Naval & Maritime Academy Logistics Conference - 2026181Figure 7: Visualising blockchain applications in military contextsSupplier verification is another important practice. Blockchain can be used to establish trusted digital identities of suppliers, which will mean only approved and legitimate suppliers engage in defence contracts. This is more so in military supply chains, where fake parts or unreliable suppliers may be a deadly risk. It has been found that blockchain enhances provenance tracking and authenticity verification, which is essential in high-security settings (Kostopoulos et al., 2025).Also, smart contracts promote the implementation of contracts based on blockchain. These automation agreements make sure that the contractual requirements, like the schedules of deliveries, quality, and payments, are automated. This saves time on the side of the administration and lessens controversies. According to a study by Kostopoulos et al. (2025), the use of smart contracts can be used to streamline maintenance and logistics processes by automating processes and minimising human error. Altogether, blockchain helps in providing real-time data exchange, increasing the level of coordination between the stakeholders and making defence logistics systems more efficient.3. Benefits and LimitationsA blockchain is associated with some advantages, such as tamper-proof records and increased auditability, that can increase trust and accountability throughout the supply chain. It can deliver real-time and transparent data, which minimises fraud, errors, and inefficiencies (Kumar et al., 2025). Nevertheless, there are still constraints, especially
Naval & Maritime Academy Logistics Conference - 2026182in terms of scalability, since big defence supply chains produce huge amounts of data that may overload blockchain networks. Moreover, uncertainties on regulations and legal issues, as well as interoperability, can be an impediment to widespread adoption (Snigdha and Oyshi, 2025).Role Of Artificial Intelligence (AI) In Supply Chain Integrity Artificial Intelligence (AI) is a revolutionary aspect of enhancing the integrity of demand chains by improving the level of analytical and predictive functions. Predictive analytics is one of its basic functions in which AI analyses big data sets to foresee disruption, demand and operational risks to make decisions proactively. Moreover, the AI improves the detection of fraud through machine learning algorithms that detect anomalies, transactions, and trends linked to fraudulent activities. According to a study by Allaparthi (2024), AI-based fraud detection has a significant effect in terms of accuracy and financial losses in supply chains. Moreover, AI can be used in forecasting demand, which enables organisations to streamline production and logistics planning, resulting in efficiency and waste reduction (Coşkun, 2025).Figure 8: Application areas of artificial intelligence in logistics and supply chainSource: Coşkun, 2025The use of AI in defence logistics is especially important since the process is highly risky. AI is able to detect risks based on real-time and past information to detect vulnerabilities in procurement and logistics networks. It is also used in the analysis of suppliers’ performance, which involves measuring reliability, compliance, and delivery efficiency in order to ensure that only reliable suppliers are used. In addition, AI-based inventory optimisation allows keeping the stock levels optimal, minimising shortages,
Naval & Maritime Academy Logistics Conference - 2026183surplus inventory, and increasing operational preparedness. It has been found that AI enhances supply chain resilience and efficiency as it can provide real-time monitoring and manage the disruption through an adaptive reaction (Hamdaoui and Aknin, 2025).The combination of AI and blockchain also enhances the transparency of supply chains. Whereas blockchain is secure and the storage of data is immutable, AI uses this information to make smart decisions and analyse data intelligently. According to a 2025 study, the combination of these technologies will increase traceability, fraud prevention and general reliability of the system (Han, Huang and Chen, 2025). The combination of them forms a strong, evidence-based ecosystem to facilitate transparent and responsible defence logistics.Integrated Framework: Blockchain With Ai For MalaysiaAn inter-disciplinary approach that combines blockchain and Artificial Intelligence (AI) could be used to develop a holistic solution that will promote the level of transparency and efficiency in the defence supply chain within Malaysia. The blockchain used in this model acts as the base layer, which provides transparency through decentralised immutable records of all procurement and logistics activities. This facilitates the sharing of data securely, traceably and auditing data of various stakeholders. To supplement this, AI can be viewed as the intelligence layer, and it is an analysis of the data stored on blockchains to optimise decision-making, risk prediction, and operational efficiency. According to recent studies by Hossain et al. (2025), this integration is beneficial to improve the performance of procurement by predictive analytics, automation, and real-time monitoring.The Malaysian system architecture would entail a modular digital system that the blockchain would link up the government agencies, contractors, and suppliers, and the AI tools would process