairman of the Sri Lanka Shippers' Council
EDUCATION & SEMINARS
SLSC- CINEC Scholarship program for Logistics and Trade Industry
Colombo International Nautical and Engineering College (CINEC) offered four scholarships to employees of SLSC membership who are involved in logistics, freight forwarding and supply chain to excel in higher education and enhance their career prospects on those fields. Scholarships on offered were as follows;
1) Professional Diploma In Freight Forwarding 2) Certificate in Logistics Services, Freight Forwarding and Multimodal Transport
(Course approved by Ministry of Ports, Highways and Shipping)
APSN Workshop on Improving Port and Supply Chain Connectivity
Chairman, Mr. Sean Van Dort was invited to represent Global Shippers’ Forum at the above workshop held from November 10-11, at the Radisson Blue Hotel in Cebu City, the Philippines.
APSN is a regional organization networking for stronger port industry and better community. This Workshop was an enhanced effort of APSN to explore the port and supply chain connectivity that would contribute to the APEC’s priority of “enhancing the regional economic integration”.
He was invited to be the honoured Panelist for the Panel Session: Shippers’ Perspective at the Workshop, to share perspective on improving port and supply chain connectivity.
TRADE COMPLAINTS
The Council continues to facilitate the trade by assisting in the mediation of trade disputes among the shipping lines, freight forwarders, NVOCC Operators, and shippers.
REPRESENTATIONS The Council continues to maintain its close association with the Government and Private sector organizations and also with the Trade Associations with a view to have a continued improvement on the required service levels.
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Some highlighted direct representations made during the year were as follows;
EDB Advisory Committee on Trade Facilitation
Maritime Advisory Council on Ports, Shipping & Maritime Affairs–Ministry of Ports &
Shipping
Representations at the Leadership of the Approved Associations meetings of the
Ceylon Chamber of Commerce
Representations at the Steering Committee on Ports, Shipping, Aviation & Logistics
of Ceylon Chamber of Commerce
THE CEYLON CHAMBER OF COMMERCE (CCC) The Chairman of the Sri Lanka Shippers’ Council is a member of the Committee of the Ceylon Chamber of Commerce, the oldest Chamber in Sri Lanka with a history of over 175 years. The Council members have had several meetings with the Chamber officials on policy matters relating to port and shipping.
MEMBERSHIP
The membership of the Council is open to all Trade Chambers and Associations engaged in Shipping and Port related activities as well as individual companies in the import/export trade. The membership committee is responsible for developing and increasing the membership of the Council. During the year under review, the Council approved membership for the following companies/organizations as Individual Members:
1. Green Horizon Enterprises (Pvt) Ltd 2. Eskimo Fashion Knitwear (Private) Ltd 3. Kokosfibre Exports (Pvt) Ltd 4. UTI Pership (Pvt) Ltd 5. Expolanka Freight (Pvt) Ltd
Hub Operators Association of Sri Lanka has joined the Council as a member product association with voting rights. Members Terminated - Canro Exporters Pvt Ltd.
FINANCE
The Ceylon Chamber of Commerce manages the Council funds on behalf of the Council.
WEB SITE www.shipperscouncil.lk
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Shippers’ Council website was revamped with a new outlook. The site is regularly updated with
trade related information and hosts value added services.
SECRETARIAT
The Ceylon Chamber of Commerce provides Secretarial services to the Council. The
infrastructure of the Chamber is readily available to the Council.
BY THE ORDER OF THE COUNCIL
Sgd.
