Sri Lankan government prepares nation policy for maritime and logistics sectors to promote ship ownership among Sri Lankans
The new national policy for its maritime and logistics sectors of the Sri Lankan government has reportedly recommended several measures to encourage ship financing such as removing single borrower credit limits.
According to reports, the main aim is to encourage Sri Lankan banks to finance ship acquisitions to promote ship ownership among Sri Lankans and create an eco-system of ship owners in Sri Lanka.
The final draft of the national shipping policy was presented to Minister of Ports and Shipping and Southern Development Sagala Ratnayaka last month.
Awareness of ship finance will be enhanced to facilitate financing at interest rates equivalent to international rates, the report has stated.
The draft document has recommended the removal of the single-borrower credit limit for ship building and purchasing because large investments are needed for ship building and ownership with only a limited number of banks in Sri Lanka involved in the sector.
The shipping policy is reportedly looking at creating recognition among local banks for ship finance by accepting the vessel as collateral.
OSL take:
The Sri Lankan government’s decision to introduce a national policy maritime and logistics sectors would give a further impetus to the target of making Sri Lanka a hub in the Indian Ocean region. The Colombo Port has been recorded a continuous growth in the number containers handled by the port and the performance of the ports located around the country have recorded an overall growth in the past few years. The government is now in the process of developing the Kankasanthurai Port in the North with Indian assistance. Given Sri Lanka’s geographical location in the Indian Ocean, the island nation is an ideal business venue for foreign maritime and logistics companies. Also, the proposed national policy, which also promotes Sri Lankans to own ships would further develop the country’s shipping business. Therefore, Sri Lanka’s ports, maritime and logistics sectors will have many business/investment opportunities.
| Article Code : | VBS/AT/14022019/Z_4 |