the data to identify the risks, make a supplier evaluation, and optimise inventory. Research stresses that interoperability standards and coordinated governance should be implemented to have a successful implementation (Mishra et al., 2024).The anticipated effects of this unified system are less corruption due to tamperproof documents, efficiency due to automation and predictive analysis, and increased trust among the stakeholders. All in all, AI and blockchain combined will result in a robust, transparent, and responsible defence logistics system.Implementation Challenges and Risks The use of blockchain and AI in the defence supply chain of Malaysia is associated with a number of challenges that are critical. The technical barriers also continue to be a major issue, especially in relation to infrastructure preparedness and compatibility between old systems and new digital systems. Implementation of blockchain in the current procurement systems involves huge investments and standardisation (Althabatah et al.,
Naval & Maritime Academy Logistics Conference - 20261842023). The other issue is the organisational resistance whereby stakeholders may not be willing to use new technologies because of a lack of expertise, fear of being disrupted or inertia of the institution.Adoption is also complicated by legal and regulatory challenges, namely, the data governance issue, cross-border data sharing, and the legal status of smart contracts (Bolatbekkyzy, 2024). Moreover, cybersecurity threats are also increased within the defence settings where sensitive information can be targeted in order to be subjected to advanced cyberattacks. It is thus critical to ensure that there are sound security structures and that there is constant monitoring to ensure that the integrity of systems is maintained, as well as to uphold trust.Table 1: Barrier and Mitigation StrategiesRecommendationA national digital defence logistics strategy ought to be established in order to improve the level of transparency and integrity in the supply chain of defence in Malaysia. This plan must provide a clear plan on how to incorporate the latest technologies, like blockchain and Artificial Intelligence (AI), into procurement and logistics systems in a way that these solutions will be in line with the national security agenda and the national digital transformation agenda.One of the priorities is that pilot blockchain projects should be implemented in the selected defence procurement processes. Such pilot projects would enable the stakeholders to test the viability, operational issues and scalability before complete implementation. At the At the same time, the level of investment in AI capabilities should be increased to facilitate data-driven decision-making, such as risk assessment, fraud detection, and predictive logistics planning.
Naval & Maritime Academy Logistics Conference - 2026185It is also important to strengthen the governance and regulation systems. This involves setting clear legal principles of smart contracts, data sharing and cybersecurity principles and international best practices are adhered to. Open monitoring systems must be enhanced to enhance responsibility among all stakeholders.Lastly, capacity building and training programmes should be put on the agenda to prepare the personnel with the needed digital skills. The technical expertise and culture of innovation will be very important in achieving success in the adoption and long-term sustainability of these technologies in the defence logistics system in Malaysia.ConclusionThe report has discussed the main problems that are challenging the defence supply chain of Malaysia, and in this case, the problem of obscurity, corruption, inefficiencies, and disjointed data systems. It has indicated the role of the lack of transparency in deteriorating accountability and the workability of a high-stakes industry. The analysis shows that the potential solutions to these issues are the emerging technologies, which are blockchain and Artificial Intelligence (AI), which can help to improve traceability, increase data integrity, and provide real-time decision-making.The results highlight the fact that transparency is not only a governance principle but a strategic requirement towards efficiency, trust and security in defence logistics. There are high chances that the risks related to mismanagement and inefficiency will still exist without clear systems.Finally, successful digital transformation is the key to the alternation of the Malaysian defence supply chain towards becoming more accountable. With a combination of blockchain and AI as part of an effective policy and governance system, Malaysia will be able to create a more robust, transparent, and accountable defence logistics system in the future.REFERENCESAbdullah, E. and Zahari, H.M.(2023). Defence industry in Malaysia: learning from the past, enhancing the present and synergising the future of defence industrialisation. International Journal of Academic Research in Business and Social Sciences, 13(3), pp.1396-1412. https://kwpublications.com/papers_submitted/10075/defence-industry-inmalaysia-learning-from-the-past-enhancing-the-present-and-synergizing-the-future-ofdefence-industrialization.pdf Ahmad, H., Abul Hassan, S.H. and Ismail, S. (2021). Transparency level of the electronic procurement system in Malaysia. Journal of Financial Reporting and Accounting, aheadof-print(ahead-of-print). doi: https://doi.org/10.1108/jfra-07-2021-0181.
