By:Staff WriterColombo (LNW): Sri Lanka has improved its position to 73 out of 139 countries in the latest global Logistics Performance Index (LPI) compiled by the World Bank, up from 92nd place in the previous assessment made in 2018.
Sri Lanka has an LPI score of 2.8 in the 2023 index released last week whilst in the list the score was 2.65. Sri Lanka has been ranked at number 73 along with Argentina, Montenegro, Rwanda, Serbia, and Solomon Islands.
In terms of infrastructure, Sri Lanka’s ranking improved to 89th place from 104; as per logistics competence and quality the country was ranked at number 81st up from 85th; 59th in terms of timeliness up from 113th and in tracking and tracing .
Sri Lanka was 65th up from 81st and in international shipments Sri Lanka rose to 75th as against 108th in 2018 ranking. In terms of customs, Sri Lanka has slipped to 84th position from 77th place reinforcing the need to reform and overhaul archaic procedures and regulations.
Singapore tops the ranking up from 5th place from the previous report compiled in 2018 and displaced Germany from the top slot. Finland was ranked second whilst Denmark, Germany, Netherlands and Switzerland are group as third rank.
UAE (up from 14th place), Hong Kong figure as 7th ranked along with Austria, Belgium, Canada and Sweden.
The World Bank’s LPI is a measure of countries’ ability to move goods across borders with speed and reliability.
The seventh edition of Connecting to Compete, the LPI Report comes after three years of unprecedented supply chain disruptions during the COVID-19 pandemic, when delivery times soared.
The LPI measures the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade and transport-related infrastructure, and border controls.
“Logistics are the lifeblood of international trade, and trade in turn is a powerful force for economic growth and poverty reduction,” said World Bank Trade, Investment and Competitiveness Global Director Mona Haddad.
“The Logistics Performance Index helps developing countries identify where improvements can be made to boost competitiveness,” Haddad added.
The LPI 2023 Report said on average across all potential trade routes, 44 days elapse from the time a container enters the port of the exporting country until it leaves the destination port, with a standard deviation of 10.5 days. That span represents 60% of the time it takes to trade goods internationally.
According to LPI 2023, end-to-end supply chain digitalization, especially in emerging economies, is allowing countries to shorten port delays by up to 70% compared to those in developed countries. Moreover, demand for green logistics is rising, with 75% of shippers looking for environmentally friendly options when exporting to high income countries.
“While most time is spent in shipping, the biggest delays occur at seaports, airports and multimodal facilities. Policies targeting these facilities can help improve reliability,” said World Bank
r. Such policies include improving clearance processes and investing in infrastructure, adopting digital technologies, and incentivising environmentally sustainable logistics by shifting to less carbon-intensive freight modes and more energy-efficient warehousing.