Logistics

X-Press Pearl – Sri Lanka’s shipping agents group explains background on dangerous cargo

Tuesday June 29, 2021 3:35 pm

ECONOMYNEXT – Ceylon Association of Shipping Agents, which represents Sri Lanka agents of shipping lines agents have explained some of the background regarding the carriage of dangerous cargo and shipping procedures in the wake of the X-Press Pearl maritime disaster.

Subject to the correct declaration being made – which is the responsibility of the exporter has to be stowed in a prescribed manner the Chief Officer of a ship has to ensure that they are properly stowed and separated from other dangerous goods.

Goods are stowed according International Maritime Organization’s rules of for the stowage and carriage of dangerous cargo (IMDG). In order to ensure the safety of the ship and crew it is in the interest of the shipping company to ensure that harardous material are stowed safely.

There are also a lot of unanswered questions at this time.

There has been no formal statement from Sri Lanka authorities that all cargo had in fact been carried in full compliance of the rules or that it had not been done.

At this time it is also not clear why the ship did not return to the loading port to offload a leaking acid container when it Port Hamad refused to offload the acid container or why priority berthing was not requested in Colombo.

The vessel’s Captain had told Sri Lanka authorities that he was acting under company instructions according to reports.

It is not fully established that the acid container was responsible for the fire which occurred in No 02 hold of the ship. Sri Lanka Port official said a survey will have to be done of the wreck, which however has since sunk.

The ship was also carrying over 800 tonnes of sodium hydroxide, a corrosive alkali which can react with acid, releasing heat and can also release heat when moist, among other dangerous goods, including fertilizer. All of which were declared.

Reproduced here is the statement from CASA, which perhaps has been the most influential body in shaping Sri Lanka’s shipping policies as they now exist.

MV. Xpress Pearl – a wakeup call to the maritime industry

In the wake of the MV. Xpress pearl disaster, much attention has been drawn to the shipping agent and the role played by the agent in handling Dangerous Cargo (DG Cargo) and also incidents related to damages and handling of such instances.

Role of the Agent

Every ship that has called Sri Lanka has had a Shipping Agent who is considered the long arm of the Principal who coordinates and arranges all services connected to a vessel’s call in Sri Lanka to the entire satisfaction of the Principal, their Customers and the service providers to the ship in full compliance of all laws and regulations of the Government of Sri Lanka.

As per the law in Sri Lanka, Shipping Agents are regulated by the Director General of Merchant Shipping ( DGMS ) – Ministry of Ports and Shipping.

Any company operating as a shipping agent should obtain a license from the Director General of Merchant Shipping (DGMS) under the Licensing of Shipping Agents Act No.10 of 1972. This license has to be renewed annually.

Obtaining a shipping agents license involves stringent requirements enforced by the DGMS and operational compliances with Sri Lanka Customs and Sri Lanka Ports Authority.

All dangerous cargo loaded and unloaded from vessels are declared to the Sri Lanka Ports Authority as per the DG cargo procedure of each shipping line. Strict compliances are religiously met by the Shipping Lines and their agents as required by the International Maritime Dangerous Goods (IMDG ) Code.

Relevant personnel in Principals’ offices, Agents’ offices, on board ships and in Ports of Sri Lanka and the world over are trained and updated in these compliances and practices to ensure overall safety at every level of transportation.

The procedures adopted by the Agents and the Shipping Lines when accepting Hazardous Cargo requires that when a booking inquiry is received from the shipper (exporter), full details of the Hazardous cargo including the Material Safety Data Sheet (MSDS), a document that contains information on the potential hazards (health, fire, reactivity and environmental) and how to work safely with the chemical product is received from the shipper.

This information is dispatched to the Hazardous Cargo Desk of the Shipping Line for approval. If the vessel is operated by the line accepting the Hazardous cargo, then the Hazardous Cargo Desk will accept or reject the booking.

If the vessel operator is another line the Hazardous Cargo request is submitted to the DG desk of the vessel operator. Based on their acceptance the approval will be communicated to the load port agent and cargo accepted.

The Load Port agents will notify the Authorities at the Load Port as well as the Master of the vessel to ensure proper acceptance and stowage of the cargo firstly at the Load Port and secondly onboard the vessel.

Hazardous cargo is stowed onboard the vessel at a pre-assigned stowage location. Once the cargo is loaded on board, the information of all hazardous cargo is transmitted to the ports of call of the vessels, the transshipment port as well as the discharge ports so that the authorities are kept informed of hazardous cargo onboard the vessel.

When vessels call at the Port of Colombo, a hazardous cargo declaration is submitted to the Safety Section of the Sri Lanka Ports Authority listing out all the hazardous cargo that is being discharged, transshipped or retained onboard. For certain categories of cargo Ministry of Defense approval too needs to be obtained.

