🚢 US-Sri Lanka Maritime Corridor Demands Urgent Structural Reforms

• Strategic Trade Footprint: US FMC Chairman Laura DiBella highlighted Colombo as a key maritime & transshipment node handling ~500,000 US-bound/originating containers worth ~$30 Bn. • Capacity vs Governance: Colombo’s ECT and CWIT expansions aim to double handling capacity by late 2027; however, structural modernization is required to capture market share against deep-water competition like India’s Vizhinjam. • Key Institutional Reform Priorities: • Independent Regulatory Body: Establish a Maritime Regulatory Commission to decouple port operations from sector regulation and eliminate SLPA's hybrid operator-regulator conflict. • Landlord Port Model: Transition SLPA into a dedicated landlord entity, concessioning terminal operations to private capital via BOT agreements. • High-Value Logistics Pivot: Shift focus from low-margin transshipment to paperless Multi-Country Consolidation (MCC) under Commercial Hub regulations. • Digital Modernization: Fully operationalize a Port Community System (PCS) to integrate Customs, terminals, and border agencies.