Sri Lanka Logistics and Freight Services Association Calls for Urgent Government Planning

04-Mar-2026

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The Secretary of the Sri Lanka Logistics and Freight Services Association, Inam Kapoor, stated that shipping companies are planning to impose additional charges to cover increased insurance costs due to the conflict situation in the Middle East. 

He urged the government to implement urgent measures to prevent a rise in prices of essential goods.

He made these remarks at a media briefing held in Colombo on March 3.

Kapoor explained that rising tensions between Iran and Gulf countries could significantly impact Sri Lanka. Due to the conflict in the Middle East region, shipping companies are expected to impose additional surcharges to offset higher insurance costs. This would increase the import cost of goods brought to Sri Lanka from the affected region, leading to a significant rise in market prices of essential items.

Middle Eastern countries are major consumers of Sri Lankan tea. If shipping charges increase due to the conflict, tea exports will become more expensive, severely affecting the local tea industry. He stressed that the government must provide necessary concessions to exporters to help them manage the crisis.

He also noted that ships may be forced to take longer routes due to the conflict, increasing travel time. Vessels that normally arrive within four days may take six to ten days to reach Sri Lanka. Proper planning is essential to prevent shortages during the upcoming Ramadan festival and the Sinhala and Tamil New Year period.

Although Sri Lanka imports fuel from India and Singapore, and no major fuel disruption is expected at present, exporters remain crucial in managing the economic crisis. Therefore, the government must immediately provide them with the required support.

Kapoor further stated that while the crisis poses challenges, it also presents opportunities. If Gulf ports are affected, Sri Lankan ports could provide services to vessels operating in the region, creating economic benefits. Effective leadership by the Ports Authority will be essential.

He emphasized the need for negotiations with shipping companies to capture new markets and called on the government to consult export associations and provide diplomatic solutions, particularly special concessions for tea exporters. With proper planning, Sri Lanka can minimize negative impacts and create new economic opportunities.