Daily News Blog

Govt. to allocate Rs.2.5bn to address severe congestion at Port of Colombo

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The government is allocating Rs.2.5 billion to address the severe congestion at the Port of Colombo and towards the digitalisation efforts in the logistics sector.

In Budget 2025, President Anura Kumara Dissanayake proposed to allocate Rs.500 million to set up the Kerawalapitiya customs inspection yard and Bloemendhal Logistics Park, in a bid to address the severe congestion at the Port of Colombo.

“The Port of Colombo is currently experiencing severe congestion, as the container volumes have surged significantly, exposing the need for critical development in infrastructure and systems and procedures,” he said.

The proposed Rs.500 million is to support the land acquisition process and initial preparatory work of the Kerawalapitiya customs inspection yard and Bloemendhal Logistics Park.

As a long-term measure to ease the container traffic congestion in and around the Port of Colombo and increase foreign earnings through value addition, he proposed to establish an internal container dry port (ICD) in Veyangoda, as a rail-based Integrated Multimodal Cargo and Logistic Centre.

“We propose to allocate Rs.500 million to review the previous studies, identify an institutional mechanism, land acquisition and initial preparatory work on an ICD in Veyangoda,” he added.

This was originally proposed in an Asian Development Bank-funded study way back in 2012.

Meanwhile, it was also proposed to allocate Rs.500 million to support the initial development of the much-awaited National Single Window System, Truck Appointment System, E-Cargo Tracking System and Port Community System.

Further, the government also proposed to allocate Rs.1 billion to support the initial development and establishment of advanced scanning systems for the Port of Colombo and Bandaranaike International Airport.

“Modernising infrastructure and incorporating cutting-edge technology are crucial for improving cargo movement. The outdated scanning systems are causing delays in the whole supply chain,” Dissanayake pointed out

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