by Kalinga Weerakkody
The revised war risk premium which was reduced by 33% by Lloyd’s Underwriters Association was due to come into effect from on Monday, Sri Lanka Ports Authority (SLPA) sources said.

The decision was taken after a meeting between the Sri Lankan High Commissioner to Britain Mangala Moonesinghe and officials of Lloyd’s last Wednesday.

Following the decision Minister of Ports, Shipping and Fisheries Mahinda Rajapakse expressed his gratitude to Lloyod’s, the Sri Lankan High Commissioner in Britain and members of the Trident Maritime Security Audit who revived the security situation in Sri Lanka’s only international airport at Katunayake, Colombo Port and the Galle and Trinco harbours.

A 16 member committee was appointed by Lloyd’s of London to determine the security measures necessary to prevent a repetition of attacks carried out by the LTTE such as the Katunayake attack in July this year. The team led by Colonel Timothy Spyser visited the island recently and submitted its report to Lloyod’s suggesting measures that should be taken in the aftermath of the Katunayake attack, the worst attack carried out by the LTTE so far.

An additional premium was levied by the London based War Risk Rating Committee (WRRC) in the aftermath of the attack, which crippled the Sri Lankan economy further. Following the attack many shipping lines withdrew operations from Colombo Port. Lloyod’s Underwriters Association reduced the war risk premium applicable to vessels calling at Colombo harbour from the present 0.075% to 0.050 percent, a difference of 33%.