Colombo Port charging demurrage amidst forex crisis irks private sector

Thursday, 15 July 2021 02:01 - - {{hitsCtrl.values.hits}}

Manufacturers dependent on imported inputs are frustrated over Colombo Port charging demurrage on delayed clearance for no fault of firms but scarcity of US Dollars.

“Non-availability of dollars and other restrictions have placed on banks by the Government have created numerous issues to the local manufacturers who depend on imported inputs,” private sector sources said.

“While the Government’s stance from an exchange rate management stand point is understandable, Colombo port imposing demurrage ignoring the critical issue of non-availability of dollars cannot be justified,” they complained.

“Government placing restrictions on the issuance of dollars and then charging demurrage is unjustifiable,” they added.

It was also pointed out that many exporters are suffering due to delays in honouring orders and cost escalation as a result leading to lack of competitiveness in export markets.

They fear the current crisis could lead to further depreciation of the rupee and aggravate the forex crisis.