SLPA to incur overall revenue drop of Rs. 2.5 b in April

Tuesday, 28 April 2020 00:37 - - {{hitsCtrl.values.hits}}

The Sri Lanka Ports Authority (SLPA) yesterday predicted a Rs. 2.5 billion or 50% drop in its overall in revenue this month given the COVID-19 pandemic.

“Considering the current situation, we are expecting a 50% drop in our overall revenue this month compared to last year, which is about Rs. 2.5 billion,” SLPA Chairman General Daya Ratnayake told Daily FT.

He also said that the TEUs handled at Colombo Port dropped 22% year-to-date. Regardless of the downward situation, the number of vessels calling at the port has increased by 2.2% during the first four months.

The Chairman said the targets previously outlined would be revised in the coming months.

As shipping was announced as an essential service during the ongoing COVID-19 crisis, almost all personnel at the SLPA were called for work it resulted in an additional cost in providing transport during curfew, food, sterilisation of the premises and health gear.

“The COVID-19 pandemic has really put almost all economies navigating in uncharted waters, but amidst the challenges we at SLPA are managing to stay afloat,” Ratnayake added.

Noting that there had been some issues with storage with both Colombo and Hambantota reaching full capacities, Ratnayake said all concerned stakeholders had now been informed to provide necessary arrangements to clear the goods from the ports.

“We understand that it is a difficult to clear the goods with limitations on mobility in the country. Thereby, we have now made arrangements with the relevant authorities and financial institutions to assist the importers in clearing the containers and vehicles that are stuck at port premises,” he added.

Whilst most of the importers had adhered to clearing their goods, he said LC cargo importers’ response had not been adequate given the situation.

Ratnayake also commended the support extended by Sri Lanka Customs Department in clearing out the cargo. Accordingly, with minor staff the department has been able to clear around 1,500 containers on a daily basis, which is almost 80% to 90% of its capacity on a regular day.

The Chairman called on for self-discipline, right attitude and tolerance during these difficult times, as business and work processes may not function as usual.

“Everyone needs to corporate to overcome the difficulties we are faced with. It is not limited to a particular sector or person; we all are in this together. Those at public and private institutions are also working beyond the normal risk factors and therefore the tolerance levels and right mindset will allow us in a win-win situation,” he pointed out.