⚓ Sri Lanka Maritime Sector Debates Foreign Ownership Rules

• Industry Overview: The maritime and logistics sector currently permits 100% foreign equity across key infrastructure areas—including port/terminal development, warehousing, bunkering, and marine engineering—supported by major investments like SAGT, CICT, HIP, and CWIT. • Key Debate: Discussions center on lifting the 40% foreign equity cap for shipping agency and freight forwarding services. Industry voices advocate for structured safeguards to prevent mere transfers of ownership without net economic gain. • Economic Context & Dynamics: • Market Disparity: Comparative analysis highlights India's nominal GDP (~US$ 3.96 Tn) versus Sri Lanka's (~US$ 108.8 Bn)—a 36x difference in scale that affects competitive equity dynamics. • Employment & Scale: The broader logistics industry supports roughly 40,000–50,000 direct jobs, with shipping agencies canvassing over 7,300 vessel calls annually. • Strategic Focus: Stakeholders advocate prioritizing new FDI in logistics parks, vessel turnaround productivity, digital customs, and regional transhipment over changing ownership rules in service-based SME segments.