Manori Dissanayaka
For Secretary
THE SECRETARIAT
Sri Lanka Shippers' Council
C/o. The Ceylon Chamber of Commerce
50, Nawam Mawatha, Colombo 2
Direct Tel:+94 11 2392840, 5588871, 5588880
General Tel: +94 11 2421745-7, 5588800
Fax:+ 94 11 2449352, 2437477
E-mail: [email protected]
Website: www.shipperscouncil.lk
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SRI LANKA SHIPPERS’ COUNCIL
SRI LANKA SHIPPERS’ COUNCIL
FINANCE STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2016
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OVERVIEW OF THE ECONOMY
Economic Growth
In 2014, the Sri Lankan economy showed its
resilience in the face of domestic as well as
external challenges. Real GDP grew by 7.4
per cent in 2014, in comparison to the
growth of 7.2 per cent in 2013. Accordingly,
GDP per capita increased to US dollars
3,625 in 2014 from US dollars 3,280 in the
previous year. The economy was driven by
domestic consumption expenditure that
constitutes the largest share of aggregate
demand, while investments, particularly on
construction, also provided an impetus to the
economic expansion during the year. On the
production side, the Industry and Services
sectors continued to perform well, while
adverse weather conditions dampened the
performance of the Agriculture sector during
the year. Inflation remained at single digit
levels for the sixth consecutive year, with
year-on-year and annual average inflation
declining to 2.1 per cent and 3.3 per cent,
respectively, by end 2014, from 4.7 per cent
and 6.9 per cent, respectively, at end 2013.
Prudent monetary policy as well as the
considerable decline in global commodity
prices in the second half of the year enabled
the deceleration of inflation to low single
digit levels during the year. In spite of the
relatively relaxed monetary policy stance,
the effect of declining pawning advances as
a result of lower international gold prices
shrouded the pickup of credit obtained by
the private sector, particularly in the first
seven months of the year. In the absence of
demand pressures on inflation, the Central
Bank took measures to facilitate further
credit disbursements by banks. However,
these measures, along with volatile global
conditions, caused some portfolio
investment outflows and encouraged
imports, increasing the pressure on the
external sector and the exchange rate
towards the latter part of the year. Overall,
the trade deficit widened in nominal terms
during the year, although inflows from trade
in services and workers’ remittances
supported the reduction of the deficit in the
current account. This, together with other
financial inflows, helped strengthen the
balance of payments (BOP), and hence gross
official reserves. The continued inflow of
funds from the expatriate workforce in the
form of remittances and investments aided
an increase in national savings, which
helped reduce the savings-investment gap.
Meanwhile, in the fiscal sector, despite the
government’s announced commitment
towards fiscal consolidation, the overall
fiscal deficit increased to 6.0 per cent of
GDP in 2014 from 5.9 per cent of GDP in
the previous year, mainly as a result of the
continued shortfall in revenue collection.
Nevertheless, central government debt as a
percentage of GDP declined to 75.5 per cent
by end 2014 from 78.3 per cent by end
2013. In the financial sector, the
strengthened regulatory and supervisory
framework, improved risk management
capabilities and adequate buffers to mitigate
risks, enabled financial institutions to remain
resilient during the year.
Going forward, the Sri Lankan economy is
projected to reach upper middle income
levels and sustain the favourable high
growth and low inflation nexus in the
medium term, supported by appropriate
economic policies. The new government is
expected to uphold policies of good
governance and transparency, which would
support a high growth path through an
improved investor friendly environment.
The government faces the enormous task of
articulating a coherent medium term policy
framework, which enhances positive effects
while addressing possible shortcomings of
previously announced policies as well as the
challenges ahead. Some of these challenges
are, the urgent need to address the continued
decline in government revenue as a
percentage of GDP in order to achieve a
better fiscal balance; increasing productivity
of all sectors of the economy, including the
public sector; raising resources required for
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sustained growth through non debt creating
sources, in particular, foreign direct
investments (FDI); developing appropriate
pricing policies for public utilities; better
identification of beneficiaries in
implementing social safety nets and subsidy
programmes; improving the equity and
quality of health and education service
provision; addressing the issue of public
transportation; continuing physical
infrastructure development on a sustainable
basis; formulating policies to address the
challenge of aging population including
improving labour productivity and
promoting the development of
superannuation and insurance products; and,
improving the doing business environment
and policy predictability. Addressing such
challenges would be essential to realise the
projected growth path as envisaged,
enabling the economy to achieve its full
potential while maintaining macroeconomic
stability in a more equitable environment.
