Call to liberalize Sri Lanka shipping for an export competitive economy

Two senior officials representing shippers in Sri Lanka have called for the liberalization of the country’s shipping industry to end protectionism and promote competitiveness. They argue that Sri Lanka risks falling behind other countries that have already liberalized their shipping industries and have seen more overall businesses, including small and medium businesses. They suggest that opening up the sector to foreign investment and ownership would force the industry to enhance its competitiveness and eliminate hidden inefficiencies while creating new niches for smaller players and making export markets more accessible to Sri Lankan SMEs. However, opponents of liberalization argue that opening up domestic shipping agencies to foreign ownership would risk removing domestic participation in this lucrative business without securing significant benefits for the nation. Despite decades of deadlock between the two camps, Sri Lanka’s unprecedented economic crisis and urgent need for foreign currency inflows have re-energized arguments in favor of liberalization.