For the past decade, we have witnessed the recurring discussion of implementing a National Single Window (NSW) under various governments. Often, the topic resurfaces multiple times within the same administration, only to fade away.
The NSW is a system that makes it easier for businesses to handle international trade. Instead of dealing with different government offices separately, traders can submit all the necessary paperwork and information, like customs forms and licences, through one online platform.
This system helps speed up the process by coordinating with various agencies to get everything approved in one place, making importing and exporting goods more efficient and less complicated.
NSW: History repeating?
The 2018 Budget speech announced an allocation of Rs. 500 million to introduce an e-Local Government application system, automated construction permit issuing mechanism, integrated Land Registry (eLR), and 45 digitised land registries, as well as to establish an NSW connecting 31 State agencies with the Customs Department.
Initiated in early 2018, this was to be based on the blueprint provided by the World Bank to the Government. Although it resurfaced a few times, no tangible outcome was seen.
The 2018 performance report of the Ministry of Finance Department of Trade and Investment Policies stated that the NSW and the Trade Information Portal (TIP) were among the key priorities of the Trade Facilitation Agreement (TFA) action plan, but once again, it remained merely an action plan with no portal launched within the stipulated time period.
It should also be noted that the Sri Lanka-Singapore Free Trade Agreement (SLSFTA) required Sri Lanka to maintain a single-window customs system, ensure the efficient clearance of goods, and minimise the documentation necessary for customs clearance.
The Export Development Board’s (EDB) 2018-2022 National Trade Policy document has stated that the fragmented institutional network, costly export procedures, and delays in introducing key solutions (such as a single window or a land bank) are among the constraints that have been impeding export development for decades.
Although a number of initiatives have been proposed for many years, they have never been implemented, according to the document, despite being crucial for export development. The main reason for the delay is the complexity of the institutional landscape as well as differences in approaches and policies among institutions.
In late 2019, it was announced that the Government had committed itself to establishing an NSW to facilitate trade and boost exports by 2030 and this ‘definitive date’ of 31 December 2030, which was confirmed by the Government to the World Trade Organization (WTO), was eight years later than the ‘indicative date’ of 31 December 2022 initially provided by the Government. There were complaints around this time that the date had been arrived at without any consultation from the private sector.
In June 2022, Cabinet approval was granted for the project to be completed in three phases at an estimated cost of $ 15 million, with funding expected from the World Bank and other stakeholders. By this time, the Department of Commerce was no longer handling the project, which had been transferred to the Treasury, and regulatory agencies involved had yet to receive clear instructions on its implementation.
There is even an inactive Government website for the NSW with only three agencies on board, set up during Mahinda Rajapaksa’s most recent tenure as Prime Minister.
NSW plans
The topic has resurfaced once again in 2024 with work on the NSW being kick-started. Ministry of Trade Secretary A.M.P.M.B. Athapaththu stated that the NSW did not come under the purview of the Ministry of Trade but the Department of Trade and Investment Policies of the Ministry of Finance.
“There is representation from the Ministry of Trade in the NSW’s implementation work, but it is not handled by us directly,” he said.
Meanwhile, speaking to The Sunday Morning Business, Department of Trade and Investment Policies Director General K.A. Vimalenthirarajah stated that the NSW was currently being implemented.
“The NSW falls under the Ministry of Finance. We recently had a workshop to discuss the project and we are in the process of establishing the Project Implementation Unit (PIU) for it. We have recruited a project director and are in the process of recruiting an additional 7-10 people. We have conducted interviews and have sent the recommendations for Cabinet approval.”
He added that once approval was granted, most of the newly-recruited individuals would require about a month to report to duty. Therefore, the PIU is likely to be established by mid-September or by the end of September at the latest. Thereafter, the department would proceed according to plan, Vimalenthirarajah noted.
The recent workshop conducted with financial assistance from the US focused solely on trade-related matters. He noted that the NSW would deal only with trade, while investment would follow a different structure under a new strategic economic transformation framework, which he declined to comment on as the relevant act had been passed, with new agencies for investment and productivity commissions expected to decide on such matters.
“While investors may indirectly benefit from the single window when it comes to importing raw materials and capital goods, it won’t directly streamline the approval process for investments,” he added.