Exports grew at a healthy rate in 2014
supported by improved external demand
along with a stable domestic
macroeconomic environment. Earnings from
exports grew by 7.1 per cent in 2014
compared to the previous year and reached
US dollars 11,130 million, reflecting
increases in all major categories. The
highest contribution to export earnings was
from industrial exports, supported by the
substantial increase in exports of textiles and
garments. Earnings from textiles and
garments exports, which accounted for about
44 per cent of total exports, recorded an
increase of 9.4 per cent in 2014, reflecting
increases in garment exports to both
traditional and non-traditional markets.
Meanwhile, earnings from agricultural
exports registered an increase of 8.2 per cent
in value terms due to higher exports of
coconut products, tea and certain minor
agricultural products. Export earnings from
coconut products and tea increased by 74.2
per cent and 5.6 per cent, respectively,
mainly due to higher export volumes.
However, export earnings from spices,
which showed a higher growth of 38.8 per
cent during the previous year declined by
25.6 per cent in 2014 mainly due to low
harvest of main export crops.
Port Services
The Port of Colombo recorded its highest
annual container throughput in history
during 2015 as a result of improved
performance of the Colombo International
Container Terminal (CICT), although the
performance of all other terminals
deteriorated. The overall performance of the
Port of Colombo in terms of total ship
arrivals in 2015 indicated an increase of 12.2
per cent, with container ship arrivals and
conventional cargo ship arrivals increasing
by 12.5 per cent and 60.7 per cent,
respectively. Total container handling in
2015 increased by 5.7 per cent to 5.2 million
twenty foot equivalent container units
(TEUs) from 4.9 million TEUs in 2014.
Transshipment container handling also
increased by 4.9 per cent during the year.
Total container handling of the CICT grew
substantially by 127.5 per cent during the
year, in sharp contrast to the negative
growth of container handling at other
terminals. Accordingly, the shares of the Sri
Lanka Ports Authority (SLPA), Air
Passenger and Air Cargo Handling Chart 3.6
0 50 100 150 200 250 0 1 2 3 4 5 6 7 8 9
2011 2012 2013 2014 2015 millions MT
('000) Passenger Handling Transit
Passengers Cargo Handling South Asia
Gateway Terminal (SAGT) and CICT in
total container handling were at 43.4 per
cent, 26.4 per cent and 30.1 per cent,
respectively, in 2015, in comparison to the
shares of 52.1 per cent, 33.9 per cent, and
14.0 per cent, respectively, in 2014.
Currently, the CICT handles mega container
vessels, which cannot be operated either at
the Jaye Container Terminal (JCT) or
SAGT. Total cargo handling at Ports of
Colombo, Trincomalee, Galle and
Hambantota amounted to 77.6 million MT,
recording a lower growth of 4.3 per cent, in
SLSC Annual Report 2015/2016 Page 26
comparison to the growth of 12.3 per cent
recorded in the previous year. Break Bulk
cargo handling increased by 53.7 per cent,
due to the increased imports of fertiliser and
iron/steel at both Colombo and Hambantota
Ports. Meanwhile, total vehicle handling at
the ports of Hambantota and Colombo
increased by 17.1 per cent, driven by the
significant growth in domestic vehicle
handling by 138.0 per cent, while vehicle
transshipments, which are handled only at
the Hambantota Port, recorded a negative
growth of 27.6 per cent.
Construction of Phase I of the East
Container Terminal (ECT) at port of
Colombo was completed in 2015. Phase I
included the construction of a 440 metre
long quay wall consisting of a 30 metre rail
span, 20 metre wide back-reach area and a
two lane road, a container yard on reclaimed
land consisting of 12 dry stack lanes, one
reefer lane and 30 metre wide peripheral
roads, as well as services and utilities
consisting gates, a fuelling station, electrical
substations, sewerage treatment plant,
firefighting system, water storage and
distribution network and a storm water
drainage system. According to the Master
Plan of the Colombo South Harbour
Development Project, the ECT, once
completed, could accommodate 2.4 million
TEUs per annum, and will have a quay
length of 1,200 metres, consisting three
container berths with a water depth of 18
metres.
