Sri Lanka holds an important strategic geographical advantage as the country is right at the center of the maritime silk route connecting the East and West through the Indian Ocean. Expertise says that Sri Lanka can reap the best advantage of this position by developing maritime and aviation sectors and improving infrastructure facilities while enhancing the knowledge and skills of Sri Lankans. That’ll help Sri Lanka to become Center of Logistics Provider in Indian Ocean. But unfortunately Sri Lanka is currently standing on a very poor position in Logistics field comparing to other countries. According to the World Bank’s ‘Logistics Performance Index’ (LPI), Sri Lanka was ranked 137th out of 154 countries in 2009. The LPI is composed of indicators
According to the Logistics Performance Index’ LPI, Sri Lanka’s performance is particularly weak in clearance by border control agencies (particularly customs), logistical competence and ability to track and trace consignments. There has been slow progress in implementing customs reform. Sri Lanka has made less progress than other countries in South Asia, such as Bangladesh and India. There is a strong case for attaching high priority to customs reform, including full use of the ASYCUDA system and development of a computerized system of risk management. Lack of progress in this area place our exporters in a disadvantageous position from competing in time-sensitive markets, thereby undermining the growth and employment prospects of the
The railway sector accounts for only about one percent of freight movements and is characterized by a large cost structure.
Noting that the Government has an important role to play in developing that soft infrastructure, he however asserted that it was the private sector that should drives the process and flag to the Government the priorities for action.
Infrastructure must be developed at the lowest cost to the highest benefit. Unfortunately, in Sri Lanka trend in infrastructure planning is just the opposite. Sri Lanka need to change this trend from fancy projects that have big price tags. This requires study and that is why we need to question any Government on any infrastructure project, because we finally pay for it.

1. Investment in physical infrastructure that has taken place is valuable for the logistics industry in Sri Lanka, Once the Deputy Minister of State Enterprise Development said that was not sufficient. “To achieve a world-class and efficient logistics system and to compete on a global scale, it is also important to develop the soft infrastructure. That is, we need to invest more in human resources, technology, and the systems that drive the success of logistics.”
“For instance,

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