Ceasefire holds sway in exports to West Asia
Sri Lanka’s exports are resuming their shipments to the West Asian region as the ceasefire between Iran and Israel was holding after the 12-day war but only time will tell.
With warnings by the US of the possibility of attacks resuming between the two countries, exporters in Sri Lanka say it could take a couple of weeks for things to normalise although shipments are moving ahead.
However, the main concern by tea exporters in Sri Lanka is that local authorities are not releasing the monies due to them following their export of teas to Iran under the tea-for-oil deal between the two countries.
It is learnt that currently with Iran still reeling from the setbacks of the war things have not yet normalised. As a result of this some of the key documents from the National Petroleum Corporation of Iran confirming that the teas shipped to Iran are part of the tea for oil deal have not been received by Colombo.
And in turn, Sri Lankan officials at the Sri Lanka Tea Board (SLTB) are hesitant to release the finances due to the lack of the relevant documents. Exporters opine this is a concern for them as they believe authorities fear retribution if monies are released without holding onto the relevant documents required in this respect.
Shipments to Dubai and Israel have resumed but now the exporters are experiencing delays of about one to 10 days.
In the meantime, shipping agents noted that immediately there is no impact on Sri Lanka from the situation in West Asia.
Moreover, the concerns regarding the possible closure of the Strait of Hormuz would mean ships heading to the Gulf will stop and as a result they will have to drop off the cargo in Salalah or Colombo.
Commenting on reports that the Hambantota Port is likely to gain from these increased vessels calling over at the Colombo Port; It was noted that this may not happen.
Shippers stated that since feeder vessels only call over at the Colombo Port it was likely that any other ships calling over to drop off cargo bound for other destinations may not head to Hambantota Port.
But it is also possible that some lines may carry out a relay operation whereby cargo meant for other ports will be dropped off at Hambantota and picked up by another similar vessel that will then transport it to that particular destination.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!