The construction of Phase II of the
Hambantota port continued in 2015. The
project includes four container berths, a
public terminal and an artificial island. The
total estimated construction cost of Phase II
of the Hambantota port is US dollars 808
million and construction is expected to be
completed during 2016. During the year, the
SLPA entered into a 10-year lease
agreement with Litro Gas Terminal Lanka
(Pvt) Ltd for the operations of the LPG
facility at the Hambantota port. However,
due to the poor demand for this operation,
the SLPA management is in the process of
reviewing the agreement. The bunkering
facilities and tank farm project at
Hambantota port includes 14 tanks with
80,000 cubic metre capacity. The
construction of the bunkering facility has
already been completed and handed over to
the SLPA by the contractor at the end of
2014. Due to operational losses incurred in
bunkering operations during the period from
June 2014 to February 2015, the SLPA
requested proposals to attract a strategic
partner with experience in the field to
operate the bunkering facility on lease basis.
The financial performance of the SLPA
declined marginally during the year 2015.
As per unaudited provisional financial
statements, the SLPA recorded an
operational profit of Rs. 6.0 billion,
compared to Rs 7.3 billion in 2014. This was
the combined outcome of an increase in total
revenue by 8.8 per cent to Rs. 40.8 billion
and increase in operating expenditure by
15.3 per cent to Rs. 34.8 billion. Meanwhile,
the construction of the Port City project,
which was suspended in 2015, is expected to
recommence in the first half of 2016.
EXPORT PERFORMANCE
Improved external demand along with stable
domestic macroeconomic environment
supported the local industries in achieving
enhanced export performance in 2014.
Accordingly, earnings from exports
increased by 7.1 per cent to a value of US
dollars 11,130 million in 2014 compared to
US dollars 10,394 million in 2013, with
contributions from all major categories of
exports.
Industrial exports which represent about 75
per cent of total exports contributed largely
to export growth in 2014. Earnings from
industrial exports increased by 6.6 per cent,
year-on-year, to a value of US dollars 8,262
million in 2014, mainly due to a significant
SLSC Annual Report 2015/2016 Page 27
increase in textiles and garments exports,
which increased by 9.4 per cent to a value of
US dollars 4,930 million. The growth in
textiles and garments exports contributed for
more than 50 per cent of the total growth in
exports. The garments exports to the EU and
the USA increased by 10.6 per cent and 8.8
per cent, respectively. Meanwhile, exports to
non-traditional markets increased by 10.5
per cent compared to 8.9 per cent increase in
2013. The measures adopted by the
authorities and industry participants to
penetrate non-traditional markets helped
achieve a higher growth of exports to those
markets. Export earnings on leather products
grew by 80.8 per cent to a value of US
dollars 139 million in 2014, mainly due to a
higher level of exports of footwear to
Western markets. Sri Lankan footwear
exporters gained a reputation as suppliers of
fashion footwear among reputed
international brands. Export earnings on
food, beverages and tobacco, and machinery
and mechanical appliances also increased
substantially in 2014. However, export
earnings on petroleum products, which
mainly comprise of bunker and aviation fuel
declined by 21.0 per cent to a value of US
dollars 338 million, amidst intense
competition from the major regional players,
such as India and Singapore. Further, Sri
Lanka is relatively less competitive in the
bunker and aviation fuel industry, as the unit
cost increases due to heavy reliance on
imported fuel from regional markets and
also due to limited storage capacity. Exports
of diamonds also declined by 32.8 per cent
due to non-operation of a major industry
player, while gem and jewellery exports
sustained its growth momentum during the
year.
Agricultural exports which contribute for
around a quarter of total exports improved
further during the year. Earnings from
agricultural exports increased by 8.2 per
cent to a value of US dollars 2,794 million
in 2014 led by exports of coconut products,
tea and certain minor agricultural products.
