Sri Lanka’s government moves to boost ship registration under Sri Lankan flag
Daily FT: The Cabinet of Ministers has given its green light to call for expressions of interest (EoI) and proposals from both domestic and foreign institutions to boost the registration of merchant vessels under the Sri Lankan flag.
The proposal put forth by Ports Minister Nimal Siripala de Silva, seeks to tap into the potential of commercial ship registration as a lucrative avenue for earning foreign exchange and creating employment opportunities for Sri Lankan seafarers.
Under the approved plan, qualified institutions will be invited to submit their proposals, following which a thorough evaluation process will be conducted by a Technical Evaluation Committee. The most suitable institutions will then be selected based on the recommendations of the Procurement Committee.
“At present, Sri Lanka ranks 88th among 173 countries in terms of ship registration, while Panama remains a leading flag of convenience for ship registration globally. The aim is to enhance our competitiveness in the maritime domain and leverage its strategic position to attract more commercial vessels to register under the Sri Lankan flag,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing held recently.
He also explained the economic benefits associated with promoting ship registration under the Sri Lankan flag, highlighting the potential for generating foreign exchange through vessel registration and renewable fees.
Ship registration has long been recognised as a major source of foreign exchange for Sri Lanka’s economy, with the potential to create direct and indirect employment opportunities.
OSL take:
Sri Lanka’s maritime industry is poised to witness a considerable growth given the latest developments in the ports, shipping and logistics sectors. It is in such a backdrop that Sri Lanka is looking at promoting the registration of more merchant vessels under the Sri Lankan flag. The local authorities have taken many steps to boost the country’s maritime industry given the potential held by Sri Lanka to become a regional hub given its geographical positioning in the Indian Ocean and the strong trade ties enjoyed with other countries. The Sri Lankan government is looking at developing the key ports located around the island ti increase operational capacities while also promoting supplementary businesses like boat building, yacht marinas, etc to attract more businesses to the country. Given Sri Lanka’s steady growth and the potential in the country’s maritime industry, foreign businesses/investors could explore the growing opportunities in the industry and associated sectors.
| Article Code : | VBS/AT/20240408/Z_4 |