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Naval & Maritime Academy Logistics Conference - 2026187Indianexpress (2022). Aatmanirbhar in defence production: Where India stands among Indo-Pacific nations. [online] The Indian Express. Available at: https://indianexpress.com/article/explained/india-defence-production-exports-imports-capabilitiesexplained-8196801/. Karaduman, Ö. and Gülhas, G. (2025). Blockchain-enabled supply chain management: A review of security, traceability, and data integrity amid the evolving systemic demand. Applied Sciences, 15(9), p.5168. https://www.mdpi.com/2076-3417/15/9/5168 Kostopoulos, N., Stamatiou, Y.C., Halkiopoulos, C. and Antonopoulou, H. (2025). Blockchain Applications in the Military Domain: A Systematic Review. Technologies, [online] 13(1), pp.23–23. doi: https://doi.org/10.3390/technologies13010023. Kumar, N., Kumar, K., Aeron, A. and Verre, F. (2025). Blockchain Technology in Supply Chain Management: Innovations, Applications, and Challenges. Telematics and Informatics Reports, [online] 18, p.100204. doi: https://doi.org/10.1016/j.teler.2025.100204.McGrath, P., McCarthy, L., Marshall, D. and Rehme, J. (2021). Tools and Technologies of Transparency in Sustainable Global Supply Chains. California Management Review, [online] 64(1), pp.67–89. doi: https://doi.org/10.1177/00081256211045993.Mishra, R., Singh, R.K., Daim, T.U., Wamba, S.F. and Song, M. (2024). Integrated usage of artificial intelligence, blockchain and the internet of things in logistics for decarbonization through paradox lens. Transportation Research Part E Logistics and Transportation Review, 189, pp.103684–103684. doi: https://doi.org/10.1016/j.tre.2024.103684. Mohammed, S.S., Schaefer, D. and Milisavljevic-Syed, J. (2023). Towards pre-emptive resilience in military supply chains: A compromise decision support model-based approach. Production and Manufacturing Research: An Open Access Journal, 11(1). doi: https://doi.org/10.1080/21693277.2023.2220768. Morgan, T.R., Gabler, C.B. and Manhart, P.S. (2023). Supply chain transparency: theoretical perspectives for future research. The International Journal of Logistics Management, 34(5), pp.1422-1445. https://www.emerald.com/ijlm/article-pdf/34/5/1422/920443/ijlm02-2021-0115.pdf Paino, H., Anuwar, A. and Wahidah, U. (2025). Procurement Efficiency in Military Organization: The Analysis of Critical Success Factors. International Journal of Research and Innovation in Social Science, IX(I), pp.3959–3979. doi: https://doi.org/10.47772/ijriss.2025.9010309. Pokorny, L. (2026). Defense Platform Vulnerability Assessment: Quantifying Rare Earth Supply Chain Risks Across Major Weapons Systems. Available at SSRN 6208379. https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=6208379
Naval & Maritime Academy Logistics Conference - 2026188Sallehudin, M.I., Hashim, H.K., Shamsudheen, M.I., Razali, M.N. and Omar, N.B. (2025). Addressing Challenges and Enhancing Sustainability in the Food Supply Chain Management for the Malaysian Armed Forces Based on IoT Technologies. JOIV: International Journal on Informatics Visualization, 9(2), pp.445-450. https://mail.joiv.org/index.php/joiv/article/download/2259/1246Schäfer, N. (2023). Making transparency transparent: a systematic literature review to define and frame supply chain transparency in the context of sustainability. Management Review Quarterly, 73(2), 579-604. https://link.springer.com/content/pdf/10.1007/s11301-021-00252-7.pdf Snigdha, I.J. and Oyshi, M.S. (2025). Blockchain for Supply Chain Transparency: Enhancing Traceability and Efficiency in the US Logistics Sector. Journal of Computer Science and Technology Studies, 7(2), pp.405–416. doi: https://doi.org/10.32996/jcsts.2025.7.2.42. Syamra’Suhaimi, Z. and Mokhtar, A.R.M. (2023). Exploring the elements of supply chain resilience in Malaysia’s Defence Industry–A Conceptual Framework. https://www.researchgate.net/profile/Ahmad-Rais-Mohamad-Mokhtar/publication/378851010_Exploring_the_elements_of_supply_chain_resilience_in_Malaysia’s_Defence_Industry_-A_Conceptual_Framework/links/65ed1c77b7819b433bf29af8/Exploring-the-elements-of-supply-chain-resilience-in-Malaysias-Defence-Industry-AConceptual-Framework.pdfTransparency International Defense and Security (2025). Malaysia Archives - Transparency International Defence & Security. [online] Transparency International Defence & Security. Available at: https://ti-defence.org/country/malaysia/ [Accessed 4 Apr. 2026].
