'Customs clearance inefficiencies costing SL Rs 200 billion annually'

Sri Lanka's outdated customs clearance system is costing the nation's businesses billions in lost revenue and escalating costs, according to Mohamed Niyas, former chairman of the Association of Clearing and Forwarding Agents of Sri Lanka.

- BY IFHAM NIZAM

Speaking to The Island Financial Review, Niyas warned that the country's customs risk management model, the ASYCUDA automated platform, is not only outdated but actively sabotaging trade efficiency. “Customs is not just broken—it's actively working against trade efficiency and national interest, he said.

With Sri Lanka importing nearly 500,000 containers annually and volumes rising by 10% year-on-year, smooth port operations are critical. Yet, instead of containers clearing within hours, importers now face waits of up to seven days, said Niyas. This inefficiency costs the economy an estimated Rs. 200 billion each year. Demurrage fees alone are bleeding out an estimated USD 600 million, with another USD 30 million wasted on container yard charges.