Exports of coconut products increased by
74.2 per cent to US dollars 356 million in
2014, mainly due to enhanced performance
of kernel product exports, such as desiccated
coconut and coconut oil, supported by the
favourable weather conditions prevailed in
the previous year. Export earnings from tea,
which account for about 15 per cent of total
exports, grew by 5.6 per cent in 2014
compared to 9.2 per cent growth recorded in
2013. The slower growth of tea exports
reflects decelerated demand from the main
export destinations such as Russia and the
Middle East which account for about 59 per
cent of total tea exports. These countries
experienced large revenue shortfalls, as oil
prices declined, while Russia experienced
large depreciation in the Ruble amidst
economic sanctions due to geopolitical
issues. However, as Sri Lanka supplied high
quality orthodox tea which attracts higher
demand in the international markets, the
export price of Sri Lankan tea averaged at
US dollars 4.97 per kg, recording an
increase of 3.1 per cent from the previous
year and above the average international tea
price of US dollars 2.72 per kg in 2014.
Minor agricultural exports increased by 63.1
per cent to a value of US dollars 165
million, as exports of arecanuts and fruits
increased registering substantial growth of
300.5 per cent and 51.7 per cent,
respectively. Sea food and vegetables,
categorised under agricultural exports also
performed well during the year. However,
the export of spices which showed
remarkable performance during the previous
year slowed in 2014. Earnings on exports of
spices declined by 25.6 per cent to a value of
US dollars 265 million in 2014 compared to
an increase of 38.8 per cent in 2013. This
was mainly due to the lower harvest of main
export crops i.e. cinnamon, pepper, cloves,
mace and nutmeg in 2014 compared to the
bumper harvest recorded in 2013. Further,
export earnings on rubber also declined by
36.5 per cent to US dollars 45 million,
reflecting a decline in both price and the
quantity. Rubber prices in the international
market declined throughout the last four
years due to higher global supply and
SLSC Annual Report 2015/2016 Page 28
reduced demand for natural rubber from
major rubber consuming economies such as
China and India. Mineral exports including
earths and stones, ores, slag and ash, and
precious metals increased by 15.3 per cent to
US dollars 59 million in 2014. Sri Lanka’s
exports sector faced many challenges in the
domestic and external front. Restriction on
sea food exports to the EU with effect from
mid January 2015, which is the main sea
food market accounting for about 40 per
cent of total sea food exports, posed a great
challenge to sea food exporters. However,
with the corrective actions being taken by
the government, the problem is expected to
be solved during the year. In the meantime,
if the Russian ruble continues to depreciate
further in 2015, it will have negative impact
on Sri Lanka’s tea exports since Russia is
the main single buyer of Sri Lankan tea
while demand for tea in the Middle East
market could also decrease due to the
continued decline in the oil income of these
economies. Further, it is expected to regain
the GSP+ facility, which provides
concessional access to the EU market,
especially for textiles and garment products.
However, in addition to these concessional
market access opportunities, more
concentration on moving up in the value
chain ladder, backward integration,
productivity enhancement and technological
innovation are essential to counter the
intense competition. Further, concentration
of export products is a main concern as two
thirds of Sri Lanka’s export earnings depend
on a few products such as textiles and
garments, tea and rubber products even
though product differentiation within those
categories have improved significantly in
the recent past.
Import Performance
Import Performance Expenditure on imports
declined in 2015, largely reflecting the
downward movement of international
commodity prices, especially crude oil, and
policies introduced by the government and
the Central Bank to rationalise imports.
Accordingly, in 2015, the expenditure on
imports declined moderately by 2.5 per cent
to US dollars 18,935 million, compared to
the US dollars 19,417 million in 2014.
Meanwhile, expenditure on non-fuel imports
increased considerably by 9.6 per cent to US
dollars 16,235 million, indicating the impact
of the decline in global oil prices. The
expenditure on non-fuel imports increased
mainly due to the significant increase
recorded in the importation of personal
motor vehicles, with the reduction of import
tariff for selected motor vehicles, as well as
the depreciation of the Japanese yen.