Naval & Maritime Academy Logistics Conference - 2026189THE IMPACT OF THIRD-PARTY LOGISTICS PROVIDERS ON EXPORT PERFORMANCE AND TRANSPARENT SUPPLY CHAIN GOVERNANCE: EVIDENCE FROM SRI LANKA’S APPAREL INDUSTRYMs. HNATD WijebandaraNational Institute of Business Management, Sri LankaAbstractGlobalization has intensified competition among strategic manufacturing companies, pushing them to adopt transparent supply chain practices, especially in the apparel sector, which significantly contributes to national export earnings. This sector faces unique logistics challenges, including cost pressures and infrastructure bottlenecks, necessitating robust supply chain governance to meet international buyer demands. Third-party logistics (3PL) providers can enhance logistics efficiency, facilitate real-time information exchange, and improve supply chain transparency. This paper investigates the potential impact of 3PL providers on the performance of export transactions and supply chain management in Sri Lanka’s apparel industry. Transparent supply chain governance is defined as the visibility, accountability, and openness in information sharing among supply chain partners to foster better coordination without compromising trust. The study analyzes logistics aspects, including distribution quality, customer service timeliness, pricing, and communication efficiency, as they relate to export performance and transparency. Utilizing quantitative research, primary data were collected via a structured questionnaire from 113 employees of Sri Lanka’s five largest apparel exporters. Findings indicate that distribution quality, pricing, and communication efficiency significantly influence export performance and are critical for transparent supply chain governance, enhancing information flow and coordination. However, customer service timeliness did not show a significant direct effect on export performance, suggesting potential mediating variables may exist. The study concludes that effective global competitiveness correlates with the transparency of logistics processes and the reliability of communication and delivery systems, though limitations regarding sample size and company representation should be acknowledged.Keywords: Third-Party Logistics Providers, Supply Chain Visibility, Export Performance, Supply Chain Management, Apparel Industry, Transparent Supply Chain Governance
Naval & Maritime Academy Logistics Conference - 2026190IntroductionThe clothing industry is a key pillar of the national economy, contributing over 50% of export revenue and employing more than 300,000 people, most of whom are women (Dheerasinghe, 2009). Increasing global competition has created pressure on apparel producers to reduce costs, improve speed, and ensure reliable delivery, making efficient logistics operations essential. Transparent supply chain governance, which promotes visibility, accountability, and information sharing, has become increasingly important due to rising international demands for traceability and ethical sourcing (Brun et al., 2020).Third-party logistics (3PL) providers offer strategic advantages by reducing logistics costs, improving flexibility, and enhancing delivery reliability (Jean, 2024). Services such as warehousing, transportation, and freight forwarding allow firms to focus on core activities while benefiting from 3PL expertise and infrastructure. In Sri Lanka, warehouse performance and service quality have been identified as key priorities influencing customer satisfaction (Gunathilaka et al., 2023; Seneviratne and Premarathne, 2017).Digitalization is further transforming 3PL capabilities through technologies like IoT, cloud systems, and AI, improving supply chain visibility and responsiveness (Schmeisser et al., 2026). However, limited research exists on the relationship between 3PL performance dimensions and export performance in Sri Lanka (Peiris, 2023). This study addresses this gap by examining key 