Sri Lanka should immediately formulate a marketing strategy to promote Sri Lanka’s port services especially in ship-repairs despite the slump experienced by the global shipping industry while the industry should expedite efforts to remove or reduce the war-risk tag stamped by Lloyds Register of London.

"Now that the war is over Sri Lanka’s number one priority should be to promote the country and the industry should lead the effort to have the war-risk premium on vessels calling in on Colombo reduced or removed," said Kiran Atapattu, Chairman, Colombo Engineering Enterprises, a company specializing in ship repairs.

Dr. P. Bandu Wickrama, Chairman, Sri Lanka Ports Authority, said that informal preliminary discussions have taken place with Lloyds and officials from London would be invited to Colombo soon.

Atapattu told the Island Financial Review that Sri Lanka could establish it self as a hub for ship repairs and had the potential to attract more shipping lines to Colombo despite the slump the global shipping industry is experiencing because of the economic crisis.

"Repairing ships is big business and Sri Lanka can easily establish itself as a hub because of the country’s strategic location. Singapore has no natural resources but it is what it is today because the country invested heavily to develop its port and port services," he said.

Atapattu said if Colombo aspires to be a hub port it, ship repairing services must be given much more encouragement, because it is an integral part of any hub port.

The global economic crisis has greatly reduced trade and shipping lines have been compelled to slash freight rates while many vessels are being laid-up in harbours around the world waiting for better times. Of the vessels plying the world’s trade across the oceans, ship -repairs is one cost that cannot be avoided.

"If a vessel requires repairs there is no choice but spend and carry out the repairs, it cannot be deferred to another time because safety standards are stringent, and the threat to life and cargo can never be overlooked," Atapattu said.

"This is why Sri Lanka should really push to promote Sri Lanka as a destination for ship-repairs. What many people fail to realize is that repairing ships is an export of services and it brings in huge foreign currency earnings," he said.

Because ship-repairing services are so crucial to shipping lines, Atapattu said Sri Lanka can offer its services at world prices, which means price competition would not really come into the picture.

"For example, Colombo Engineering has priced its services on par with New York and our employees earn as much as their counterparts in major ports of the world," he said.

Attracting ship repairs will also be boost to other related economic activities.

"When a ship is undergoing repairs, they need to stock up on supplies. Traders providing food usually end up selling what would have taken them a month to sell in a single day. We sell our water too. The leisure industry also gets business when crew check into hotels and resorts for the duration of the repair," Atapattu said.

The country is in the process of formulating yet another National Shipping Policy which will look into every aspect of the industry.

However, some industry sources say a marketing plan to promote Sri Lanka as destination is not yet been included.

"Now that the war is over now is the best time to promote the country and its port services and this is where the industry has to take the lead," Atapattu believes.

Sri Lanka also does not have a clear education policy to mould marine engineers and skilled workers for the industry and must be addressed if Sri Lanka is to establish itself as a hub for ship-repairs.

Atapattu said his company has already earmarked a plot of land in Hambantota.

"We are already talking to our investors about setting up operations in the Hambantota Port. We have already begun to train about 200 youth from the area here in Colombo," he said.