Sri Lanka must execute comprehensive regulatory and legal reforms within its logistics sector to attract major foreign direct investment and boost long-term national growth, according to Shippers’ Academy International Founder Rohan Masakorala.
Speaking on Ada Derana’s The Nightly Business Report, Masakorala explained that while domestic ports currently benefit from cargo diversions caused by tensions near the Strait of Hormuz, this sudden boost remains a short-term windfall.
To convert this temporary advantage into lasting economic progress, he urged the country to modernise its legal and operational frameworks, allowing international investors to operate with greater efficiency and transparency.
The logistics expert noted that Sri Lanka functions primarily as a transhipment hub rather than a fully integrated global maritime centre.
He stressed that simply relying on a strategic geographical location is insufficient, pointing out that existing domestic systems have remained unchanged for nearly four decades and require a complete structural overhaul.
Data from the Sri Lanka Export Development Board reveals that the logistics industry currently contributes around 2.5 per cent to the nation's gross domestic product and accounts for 7 per cent of total exports.
The sector provides full-time employment to up to 50,000 people, supporting regional transhipment, entrepot trade, and complex supply chain networks managed by over 500 registered maritime entities.
Masakorala added that building a competitive maritime ecosystem requires establishing dynamic business environments that move beyond state monopolies and outdated regulations.