3PL dimensions and their role in enhancing export performance and transparent supply chain governance.Literature Review1. Third-Party Logistics ProvidersThe world of international business is changing fast due to globalization, integrated logistics, and development of information and communication technology. These changes are redefining trading trends across the world and forcing companies to establish global networks that can offer effective and high-quality response to market needs. Third-party logistics as a key element of the supply chain management has drawn an increasing academic and practitioner interest because of its holistic and systemic solution to the outsourcing of logistics (Schmeisser et al., 2026).A third-party relationship is established as a mutually beneficial partnership with a company as a long-term relationship in which a company seeks the services of a third party to provide specialized logistics services. Since 1970s and 1980s, companies have been shifting the logistic operations like transportation, warehousing, inventory management and forwarding freight to lower costs and concentrate on core operations. The commonest 3PL services are warehousing, cross-docking, order processing, barcoding, freight forwarding, customer assistance and information technology services (Premkumar et al., 2020).
Naval & Maritime Academy Logistics Conference - 2026191As per the previous studies, 3PL companies process about 40% of all international logistics services worldwide and 70% of Japanese manufacturing firms and 42 percent of U.S. logistics services are outsourced to service providers. These numbers illustrate the pivotal role of 3PL in the contemporary supply chains and emphasize the significance of comprehending performance dimensions that lead to the success of exports. These 3PL services directly perform in terms of effectiveness of export of manufacturing companies as evidenced in the second subsection.2. Export PerformanceExport performance is divided into objective and subjective dimensions. Objective performance is quantitatively measured through sales volume, export revenue growth, and market share. In contrast, subjective performance evaluates the efficiency and effectiveness of export activities via self-evaluation, often using indicators such as export profitability, net profit growth, and market share. (Negeri and Ji, 2023).Studies determine price competitiveness, timeliness of the service, delivery quality and specific customized service to be determining factors of export performance. Another measure that is usually used to measure performance is export market concentration and diversification. These dimensions are directly affected by proper logistics management since the timely delivery of products, minimization of expenditure, and improvement of customer satisfaction are evident in the international market (Dayangan and Aykol, 2026). The ability to perform well in exports, however, becomes increasingly reliant on the transparency and control of the whole supply chain and not just the efficiency of logistics.3. Transparent Supply Chain GovernanceTransparent supply chain governance practices improve visibility and accountability among partners, which is crucial in global industries like apparel manufacturing for maintaining customer trust and ethical sourcing. Third-party logistics (3PL) providers contribute to this transparency by enhancing information flow, tracking shipments, and improving communication efficiency throughout the supply chain. (Brun et al., 2020). Good communication between the provider and client of the 3PL is essential for achieving transparency.4. Communication EfficiencyEffective communication, characterized by timely and open information exchange, is crucial for fostering business relationships across diverse cultural and geographical contexts. It enhances coordination, commitment, cooperation, and trust between exporters and logistics partners, significantly influencing export performance. The quality of communication is directly linked to trust and commitment levels, highlighting the importance of a cross-cultural communication strategy in international trade relationships. (Zafari et al., 2023).