The Safety sector of the SLPA will accept such declarations, scrutinize same and permit the vessel to enter the Port of Colombo to discharge any Hazardous cargo if it is destined for Colombo or be transshipped at Colombo or for the hazardous cargo to remain onboard if it is intransit.

If a Hazardous cargo declaration is not provided, the vessel is not permitted to enter the port.

All this is coordinated by the shipping agent, based on the information / declarations he has received from the Port of Loading, Principals or the Master.

Incident

The recent incident of MV. Xpress Pearl is but an extremely rare and unfortunate case which has had an adverse impact on the environment, the Port of Colombo, livelihood of the fishing community and the affected coastal belt while dentingour image in shipping circles.

MV.Xpress Pearl was on a scheduled port call to Colombo during which this unfortunate fire erupted. It is in stakeholders interestnot to allow a ship to be destroyed and cause damage to the environment as such action would have adverse effects on the lives of the fishing community,hospitality industry and all Sri Lankans in general with long term and far reaching consequences.

Dousing the fire and ensuring safety of the crew was therefore the main objective of all authorities concerned.It is, therefore, important not to jump to conclusions, condemn and insinuate fault or lapses on any ones part until all sides have been listened to.

Handling leaking containers, damaged DG containers and vessels having fires onboard is nothing new in the Port of Colombo. There have been numerous instances where such issues have been handled by the Sri Lanka Ports Authority and the Container Terminals in close cooperation with the agents.

One of the most recent cases of fire on board a vessel which was handled successfully was the MSC Daniella a 14000 TEU vessel where Sri Lanka received commendation for handling the vessel.

Sri Lanka as a Maritime Hub

Over 90% of global trade is carried by ships and many container ships carry DG cargo in compliance with the IMDG code as stated above. Thousands of tons of Dangerous and Hazardous cargo are carried by ships the world over.

The largest of ships in the world call Colombo with as much as 20,000 TEUs on board the larger vessels. Several hundreds would contain Dangerous and Hazardous cargo.Sri Lanka has handled over 250,000 vessels during the period 2000 – 2020 and has been ranked as the world’s No.1 container growth port among the top 30 container ports in 2018 by Alphaliner.

Any maritime hub has to have the capability of handling DG cargo and even reworking such containers when required. Port of Colombo has a positive reputation as a port which can handle such damaged DG containers and have received commendations in the past.

If Sri Lanka aspires to be a maritime hub and capitalize on its strategic location advantage we should offer these services to all shipping lines calling Colombo. Our Southern coastal belt sees over half of the world’s crude oil tankers sail by, yet we are still not tasked with meeting severe catastrophes.

Need of the hour

There’s an immediate need to improve the emergency response handling in case of a vessel in such casesof vessels in distress. Sri Lanka needs to invest in more resources and international experts to be on call for such emergencies.

CASA representatives, inter alia, stakeholders have worked with the Ports and Shipping Ministry in the past in developing a comprehensive maritime policy for Sri Lanka. Some of the way forward action plans covered Ports and related infrastructure, development of maritime related services, ships, ship owning, ship and crew management, shipping and NVOCC agency, coastal shipping, development of logistics and intermodal infrastructure, harmonizing of regulatory framework, maritime safety, security, marine pollution prevention, maritime training, promotion of small and medium scale enterprises in maritime and logistics.

We believe that this exercise which was the dedicated and committed effort of all relevant stakeholders must be urgently reviewed and enacted together with fast tracking ratifying of international conventions related to maritime which come under the Director General of Merchant Shipping.

We observe opportunists with little or no knowledge and experience of shipping are endeavoring to place the blame on the shipping agents for this debacle and are calling for changes in agency ownership structure which has totally no relevance.Everyone will have 20/20 vision in hindsight and all are experts after a catastrophe.

CASA

The Ceylon Association of Shipping Agents, formerly known as the Ceylon Association of Ships’ Agents, Ceylon Association of Steamer Agents, and the Ceylon Shipping Committee, in that order, was established in 1944.

Membership now stands at 139 Company Members and 3 Associate Members.

Markets

Sri Lanka stocks close up 1.37-pct, banks lead turnover

Monday November 9, 2026 3:29 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

Information Technology

Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

Monday November 9, 2026 3:12 pm

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

Stocks & Companies

Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

Monday November 9, 2026 1:16 pm

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

Markets

CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

Monday November 9, 2026 11:50 am

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)

X-Press Pearl – Sri Lanka’s shipping agents group explains background on dangerous cargo

Sri Lanka stocks close up 1.37-pct, banks lead turnover

Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

Sri Lanka stocks trend up; ASPI gains 0.78-pct

Sri Lanka rupee at 332.54/58 to US dollar spot, bond yields steady