Expenditure on intermediate goods imports
declined significantly by 15.4 per cent to US
dollars 9,638 million in 2015, compared to
US dollars 11,398 million in 2014, reflecting
the substantial decline in expenditure on fuel
imports. The fuel import bill in 2015
declined by US dollars 1,898 million to US
dollars 2,700 million, recording a 41.3 per
cent decline over the previous year, due to
the drop in both import prices and volumes.
In line with the substantial reduction in
international oil prices, the average import
price of crude oil declined by 47.6 per cent
to US dollars 54.80 per barrel in 2015, from
US dollars 104.53 per barrel recorded in
2014. Meanwhile, the volume of crude oil
and refined petroleum products imports
declined by 2.0 per cent and 1.9 per cent,
respectively, in 2015, due to the shutting
down of the refinery for maintenance
purposes during March and April 2015 and
the substantial reduction in thermal power
generation. Accordingly, fuel imports as a
share of total imports declined to 14.3 per
cent in 2015, when compared to 23.7 per
cent recorded in the previous year.
Meanwhile, the import volume of coal
increased by 17.1 per cent, leading to a
marginal increase of expenditure on coal
imports to US dollars 159 million in 2015,
mainly due to the increase recorded in coal
power generation. In line with the reduction
recorded in garments exports, import
expenditure on textiles and textile articles
also showed a decline by 1.3 per cent to US
SLSC Annual Report 2015/2016 Page 29
dollars 2,296 million, compared to US
dollars 2,328 million in 2014. However,
rubber and articles made of rubber, chemical
products, vehicle and machinery parts,
fertiliser, and unmanufactured tobacco,
classified under intermediate goods,
contributed positively towards increased
import expenditure in 2015.
Despite the marginal reduction recorded in
the expenditure on food and beverages,
import expenditure on consumer goods
increased considerably due to the significant
increase in the importation of consumer
durables. In 2015, expenditure on consumer
goods increased significantly by 22.3 per
cent to US dollars 4,713 million, mainly due
to the 39.1 per cent growth to US dollars
3,086 million recorded in the expenditure on
consumer durables, led by higher
expenditure on importing personal motor
vehicles.
Expenditure on the importation of motor
cars increased significantly by 47.6 per cent,
contributing towards increasing the vehicle
import expenditure by 51.6 per cent to US
dollars 1,360 million in 2015, from US
dollars 897 million in 2014. The
continuation of the concessionary motor
vehicle permits for government employees,
reduction of taxes on the importation of
motor vehicles, especially less than 1000 CC
engine capacity and the depreciation of the
Japanese Yen, caused the increase in
consumer durable imports, especially motor
vehicles. The significant domestic demand
for imported goods was reflected in the
increase in since April 2014, started to
decline from May 2015, due to the increase
in the import tariff, consequent to the ample
supply of rice in the local market due to the
bumper paddy harvest recorded in both the
Yala and Maha seasons in 2015. Further,
import expenditure on dairy products
declined by 26.1 per cent in 2015, mainly
due to the decline recorded in the
expenditure on milk powder imports, owing
to the significant reduction in the average
imported price of milk powder, despite the
large increase in the import volume.
Import expenditure on investment goods
increased by 10.0 per cent to US dollars
4,567 million in 2015, reflecting increases in
all sub categories. However, the largest
contribution for this increase came from
transport equipment, followed by machinery
and equipment. Import expenditure on
transport equipment increased significantly
by 31.6 per cent to US dollars 931 million in
2015, mainly due to higher imports of road
vehicles, particularly, auto trishaws, lorries,
commercial cabs and agricultural tractors.
Import expenditure on machinery and
equipment, which mainly comprise
engineering equipment, electronic
equipment, telecommunication devices and
office machinery, increased by 6.9 per cent
to US dollars 2,278 million in 2015.