Naval & Maritime Academy Logistics Conference - 2026192The communication barriers in international logistics can be categorized into three levels: linguistic, technological, and cultural. Linguistic issues emerge between exporters and foreign buyers/logistics providers, while technological barriers arise from incompatible information systems and inadequate digital infrastructure. Cultural mismatches complicate communication norms and expectations. To address these barriers, emerging technologies such as multilingual communication tools, electronic data interchange (EDI), and cloud-based teamwork tools are being employed. In Sri Lanka, effective training in cross-cultural communication and the implementation of standardized digital protocols are crucial for apparel exporters targeting the European and North American markets. (Zafari et al., 2023; Aririguzoh, 2022).Two theoretical frameworks are used in relation in this study. To begin with, Transaction Cost Economics (TCE) is the reason why companies outsource their logistics to 3PL companies namely- in an attempt to lower their coordination, negotiation, and monitor expenses by making specialized contracts (Visser and Lambooy, 2004). Resource-Based View (RBV) suggests that 3PL vendors offering superior and imitable service features, such as advanced tracking systems and multi-language support, help exporters create competitive advantages. This theory highlights the importance of distribution quality, timely service, pricing, and effective communication as critical performance dimensions linking 3PL capabilities to export performance.Despite the growing literature on third-party logistics (3PL) performance and export success, significant research gaps remain, particularly in small island developing economies such as Sri Lanka (Peiris, 2023). The interactive effects of different 3PL performance dimensions on export performance, as well as the mediating role of transparent supply chain governance, have not been sufficiently explored in the apparel industry. This study aims to address these gaps.Methodology1. Research DesignThe study adopts a quantitative, cross-sectional survey design to examine the relationship between 3PL performance and export performance at a specific point in time. Although longitudinal and mixed methods approaches could provide deeper insights, they were not used due to time constraints and the focus on hypothesis testing. Despite limitations in establishing causality, this design is widely accepted in logistics research (Seneviratne and Premarathne, 2017).Potential biases in self-reported data, such as social desirability and recall bias, were minimized through participant anonymity and the use of validated Likert-scale measures. The study combines primary and secondary data to provide a comprehensive understanding of the impact of 3PL performance on export success (Seneviratne and Premarathne, 2017).
Naval & Maritime Academy Logistics Conference - 2026193Potential biases in self-reported data, such as social desirability and recall bias, were minimized through participant anonymity and the use of validated Likert-scale measures. The study combines primary and secondary data to provide a comprehensive understanding of the impact of 3PL performance on export success (Seneviratne and Premarathne, 2017).2. Conceptual Framework and HypothesesThe conceptual framework places four independent variables, which are distribution quality, on-time customer service, price factor, and communication efficiency, as predictors of the dependent variable, users export performance. Based on prior literature, four hypotheses were formulated:H1: There is a significant impact of distribution quality on users’ export performance.H2: There is a significant impact of on-time customer service on users’ export performance.H3: There is a significant impact of price factor on users’ export performance.H4: There is a significant impact of communication efficiency on users’ export performance.3. Population and SampleIn a study involving five major apparel export companies in Sri Lanka, a sample of 113 employees was selected out of a total population of 160. The sample was determined through proportional stratified sampling to ensure each company was adequately represented. The participants included managers, executives, non-executives, and other staff involved in export activities.4. Questionnaire and Data CollectionThe questionnaire was broken into three parts. Section A took the demographic data such as gender, age, job title, years of 3PL usage and the department in charge. Section B had 13 statements that were associated with the independent variables which included distribution quality (DQ1-DQ4), on-time customer service (OTCS1-OTCS4), price factor (PF1-PF3), and communication efficiency (CE1-CE2). There were four statements in section C which measured export performance (UEP1–UEP4) of the users. The questionnaire questions were based on validated questions related to the existing research on the 3PL performance and export performance, especially Yeung (2006), Ozoglu and Buyukkeklik (2017), and LaBahn and Harich (1997). Content validity was ensured through an academic foundation and a pilot study with 10 target population respondents. Feedback led to minor word changes, enhancing item clarity and logical flow, thereby ensuring understanding for both managerial and operational employees.Respondents rated statements on a five-point Likert scale (1 to 5). Analysis was performed using IBM SPSS Statistics 25. Diagnostic tests confirmed model strength; VIF
