Sri Lanka customs recorded a collection of more than 24 billion LKR within a day marking the highest revenue earned in a day in its history starting in 1806 (Ref. SL Customs). Sri Lankan ports from Delft Island to ‘Godawaya’ have been collecting revenue for centuries from international trading with Romans, Persians, Indians, Chinese & even Tunisians. Since 1505 revenue from the ports may have reduced as the Portuguese, Dutch & the British took control of Sri Lankan ports.

Apart from the ports, tourist arrivals would also bring in forex for national development. However, it is necessary for Sri Lankans to; think like tourists to attract more tourists. Tourism sector trade unions who protested against late Renton De Alwis (former Chair, Sri Lanka tourism) who proposed to build better toilets in tourist locations calling him ‘Toilet Chairman’ may think new in the new era.

Free visa to China

One of the recent developments Sri Lankans may learn is the free visa policy of China. As per Chinese National Immigration Administration, foreigners have made 7.24 million visits to China during Q3 of 2025 using the free visa facility (72% of all foreign national entries). It is an approx 48% increase YoY. Foreigners from 76 countries can now enter China using the unilateral & mutual free visa policies. In addition citizens from 55 countries can enter & stay for 10 days in China using a transit visa before travelling to their destination. Sri Lankans must remember that tourists will come only if it’s a friendly, safe & an economical place.

The need for attractive ports.

Some of the largest & efficient free trade zones of the world operate with free ports. Best examples are: Jebel Ali in Dubai, Jurong Island & Changi in Singapore, Shanghai in China, Busan in South Korea & Panama near the Panama Canal (which plays a key role in Central American trade). It is known that investors review clear laws & tax agreements, analyze target export markets, consider infrastructure & transportation networks, & evaluate political & economic risks of the host country before investing in a country (www.carnegieendowment.org). Sri Lanka will have to work hard to attract the world to its ports as;

1.      It may be remembered as an anti investor location with destructive trade union actions.

2.      There will be intense competition among Free Trade Zones & Free Ports in the Indian Ocean rim (irslogistics.com).

However, internal conflicts arising when granting more freedom to port practices etc. may not be tough as in the past as the population is seasoned & the majority decided to change the setup in 2024. Still conflict provocative elements from within (probably ignited by external competitors) may rise & Sri Lankans should be more cautious.

The Hainan Free Port

Hainan, famous for its ocean front ‘Bodhisattva’ statue (taller than statue of liberty NY) is a ‘Theravada Buddhist’ island located in Southern China. It’s being developed as a Free Trade Port & is an example Sri Lankans may study. The Hainan Free Trade Port will officially launch its special customs operations on December 18^th 2025. It will be a milestone in China's opening up process. Investors believe that; zero tariffs, low tax rates, & simplified tax systems have helped cut operating costs. The list of zero tariff goods are expected grow to approx. 6600 items basically covering all production equipment & raw materials etc. Analysts believe that it’s a big saving for importing companies.

Approx. 1100 industries from biopharmaceuticals to offshore wind etc. are eligible for a preferential 15% corporate income tax rate. As per provincial statistics more than 1300 foreign investors have registered during Q1 & Q2 of 2025. Hainan which boasts for a rich archaeological heritage, flora & fauna similar to Sri Lanka is expected to play a much larger role shaping global trade rules amid challenges posed by anti China elements (Ref. Media).

Views expressed are personal/ Picture source www