Global shipping has the potential to boost SL’s economy in 2026
Global shipping has the potential to significantly boost Sri Lanka’s economy in 2026. The growth can be achieved through increased transhipment, notably Sri Lanka is the ninth best connectivity among the rest. The country’s location on major shipping routes and its new trade agreements are a key for this potential, says Nilud Fernando, a professional in international shipping and logistics.
Mr. Fernando told The Sunday Times Business by leveraging its position Sri Lanka can attract more foreign investment in ports and logistics, leading to job creation and a substantial multiplier effect on the economy.
“It is encouraging to see the number of ships calls and transhipment volumes are greater in September 2025 compared to September 2024. Sri Lanka should aim at retaining these developments by addressing hurdles in port operations namely congestion and inter terminal transfers which invites less productivities of ships.”
Sri Lanka’s location along major shipping lanes positions it as a prime hub for transshipment. This can significantly increase its role in global trade, leading to more business for its ports. Furthermore, Sri Lanka can expand beyond its traditional role as a transshipment hub by developing other maritime sectors like marine and offshore services, boat building, and nautical tourism. This diversification will strengthen the overall maritime economy, stated Mr. Fernando.
He mentioned that inward volumes have increased between the corresponding years. This growth requires attention as it results in a deterioration of foreign exchange. Alternatively, Sri Lanka should in the long term venture into production plants through local resources. The export basket is edging upwards despite all odds faced by this industry. “As Sri Lanka is known as a resourceful country, every effort should be invested in developing and looking for new markets and products in the global market. North Africa has been identified as an emerging region for potential opportunities. A new UK trade rule, to come into effect in 2026, will allow Sri Lankan apparel manufacturers to source materials from a wider range of countries while maintaining tariff-free access to the UK market. Sri Lanka needs to remain adaptable to global trade shifts and potential shocks, such as tariffs, to ensure its economic recovery,” he noted.
Malaysia, Thailand and Cambodia have already embarked on zero per cent tariff on selected products such as aerospace equipment, pharmaceuticals, palm oil, cocoa, rubber, energy and agri-products. “Sri Lanka should follow suit to reap benefits by falling in line to zero per cent tariff based on selected products. Sri Lanka’s ability to capitalise on these opportunities depends on creating and maintaining a business-friendly and liberalised economy, with stable and supportive policies for investors,” stressed Mr. Fernando.
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