Naval & Maritime Academy Logistics Conference - 2026194scores were under 5, indicating no multicollinearity. The Durbin Watson statistic was 1.809, showing no significant autocorrelation. Normality of residuals was assessed with the Kolmogorov-Smirnov test, and homoscedasticity was evaluated through scatter plots. Missing data was minimal (< 2%) and addressed via listwise deletion.5. Ethical Considerations 0714137508 – channaThis study followed ethical guidelines, ensuring voluntary participation and confidentiality. Participants received information about the study’s goals before completing the questionnaire, with no personally identifiable information collected. Companies were referred to by coded names to maintain commercial confidentiality.Results and Discussion1. Demographic ProfileA total of 113 respondents were used as the sample. There was gender distribution with 61.1 percent of the participants being male and 38.9 percent being female. The age bracket showed that most of the respondents (38.9) were between 26 years to 44 years, 31% below and 27.4% above 45 years. The largest professional group was a group of executives (52.2), next came a group of non-executives (22.1), then there were managers (20.4), and others (5.3). In terms of the number of years in using 3PL services, 47.8% of the organizations had been using 3PL services between five and ten years and 38.1% less than five years. The logistics department was found to be the most responsible department in export processes (40.7%), then the shipping department came in (37.2%).2. Reliability AnalysisCronbachs Alpha was used to perform reliability analysis to test the internal consistency of all scales of measurement. Cronbachs Alpha distribution quality recorded 0.798, on-time customer service 0.858, price factor 0.815, communication efficiency 0.909 and user export performance 0.826. The scales were found to be reliable since all the values were above the suggested value of 0.70. Among all variables, communication efficiency showed the highest score in reliability.3. Correlation AnalysisThe Pearson correlation analysis indicated significant relationships between independent factors and export performance. Distribution quality showed the strongest correlation (r = 0.813, p < 0.001), followed by on-time customer service (r = 0.720, p < 0.001), price factor (r = 0.655, p < 0.001), and communication efficiency (r = 0.517, p < 0.001).
Naval & Maritime Academy Logistics Conference - 20261954. Regression and Hypothesis TestingThe analysis utilized multiple linear regression to test four hypotheses, achieving a model that explained 69.5% of export performance (R² = 0.695). ANOVA (F = 216.948, p < 0.001) confirmed the model’s fit, while a Durbin Watson value of 1.809 indicated no significant autocorrelation. The regression equation is:UEP = 0.552 + (0.185) X1 – (0.160) X2 + (1.025) X3 – (0.194) X4The quality of distribution (H1) demonstrated a beta coefficient of 0.981 and a significance value of 0.000, confirming its strong impact on export performance. This aligns with prior studies emphasizing packaging quality, lead ti me reduction, and commodity handling in export processes. Yeung (2006) found delivery quality to be the top predictor of 3PL user export performance in Asia, while Neo, Xie, and Tsui (2004) highlighted packaging integrity and lead time reduction as key quality dimensions. The high beta coefficient suggests a significant influence of distribution quality in the Sri Lankan apparel sector, where product condition is critical for international buyers.The price factor (H3) showed a significant positive impact on export performance (beta = 0.218, p = 0.019), confirming that competitive pricing by 3PL providers is crucial. This aligns with Anderson et al. (2011), who noted price sensitivity among 3PL users, emphasizing its importance in selection and performance. Sri Lankan apparel exporters face challenges in global markets, where logistics cost efficiency is essential for enhancing export marketability amidst competition.The H4 result indicates a significant negative relationship between communication efficiency and export performance (beta = -0.242, p = 0.004). This counterintuitive finding is explained by several factors. First, the measurement items (CE1: electronic communication responsiveness; CE2: client language use) may oversimplify communication, creating inefficiencies like excessive email loops that
