Delay in clearing vehicles: Bad show by SL Customs

According to a recent news report, Sri Lanka Customs took nearly one year to release 166 vehicles imported by John Keells Holdings (JKH), one of the country’s most reputable conglomerates. This unusually prolonged delay raises several serious concerns that merit public clarification:

1. Excessive and avoidable demurrage costs

   Prolonged clearance inevitably results in substantial demurrage and storage charges. Such unwarranted costs ultimately burden the importer and are likely to be passed on to consumers, undermining price fairness.

2. Inefficient use of warehouse and port space

   Retaining a large consignment for nearly a year unnecessarily occupies valuable warehouse and port capacity, affecting overall logistics efficiency and congestion management.

3. Impact on foreign supplier settlements

   Delays of this magnitude may disrupt timely payments to overseas suppliers—particularly the Chinese exporter in this case—potentially leading to penalty charges and reputational implications for Sri Lankan importers.

4. Unnecessary resort to litigation

   The fact that the importer had to seek judicial intervention suggests a breakdown in administrative resolution mechanisms. Litigation is costly, time-consuming, and avoidable if institutional coordination functions effectively.

5. Lack of inter-agency coordination

Could this matter not have been resolved expeditiously through a coordinated discussion involving Sri Lanka Customs, the Department of Motor Traffic, the Department of Inland Revenue, and the Department of Import and Export Control? The absence of such coordination is deeply concerning.

6. Preventing future Recurrences

   What concrete measures will be implemented to ensure that similar delays do not recur in future imports—whether by JKH or any other importer—so as to safeguard efficiency, transparency, and investor confidence?

These questions are raised in the public interest. Over to the powers that be for a clear and accountable response.

Mohamed Zahran

Colombo