President intervenes to ensure policy reversal on freight

• Exporters and services providers confirm move after meeting with President on 25 April
• Industry sources claim Shipping Ministry slow to action President’s instruction

The Daily FT reported on 27 March, (https://www.ft.lk/front-page/Export-sector-awaiting-urgent-relief-over-sudden-and-unprecedented-policy-reversal/44-746780) that exporters were awaiting relief as the Shipping Ministry unilaterally had removed the Gazette 2041/10 of 2017 which brought in transparent competition laws for imports and exports making them market driven since 2013. Sources from the export sector confirmed that the President had met them on 25 April, and had informed that the Gazette that was rescinded, will be re-introduced and he had given instructions to the Secretary of the Ministry of Ports, Shipping and Aviation to do so.

The status quo will be re-established and the President has informed that he will be appointing a committee afterwards to look into the macro picture of the shipping industry. Sources say that the President also has a clear understanding of what has happened and also dismissed certain theories that the Gazette was rescinded due to a Supreme Court determination on an amendment to an Act. Industry sources said that the President, being a lawyer, has clearly understood that the rescinding of the said Gazette had nothing to do with amending an Act.

The service providers too have now confirmed that they too had a meeting on 19 April, with the President and that he had instructed them to adhere to the previous status of all-inclusive rates. The exporters say that they are very thankful to the president and his understanding of the matter in depth will hopefully resolve the matter permanently.

Sources from the services sector said that they have already informed their membership to adhere to the President’s request and were awaiting the same in a written format from the Secretary Ministry of Shipping.

On another development, Daily FT learns that the Secretary Shipping had not yet acted on the President’s instructions to reinstate the Gazette and there is a clear delay of executing the direction to reinstate the Gazette said an exporter.

In the meantime from other reliable sources, it is understood that a certain party has given instructions to a consolidators’ association to take legal action against the said Gazette, while certain shipping association members have now decided not to break up freight as originally planned, respecting the President’s decision.

The industry says, this whole drama was created by certain individuals attached to the Ministry of Shipping, probably misguiding the Minister himself, for reasons best known to all of them.