Sri Lanka’s Colombo transshipment shrink as India imports plunge
ECONOMYNEXT – Container transshipment volumes at Colombo Port in Sri Lanka contracted 2.9 percent in July 2019 from a year earlier to 465,953 twenty foot equivalent units (TEUs), as India’s imports and exports shrank, data show.
Total container volumes in Colombo dropped 2.6 percent in July 2019 from a year earlier to 585,379 TEUs (twenty foot equivalent units).
India’s imports in plunged 10.4 percent in July 2019 from a year earlier to 39.7 billion US dollars. Exports grew 2.25 percent to 25.75 billion US dollars.
In July 2018 India’s imports grew 28.8 percent to 43.7 billion US dollars, Colombo’s transshipment volumes grew 19.2 percent to 480,045 TEUs. In July India’s exports also grew 14.3 percent to 25.7 billion US dollars.
Sri Lanka’s domestic trade volumes also contracted 6.6 percent to 104,436 TEUs in July from a year earlier.
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Both India and Sri Lanka’s banking systems were hit by currency collapse and liquidity shortages in 2019, as central banks of both countries ran identically contradictory money and exchange policies, generating monetary instability.
Both the Reserve Bank of India and the Central Bank of Sri Lanka are gold-taxing agencies, slapping Mercantilist controls to fix monetary policy errors.
India’s non-bank lenders in particular have been badly hit and bad loans, which were already elevated in India are under stress again. (Colombo/Sept24/2019)
Kithmina Hewage- Institute of Policy Studies