Sri Lanka’s shipping and logistics sector is moving beyond traditional port and maritime operations, with a growing focus on demand-chain management and integrated supply chain solutions, according to Sri Lanka Ports Authority (SLPA) Chairman Dr. Parakrama Dissanayake.
Speaking at the 9th Annual General Meeting of the Sri Lanka Association of NVOCC Agents (SLANA) in Colombo, Dissanayake highlighted the growing importance of the Port of Colombo, which has secured a place among the world’s top 20 ports. He noted that the port recorded an impressive 12% growth during the first half of the year.
However, the rapid expansion has also brought increasing pressure on capacity. With demand currently approaching 9 million TEUs against an existing capacity of around 10 million TEUs, the port is operating close to its limits. To address this constraint, the SLPA plans to add a further 1.5 million TEUs of capacity by the end of next year.
Dissanayake also pointed to a significant shift in Sri Lanka’s logistics ambitions, saying the country is looking to move beyond its traditional role as a transshipment hub, which it has maintained for around four decades. Within the coming months, Sri Lanka is expected to launch a new logistics hub within the port, supported by foreign direct investment.
The planned development is expected to be further strengthened by the upcoming elevated highway linking the Port of Colombo with the airport, potentially reducing travel time between the two locations to around 25 minutes. Together, these developments could enhance Sri Lanka’s ability to handle integrated sea-air cargo operations and strengthen its position within regional supply chains.
Dissanayake noted that just 10 major shipping lines currently account for 84.5% of global container capacity, while the five largest carriers control more than 65%. As major shipping companies increasingly expand into end-to-end supply chain services, he said industry service providers can no longer operate simply as intermediaries.
Against this backdrop, SLANA needs to evolve into a supply chain orchestrator capable of supporting a new generation of logistics services, he said.
Dissanayake identified five key pillars for SLANA’s future agenda: resilience, digitalisation, sustainability, human capital and policy advocacy.
On resilience, he stressed the importance of developing flexible routes and alternative logistics options, drawing parallels with Sri Lanka’s tea industry, which continued operations by redirecting cargo through alternative ports during regional disruptions.
Digitalisation will also be critical, with the sector needing to move away from paper-based documentation towards real-time data integration. At the same time, growing global attention on sustainability means logistics providers will increasingly need to address carbon emissions and provide greater transparency on carbon-to-freight performance.