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SL positioned along key Indian Ocean trade corridor

Sri Lanka is positioned along one of the Indian Ocean’s busiest trade corridors, with Colombo Port, Hambantota Port, Mattala Airport and key export processing zones designated as free ports and bonded areas under commercial hub regulations, according to a recent social media post by the Sri Lanka Export Development Board (EDB).

According to the EDB, Sri Lanka’s location in the Indian Ocean and its commercial hub regulations provide a framework for using these key facilities as free ports and bonded areas, supporting the movement of goods and commercial activities.

The regulations were introduced to facilitate entrepot trade, offshore business, front-end services, headquarters operations, and logistics services. The regulations also declared free ports and bonded areas, which are legally excluded from Sri Lanka Customs’ territory although they are geographically situated within the country, EDB stated.

The establishment of commercial hubs in Sri Lanka allows global stakeholders to import various permitted raw materials or finished goods through green channels with minimum intervention of Sri Lanka customs, enabling a smooth movement of products ranging from simple storage, and value-added solutions to manage complex supply chain operations at a regional or global scale, EDB stated.

According to the EDB, Colombo and Hambantota ports connect cargo travelling to and from Europe, East and South Asia, the Persian Gulf and East Africa. Sri Lankan ports are also located along trade routes connecting Singapore, Dubai and India. Sri Lankan seaports are also located along major Indian Ocean shipping routes,and in the path of the ‘One Belt One Road’ (OBOR) initiative launched by the China Merchants Group, a state-owned corporation.

Colombo and Hambantota ports have deep-water terminals capable of handling large vessels with capacity exceeding 22,000 twenty-foot equivalent units (TEUs). The EDB highlighted that the Colombo Port is one of the busiest container ports in the region, and the deepest port in South Asia, with the capacity to handle large container vessels, while Hambantota Port is located close to major Indian Ocean shipping lanes.

The commercial hub framework, together with Sri Lanka’s location and port infrastructure, provides facilities for businesses engaged in international trade, logistics, storage and supply-chain operations, according to EDB.