Sri Lanka Needs Independent Maritime Regulator to Attract Investment: US FMC Chief

Sri Lanka should establish an independent maritime regulatory authority to ensure fair competition and attract foreign investment while the country still has an opportunity to strengthen its position as a regional maritime hub, United States Federal Maritime Commission (FMC) Chairperson Laura DiBella said.

She said a dedicated regulator, similar to the FMC, could oversee shipping alliances, prevent anti-competitive practices, discourage excessive freight rates and establish clear rules that would give international investors greater confidence in Sri Lanka’s maritime sector.

“A clear regulatory framework de-risks the market for foreign direct investment. Capital avoids environments with arbitrary constraints or excessive risk,” DiBella said while addressing the Colombo International Maritime and Logistics Conference.

DiBella noted that Colombo has become an important link in US supply chains, handling around 500,000 containers carrying cargo worth approximately US$30 billion.

She said seaports are essential to economic growth but stressed that governments should focus on creating the right environment while allowing private businesses to drive commercial development.

She added that the FMC is willing to support Sri Lanka in developing a competitive and efficient regulatory framework that would help keep regional trade routes moving smoothly.

During a panel discussion at the conference, business leaders and regional maritime experts also warned that Sri Lanka needs to move beyond its traditional transshipment role and address domestic logistical bottlenecks if Colombo is to maintain its competitive position.

Ashraf Omar, Chief Executive Officer of Brandix Sri Lanka, said export manufacturing is increasingly moving from forecast-based production to faster, demand-driven supply chains.

He noted that delays in getting finished products to international markets can quickly reduce their value, particularly in the fashion industry.

Omar said manufacturers could reduce production times by several days, only for finished goods to remain at ports or with freight forwarders for much longer periods.

He called for immediate investment in digital systems that can reduce cargo transfer times and allow goods to move more directly from factories to ships, rather than relying on long-term development plans alone.

René Piil Pedersen, Managing Director of A. P. Moller–Maersk Singapore, said emerging maritime hubs can create greater economic value when port terminals are integrated with warehouses, free-trade zones and other logistics facilities.

Using Singapore as an example, Pedersen explained that companies can bring products into its free-trade zones, carry out market-specific processing or labelling in warehouses and then distribute them to other regional markets.

He said Sri Lanka could develop similar value-added logistics activities by making use of its strategic location along major international shipping routes.

Pedersen also urged Colombo to prepare infrastructure capable of supplying cleaner alternative marine fuels, including green methanol, to international shipping fleets passing through the region.

Concluding the panel discussion, FMC Commissioner Robert Harvey called on Sri Lanka to approach its logistics sector as a competitive commercial industry, stressing that transparent and predictable regulations would be essential to attracting private investment and advanced technology.