India relaxes maritime trade norms with Sri Lanka
New Indian Express: India’s Directorate General of Shipping, in a circular dated 19 May, relaxed foul weather norms for the operation of Mechanised Sailing Vessels (MSV), or “thonies”, between Thoothukudi and Sri Lanka, which would allow trade operations throughout the year.
Operators say this has come as a shot in the arm for maritime trade between the two countries. Hitherto, the Mercantile Marine Department (MMD) allowed MSVs to set sail only between September and April, which is considered a fair-weather period.
The period from May to August is considered a foul weather period and MSVs remain moored in harbour.
Mechanised sailing vessel operators hope the development will help them reclaim trade with Sri Lanka, which they lost in 2008 due to multiple factors, including the war between LTTE and Lankan military, and severe competition from other operators.
“Except for a few MSVs that supplied essentials during emergencies, none had transported essential goods to Sri Lanka after 2008,” said Coastal Mechanised Sail Vessel Owners’ Association Secretary Lasington Fernando.
Even though trade was permitted during fair weather season, Sri Lankan traders did not engage MSVs after they found other means of transport during foul weather season. He said that lifting foul weather restrictions gives them a chance to reclaim the market.
“The freight charges are a bit high for MSVs, but the cargo will be delivered in 24 hours, whereas ships take seven days as the goods are stuffed in containers and pass through container freight stations”, said S. Antony Michael Kishore, who has been in the trade for 35 years.
Lasington said a delegation of MSV operators have planned to meet Sri Lankan traders and merchants, to solicit support.
“Earlier, MSVs used to ferry iron scrap, cardboard and paper while returning from Sri Lanka. But these have been banned after the country established reprocessing plants,” said Kishore.
The Thoothukudi old harbour, also referred to as VOC port Zone B, can house nearly 25 MSVs, each with the capacity to carry 250-400 tonnes of cargo. Currently, they are ferrying goods to Maldives and to some Indian states including Lakshadweep islands.
Over 500 varieties of goods including onion, garlic, tamarind, turmeric, potato, salt, medicines, herbal medicines and others are exported via MSVs to nearby islands.
OSL take:
Sri Lanka and India enjoy strong business, trade and tourism ties apart from the historical ties enjoyed by the two countries. The two countries also have an operational free trade agreement (FTA) that would be further expanded once the proposed Economic and Technological Comprehensive Agreement (ETCA) between Sri Lanka and India comes into effect. The trade and business ties are evident with the large number of Indian businesses operating in Sri Lanka and vice versa. The growth and profits recorded by Indian businesses operating in Sri Lanka indicate the increasing business potential in the country and the improving ease of doing business environment in Sri Lanka. With Sri Lanka’s economy on a growth path while becoming an emerging business destination in the region, has opened up a host of business/investment opportunities in Sri Lanka. Indian businesses/investors could therefore explore these new opportunities in Sri Lanka that could present lucrative ventures. Also, other foreign businesses/investors interested in doing business with India could look at forming bases in Sri Lanka to engage with India and other countries in the region using the preferential treatment enjoyed by Sri Lanka with these countries.
| Article Code : | VBS/AT/20250526/Z_2 |