💸 Sri Lanka Faces US$ 100 Mn Forex Loss Over Delayed Salt Imports

A one-year delay by the Government in deciding the fate of approximately 50,000 metric tons of imported salt has triggered massive economic damage. The imports were originally authorized under emergency measures in May 2025 to bridge domestic shortages caused by severe rains. • Overall Impact: An estimated foreign exchange loss exceeding US$ 100 Mn. This includes capital already sent overseas, accumulated container detention, shipping line demurrage, port storage, and logistics costs. • The Consignments: Around 52,000 metric tons of salt remain completely idle. This consists of 42,000 metric tons held across 1,500 containers and an additional 10,000 metric tons imported as bulk cargo. • Regulatory Failures: Gazette No. 2437/04 lifted the Import Control Licence (ICL) requirement but failed to set a maximum import ceiling. Importers over-ordered from India and China, while numerous consignments subsequently failed to meet the June 10, 2025 shipping deadline or Sri Lanka Standards Institute (SLSI) iodine specifications. • Quality Deterioration: Because iodized salt has an 18-month shelf life, much of the stranded cargo has now expired, drastically reducing its commercial value and making it unfit for direct human consumption without reprocessing. • Proposed Way Forward: Re-exporting is no longer commercially viable. Experts recommend releasing the cargo to National Salt Limited for technical evaluation, reprocessing, and controlled industrial utilization to salvage remaining economic value.