The recent actions taken by the Sri Lanka Customs Officers’ Union, including a two-day “sick leave” campaign and work-to-rule initiatives, have had profound implications across Sri Lanka’s business community, particularly affecting exporters and importers.
These actions were initiated due to perceived grievances and unmet demands from the Customs Officers’ Union on various issues. President of the National Chamber of Exporters of Sri Lanka (NCE), Jayantha Karunaratne, highlighted the significant disruptions caused by these actions. He emphasized that the work-to-rule approach has resulted in substantial delays in clearing imported goods at ports and checkpoints, causing disruptions in production schedules and logistical operations.
These delays have particularly impacted exporters, who face stringent deadlines to fulfill international orders, leading to strained relationships with overseas buyers and potential financial penalties for missed deliveries.
For exporters handling perishable goods like seafood and fresh produce, delays have posed substantial challenges, sometimes resulting in significant financial losses and resource wastage from spoiled goods.
The NCE underscored Customs’ critical role in facilitating trade and economic activity in Sri Lanka, stressing that efficient and predictable Customs processes are crucial for maintaining the competitiveness of Sri Lankan businesses globally.
Expressing serious concern about potential escalations, the NCE warned that prolonged strikes or ongoing disruptions could further destabilize business confidence and investor sentiment. They urged swift and constructive dialogue between the Customs Officers’ Union and relevant authorities to address grievances and find mutually beneficial solutions. In addition to operational disruptions, exporters are increasingly voicing frustration and concerns about Sri Lanka’s future business environment.
Secretary General/CEO of NCE, Shiham Marikar, stressed the urgent need for Sri Lanka to address these challenges promptly to retain and attract businesses. He emphasized the importance of creating a supportive environment for exporters characterized by efficient Customs processes, regulatory stability, and supportive government policies. Highlighting the competitive nature of the global economy, the NCE emphasized the necessity for Sri Lanka to maintain a reliable and efficient trade infrastructure to remain competitive internationally.
It is crucial for the government to take swift action to prevent recurring disruptions caused by the Customs Officers’ Union. The recent disruptions have disproportionately affected Small and Medium Enterprises (SMEs), which are the backbone of Sri Lanka’s economy. SMEs, operating with smaller margins and less flexibility, are particularly vulnerable to delays and uncertainties in trade operations.
These disruptions not only impact daily SME operations but also undermine their competitiveness in domestic and international markets.
Many SMEs rely heavily on timely imports and efficient exports to sustain operations, making disruptions detrimental to their growth and viability. Prolonged instability in trade operations risks SMEs relocating or downsizing operations in Sri Lanka, posing significant threats to employment, economic growth, and overall stability.
The NCE urged the government to implement robust measures to prevent future disruptions, including constructive dialogue with Customs officers and reforms enhancing Customs efficiency and predictability.
In conclusion, the NCE called on the government to prioritize Exporters interests and take decisive action to safeguard against future trade disruptions.
“By doing so, Sri Lanka can fortify its Exports sector, strengthen its economic foundation and ensure sustainable development for the benefit of all stakeholders.”
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