Tap Forex crunch Indian Exporters in Sri Lanka

Large-scale exports from the port of Tutukudi to Sri Lanka are not clear at the port of Colombo due to the island’s export crisis. About 60% of Sri Lanka’s domestic demand comes from southern ports, particularly Tutukudi.

Sri Lankan rupee depreciated sharply against the dollar, causing Foxes to fall. Rising inflation and rising oil prices have exacerbated the situation. Banks cannot issue loans to local exporters to pick up the goods. About 1,500 containers are shipped each month from the port of Tutukudi to neighboring countries, sources said.

About 2,000 containers from Tutukudi are currently unaccounted for at the port of Colombo, said P. Giant Thomas, vice president of the Tuticorine Ship Agents Association. He said the situation could worsen the shortage of containers and affect the rotation of boxes between India and Sri Lanka. .

In a recent announcement by the President of the Sri Lankan Ports Authority, the Minister of Ports and Maritime Transport, in consultation with the President, directed the Sri Lankan Ports Authority to review the merits of the suspension by concluding a special agreement with the importers. Arrives in Cargo at SLPA owned terminals (JCT and ECT) and is waiting until January 1, 2022.

The waiver is only valid for containers that have been emptied after January 31, the statement said.

Most of the shipments from southern Indian ports to Sri Lanka are for personal use. However, because of the forks problem, banks cannot issue loans to clear the load. This resulted in congestion at the Colombo terminals. Edwin Samuel also said that this has disrupted container flow between Indian ports and Colombo ports. Founder and CEO. Pearl Transportation Agencies.

J. David Raja, senior vice president of St. John’s, said that the issue of foreign trade in Sri Lanka has caused a crisis in the handling of the port of VCC. In Sri Lanka, three cargo terminals – SLPA-JCT, SAGT and CICT – are not allowed to carry cargo and cargo ships by non-operating cargo carriers. He added that the situation will worsen in the coming days.

He said most of the cargo to the United States and Europe is shipped through the island, adding that the port of Colombo is important for Indian trade.

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