05-10-2021
The continuation of imbalances within the global shipping industry due to the pandemic as well as significant mismatches in demand and supply of capacity have led to countries recording high freight costs, stated incoming Sri Lanka Logistics and Freight Forwarders’ Association (SLFFA) Chairman Dinesh Sri Chandrasekara. He made this remark during a speech at the 40th Annual General Meeting (AGM) of the SLFFA on 24 September 2021 while celebrating its Ruby Anniversary. He also explained that working capital constraints have weighed down on the freight industry along with the prevailing foreign exchange crisis in the country, which has further impeded their business prospects. Further, Chandrasekara said: “The liquidity crunches across all industries spill over to freight forwarders and though this problem has been in existence for a while, at present it looms darker than ever before,” sharing that the financial uncertainty that has formed due to the pandemic has worsened along with the liquidity changes. Thus, in order to mitigate the risks that are being faced by the freight owners to which freight forwarders are exposed and in order to provide clear information on the creditworthiness of those they deal with, SLFFA is working with a software developer to modernise the debtor database. He added that focusing on the nation’s aspirations of forming a regional hub for trade and commerce, however, would also contribute in strengthening the industry due to the strategic location of the island, while pointing out that the urgency to achieve this goal is “very real” with the rapid development of ports in South India, so that Sri Lanka could emerge as a world-class hub next to Singapore and Dubai. Emphasising the urgency behind making Sri Lanka a world-class hub, Chandrasekara noted: “As per the World Bank Logistics Performance Index, Sri Lanka is ranked 94th out of 160 countries. This is despite the Port of Colombo ranking 23rd amongst the busiest ports and 15th amongst the best connected ports in the world.” Marking four decades of service in the logistics industry, the SLFFA AGM is also recorded in history, becoming the first to be held on a virtual audio-visual platform with the participation of over 130 members and invitees along with the Executive Committee of the Association. An election was held for a position in the Executive Committee, using an electronic voting platform appointing Dinesh Sri Chandrasekara as the Chairman for 2021/2022, while Channa Gunawardena and Andre Fernando were appointed as Vice Chairman and Treasurer, respectively.