FTZMA urges govt. to fast-track ADB-funded container yard in Kerawalapitiya
August 16, Colombo (LNW):The Free Trade Zone Manufacturers’ Association (FTZMA) has called on the Sri Lankan government to expedite the implementation of an Asian Development Bank (ADB)-funded container-clearing yard in Kerawalapitiya, aimed at reducing the cargo delays currently plaguing the Colombo Port.
The proposed facility, with a capacity to handle 3,000 containers, was recommended in a 2020 ADB study but is still awaiting approval from the Finance Ministry.
During a recent meeting between FTZMA representatives and senior officials of Sri Lanka Customs (SLC), it was revealed that the Colombo Port releases around 1,400 to 1,500 containers daily.
However, due to limited capacity, SLC manages to clear only 600 containers, or about 45% of the total, which are then distributed across three existing yards: Grayline 1 Yard, Rank Container Terminal Yard in Orugodawatta, and Grayline 2 Yard in Grandpass.
FTZMA has emphasized that the new facility, once approved, could offer five times the capacity of these current yards, potentially solving a problem that costs millions of rupees each day and causes significant delays in production schedules for exporters under the Board of Investment.
Sri Lanka Customs has expressed concerns over the Finance Ministry’s hesitation to approve the Kerawalapitiya container-clearing yard, which could alleviate the severe congestion that has been costly and time-consuming.
The ADB, responding to a request from SLC, conducted a comprehensive feasibility study in 2020 on using a 25-acre land in Kerawalapitiya owned by the Urban Development Authority for this purpose.
The proposed Rs. 7 billion yard, once completed, would significantly exceed the current capacity of all three private container yards and the Colombo Port itself.
The existing yards—Grayline 1, Rank Container Terminal, and Grayline 2—currently occupy a total of 17 acres and have limited capacity, accommodating up to 600 containers combined.
The proposed ADB-funded yard, on the other hand, could hold up to 3,000 containers, dramatically improving the efficiency of cargo handling in the region.
A recent 24-hour strike by Customs officials against the proposed Sri Lanka Revenue Authority Bill exacerbated the problem, with over 1,000 containers left unloaded at the Colombo Port, in yards, and even along roads.
A senior Customs official noted that while some trade union actions are inevitable due to government decisions, the establishment of the new yard in Kerawalapitiya could address many of these issues, including time wastage and financial losses.
FTZMA Chairman Dhammika Fernando pointed out that the ongoing delays in cargo clearance have caused vessels to bypass Sri Lanka, threatening delivery commitments to international brands and further tarnishing the country’s economic reputation.
He expressed concerns that interference by owners of private cargo clearing yards may have influenced the Finance Ministry’s reluctance to approve the project.
Fernando urged the government to prioritize the commissioning of the new yard to reduce congestion and improve the efficiency of container examination, which currently lacks a proper priority management system.
