Sri Lanka 'perfectly placed' as potential logistics base

The island of Sri Lanka is making a pitch to become a low cost logistics option for businesses looking to connect with the Middle East, Africa and South Asia and the Indian sub-continent.

Up to now, those wishing to distribute goods in those markets have probably had to choose between using logistics hubs in Singapore and Dubai.

Sri Lanka is halfway between those two locations, and has the advantage of being much cheaper.

An event organised by the Chamber and the Sri Lanka High Commission in London and the Sri Lanka Export Development Board told delegates that the country was an ideal distribution hub to a number of emerging markets.

As well as low operating costs, Sri Lanka can offer a flexible workforce who are often fluent in English.

The country 's real estate industry is also modern and competitively priced.

Andy Hipgrave, specialist global logistics advisor at the Department of International Trade, said: “It is quite clear that Sri Lanka is perfectly positioned geographically to become a global base for any company with scale.

“The infrastructure is ready made for expansive companies that either buy from or sell to Asia and beyond.

“The 'freezone ' is a perfect example of forward thinking and is a real incentive for cross border companies to consider using the benefits of accessing global markets from such a strategic base. ”

Among those taking part in the event last month was Rohan Masakrala, CEO of Shippers Academy, Colombo, who said: “Sri Lanka has something novel and exciting to offer to the UK international trading community, in comparison to established maritime and logistics fulfilment locations of the world.

“Shipping hubs are key to connectivity, distribution, and cost management to reach new markets.

“Sri Lanka is an island located 27 km away from mainland India, is a gateway to the Indian ocean, linking the east-west main shipping corridor and opening new horizons in supply chain management for international traders and logistics services providers. ”

Another attendee, Dileepa Dissanayake, country manager, APL Logistics, said: “Sri Lanka is well-positioned between India and Bangladesh, two of the fastest growing economies in the South Asia region, and we can see a greater opportunity to facilitate logistics in a regional context.

“Colombo is the key connected port in the region, and is the only port which can accommodate mega vessels. ”