The Sri Lanka Ports Authority (SLPA) has extended the demurrage-free period in the Colombo Port till 7 May as a relief measure to the import trade and shipping community.
“The Government has been very generous towards the shipping industry. To ensure continuous operations the SLPA extended the demurrage free from 14 April to 7 May,” SLPA Chairman Major General Daya Ratnayake told Daily FT.
Demurrage-free extension was given as a relief measure to companies due to the COVID-19 pandemic.
Previously, demurrage charges were waived-off treating as holidays in the system from 14 March to 13 April. However, with the port reaching almost 90% of the storage capacity, he said that they had no plans of extending the concession to all three terminals post 7 May.
“Given this difficult period we extended our fullest cooperation to all the stakeholders. For almost close to two months we have only charged the basic rent which amounts to a very small sum. Going forward from 8 May, there is no room for us to provide such concessions and the penal duties will be charged,” he added.
The full capacity of the Colombo Port can accommodate a total of 137,000 TEUs from all three terminals at a time.
The economic cost of the decision is yet to be assessed, Ratnayake said.
(FT)