Expenditure on the import of building
materials, which mainly comprise cement,
iron and steel, aluminium articles and
mineral products, increased by 3.3 per cent
in 2015 to US dollars 1,352 million, led by
the 19.4 per cent growth recorded in the
expenditure on articles of iron and steel over
the previous year.
Direction of Trade
The Western countries continued to be the
main destination for Sri Lankan exports in
2015, while the Asian countries dominated
Sri Lanka’s imports. The USA and the UK
remained the largest export destination
countries, while India, followed by China
and Japan, as the foremost import-
originating countries. India, China and the
USA continued to be the leading trade
partners of Sri Lanka recording more than
US dollars 3 billion trade with each county
in 2015. In addition, the UK, Japan, UAE
and Singapore were the other trading
partners with Sri Lanka that had trade
amounting to more than US dollars 1 billion
each in 2015. Total trade with India, China,
Japan and the USA increased in 2015,
compared to the previous year, while trade
with Russia and some countries in the
Middle East and the EU declined.
SLSC Annual Report 2015/2016 Page 30
The USA remained as a key buyer from Sri
Lanka and the share of total exports to the
USA increased to around 27 per cent in
2015, compared to 25 per cent in the
previous year. In 2015, total exports to the
USA increased by 2.9 per cent to US dollars
2,810 million, while garment exports to the
USA which amounted to 46.3 per cent of
total garment exports, increased by 6.0 per
cent to US dollars 2,110 million, surpassing
the EU after 2007. Despite the significant
decline recorded in seafood exports to the
EU market, the UK continued to be the
second largest export destination in 2015,
accounting for 9.8 per cent of total exports.
Garments and rubber products were the
main export items which accounted for 79.2
per cent and 2.9 per cent, respectively, of
total export to UK in 2015. Total exports to
the UK declined by 7.8 per cent to US
dollars 1,029 million in 2015, mainly due to
the decline recorded in garment exports
followed by rubber product and seafood
exports. In 2015, total exports to India
which comprise 6.1 per cent of total exports,
increased by 3.0 per cent, to US dollars 643
million, compared to US dollars 625 million
in 2014, largely driven by exports of spices,
transport equipment and animal fodder. As
the third largest exporter of Sri Lanka, India
was the main buyer of spices, minor
agricultural products and animal fodder,
while the second largest buyer of transport
equipment exported from Sri Lanka in 2015.
China became a major buyer during the
year, raising its position up to the sixth
largest export destination from the thirteenth
position in the previous year, owing to the
significant growth recorded in transport
equipment, garments and tea exports.
India continued to be the largest source of
imports with a share of 23 per cent in total
imports in 2015. Although total expenditure
on imports declined by 2.5 per cent in 2015,
imports from India increased by 6.1 per cent
to US dollars 4,268 million, mainly driven
by the significant increase in the importation
of motor vehicles for personal use and
investment purposes, due to the reduction of
import taxes on motor vehicles, especially
for less than 1,000 CC small vehicles by the
interim budget presented in January 2015.
Accordingly, the importation of cars, motor
cycles and trishaws from India increased by
565.6 per cent, 15.5 per cent and 56.3 per
cent, respectively, in 2015. However,
petroleum product imports which comprise
the largest portion of import expenditure
from India, declined significantly by 20.3
per cent in 2015, due the impact of lower oil
prices. Meanwhile, imports from China,
which account for around 20 per cent of
imports, increased by 6.3 per cent to US
dollars 3,712 million in 2015, led by the
imports of base metal, machinery and
equipment, building materials, fertiliser,
seafood and textiles and textile articles.
Imports from Japan increased significantly
by 47.6 per cent to US dollars 1,389 million
in 2015, mainly due to the large increase
recorded in vehicle imports for personal use
and investment purposes, the significant
depreciation of the Japanese yen and the
changes in import tariff structures in Sri
Lanka. Japan, the fifth largest importer since
2012, raised its position up to third largest
importer of Sri Lanka in 2015, surpassing
the UAE and Singapore.
(Source: Central Bank of Sri Lanka
Annual Report 2015)