Sri Lanka’s ?? Colombo Port Congestion: The Real Issues & When It Will End

⭕ On a normal day last year, Sri Lanka only received around 1000 import containers. However, at the end of the year and into this January, due to rice imports, seasonal demand, normalization after the crisis this count nearly doubled to 2000.

⭕ The majority of these containers contain food items such as rice, maize, sugar, potatoes, onions. etc.

⭕ All food items require ORA approvals from Other Regulatory Agencies (ORA) such as SLSI, Food Administration, NMRA, Plant & Animal Quarantine, and the Atomic Energy Authority. 60% of total containers need one or more ORA approvals before being fully cleared by Customs.

⭕ Customs does not refer all these containers to the yard for sampling. Instead, they refer 50% of ORA-required containers (meaning 30% of the total) to yards, primarily the RCT yard, for sampling purposes and quality checks to determine if they are fit for consumption.

⭕ The remaining 30% of ORA-required containers are either exempt from any examination or released after scanning, but until the ORA requirement for the consignment is fulfilled, none of the containers in that consignment can be fully released from the port.

⭕ Until December, this was not much of an issue, but with rice imports requiring multiple ORA approvals, the backlog started building up, leading to current prolonged congestion.

Let’s run the numbers:

⭕ From the 30% of total containers sent to yards for ORA approval, that amounts to 600 containers in a 2000-container day. However, the total customs yard capacity is only ~500: Grayline 1 & 2 = 125, RCT = 375

⭕ This automatically creates a backlog, as ORA-required containers fill all available yard space, even before considering the 10% of containers that Customs examines due to revenue and other risks, leading to severe congestion.

⭕ The remaining 600 containers stuck at the port create another issue for terminals, disrupting maritime operations. This was the initial primary reason for the crisis.

⭕ By January 2025, Customs and ORAs agreed to release containers under seal inside the port, pending ORA requirements. (called ORA OUTPANEL) Under this for compliant importers who have yard or warehouse facilities where containers could be stored until ORA approvals were finalized. This helped ease congestion.

Despite popular belief that Customs examines all containers, the reality is:

⭕ Only 20% of containers are examined for Customs purposes.

⭕Only 10% go through detailed examination yards at Grayline 1 and 2.

⭕35% – completely exempt from examination.

⭕20% -released after scanning.

⭕ For the 10% of containers subject to physical examination at Grayline 1 and 2, Customs claims that 60% of these examined containers have serious Customs violations.

⭕ Although Customs cites this figure proudly, the alarmingly high hit rate raises serious concerns. Either Customs should examine more containers, or stricter penalties should be imposed on repeat offenders instead of allowing them to continue operating.

⭕ With the reduction of imports due to Chinese New Year last week, port traffic is expected to drop by approximately 400 containers. This decrease will allow Customs and the ORA to clear the backlog. The congestion should be temporarily cleared by the end of the week.

However, once container volume rises above 1500 again, the congestion will return.

⭕ The ORA issue is at the heart of the problem, but a crisis is an opportunity for many. Many do not want it to end. This includes media outlets, opposition politicians, Customs unions demanding the firing of their DG, drivers and brokers benefiting from nearly a 100% rise in transport charges, and Customs brokers and officials creating separate channels for speedy clearances, to name a few.

Long-Term Solution: A Dedicated Container Yard

⭕Without a proper container yard equipped with adequate examination facilities and centralized ORA departments alongside the Customs Valuation branch—essentially, one integrated facility for all tasks—it will be impossible to permanently resolve this issue. The capacity for container examination yards should have been expanded at least five years ago, but it hasn’t happened due to various reasons. (Kerawalapitiya’s development was delayed until now; Not even sure if this gov would initiate it due to certain administrative issues with the land.)