When asked about private sector participation in NSW implementation, he said there was a Trade Facilitation Committee, chaired by the secretary to the Treasury, in which the private sector was involved.
Vimalenthirarajah refused to provide further information such as the deadline and cost without approval from the Ministry of Finance.
Work to be done
Speaking to The Sunday Morning Business, National Chamber of Exporters (NCE) Secretary General Shiham Marikar stated that the NSW had been initiated, adding that while they had started working towards it, the actual window itself was yet to be implemented.
“There are about 47 agencies that need to come on board, but so far, only four or five have joined. The exact details will have to be verified. Last year’s budget proposals allocated around Rs. 10 million to kickstart this project. Since then, we’ve had a few meetings with the Ministry of Finance, headed by the Treasury Secretary. A team has been appointed, which also had to recruit some external personnel to fill key positions and get this initiative moving, as there’s a lot of planning and work involved.”
Marikar stated that there was a need to identify which agencies were yet to join and understand the reasons for their hesitation. Some agencies had cited inadequate IT infrastructure, while others had claimed that significant changes were required in order to participate, he said.
“For instance, it’s essential to find out if Customs has come on board, as it is a crucial part of the NSW. If not, we need to understand the reasons for its reluctance.”
Although assisting the NSW is part of Sri Lanka Customs’ Strategic Plan for 2024-2028, it is unknown whether Customs is onboard with the plan as it was unavailable for comment.
“We have had many meetings in the past, but nothing has materialised. While there seems to be a more structured approach this time, with elections looming, uncertainty remains.
“Nevertheless, the chamber continues to lobby for this, regardless of which government is in power, as a single window is something all governments would likely support. The issue is that there’s no pressure from the top, with clear timelines and Key Performance Indicators (KPIs). Although there’s a general timeline suggesting a six-month completion period, I don’t see much progress.”
Marikar stated that the NSW would greatly simplify processes for exporters and those involved in trade. For exporters, it will streamline documentation and approvals, and reduce the time currently spent moving documents between various offices for approval. This system will also significantly reduce corruption, as everything will be handled online. Currently, exporters have to visit multiple offices with their files, leading to opportunities for corruption, which is already a concern.
“Time is another critical factor. For example, horticulture exporters often need to print 100-200 coloured copies of their plants and flowers for approval. We have suggested to the Health Ministry Director General of Health Services, specifically the department handling plant quarantine, to implement a simple online system for this, as it’s a waste of time and paper for exporters. While he responded positively, no action has been taken so far.”
Marikar stated that Sri Lanka required someone to lead this effort with clear timelines, with officers being held accountable for delays. While minor delays can be tolerated, this project has dragged on for years. Although Sri Lanka can see a more positive and structured approach now, exporters still lack confidence due to the lack of visible progress.
“The private sector is involved in the process. A secretariat or forum of some kind has been organised and we’ve attended a few meetings. However, progress remains slow,” he said.
Many of the key State institutions were either unavailable for comment or were hesitant to discuss the topic, or else, confirm whether they were onboard. However, whether the implementation of the NSW will move ahead this time or whether it will be once again swept under the election or post-election rug is yet to be seen.
NSW workshop
Ninety-four key participants recently attended an awareness event organised by the Department of Trade and Investment Policies of the Ministry of Finance, with support from the US Agency for International Development (USAID). The event was a step towards implementing the NSW, an electronic platform that allows traders to submit all necessary import, export, and transit documentation at a single entry point.
This system is part of Sri Lanka’s commitment to the World Trade Organization’s Trade Facilitation Agreement, which the country ratified in 2017. The Cabinet approved the NSW project in 2022.
Finance Ministry Secretary K.M. Mahinda Siriwardana highlighted the importance of the NSW in helping the country recover from its economic crisis by boosting trade competitiveness and supporting export-led growth.
Department of Trade and Investment Policies Director General K.A. Vimalenthirarajah emphasised the need for collaboration between the public and private sectors and development partners to successfully implement the system.
USAID Mission Director for Sri Lanka and the Maldives Gabriel Grau expressed the US’s longstanding commitment to supporting Sri Lanka’s economic stability, noting that the NSW would help reduce trade barriers and promote export growth. USAID has also provided technical assistance to establish a Project Implementation Unit that will lead the project’s implementation.