Naval & Maritime Academy Logistics Conference - 2026196hinder decision-making. Second, organizations with high communication frequency might face logistical challenges, leading to an inverse relationship due to saturation effects. Third, cultural miscommunication can result in misunderstandings unless adjustments are implemented. The rejection of H2 concerning on-time customer service (beta = -0.168, p = 0.201) lacks significance for various reasons. The measurement items may not encompass the full scope of timeliness as perceived by export managers. Additionally, in the apparel industry, timely delivery might be a baseline expectation rather than a performance enhancer. Industry-specific challenges, such as seasonal cycles and lengthy lead times in Sri Lanka’s apparel sector, likely diminish the perceived influence of on-time service on export performance. Future qualitative studies are suggested to delve deeper into this aspect. Overall, findings highlight the critical role of 3PL performance in supply chain governance—enhancing visibility, market entry via price competitiveness, and fostering cross-organizational communication in international markets.Conclusion And Recommendations1. ConclusionThe study investigates the impact of third-party logistics (3PL) providers on export performance and supply chain governance in Sri Lanka’s apparel industry, utilizing data from 113 respondents across five major firms. Through correlation and regression analysis, it finds that distribution quality, pricing factors, and communication efficiency significantly influence export performance. The findings align with Transaction Cost Economics, indicating that an efficient and transparent 3PL performance reduces coordination costs and enhances export outcomes. Distribution quality emerges as crucial (beta = 0.981), supporting the Resource-Based View by positioning logistics as a strategic asset for competitive differentiation. Conversely, the negative correlation with communication efficiency challenges existing beliefs in cross-cultural communication, suggesting that the quality and cultural sensitivity of communication, rather than its frequency or technological aspects, may more accurately affect export performance. Research indicates that 3PLs enhance transparent supply chain governance through improved information flow and communication, leading to increased buyer trust and better responsiveness to market demands. The hypothesis regarding timely customer service was rejected, suggesting a need for further analysis of its interactions with other variables.
Naval & Maritime Academy Logistics Conference - 20261972. RecommendationsPrioritizing distribution quality is emphasized in the guidelines for Sri Lankan garment exporters and 3PL suppliers. This entails making investments in cutting-edge packing options, real-time shipping tracking technologies, and sophisticated warehouse management systems. 3PL agreements are very beneficial to exporters because they guarantee that items are delivered in the best possible condition throughout the supply chain. (Gunathilaka et al., 2023). Second, pricing strategies should be flexible enough to be cost competitive and at the same time offer quality services to exporters who should be able to use clear pricing procedures depending on agreed quantity of service and thus remain profitable in external markets (Abidin et al., 2023).To enhance cross-cultural and cross-linguistic interaction, improving communication systems via cloud-based collaboration, multilingual customer service, and standardized protocols is essential. Apparel exporters should also establish longterm strategic contracts with 3PL providers to promote knowledge exchange, technology investments, and continuous service improvement. (Aririguzoh, 2022).3PL companies should reduce order damages by at least 1% and lead times by 15% within 2 years through investments in automated warehouse management and GPS for real-time shipments. Pricing must align with a quarterly benchmark from at least three competitor 3PL providers, ensuring prices are within 10% of market median rates, as defined in service-level agreements (SLAs). Key performance indicators include responding to international buyer queries in an average of 4 business hours and providing multilingual support as stipulated in contracts with 3PL providers.Sri Lanka’s 3PL services should align with the Customs Ordinance and Export Development Board (EDB) requirements while addressing European and US buyer demands, emphasizing sustainability reporting and EU Corporate Sustainability Due Diligence compliance. Additionally, focusing on long-term contracts builds trust and mutual investment in partnerships, producing better export outcomes compared to costdriven transactional relationships.3. Limitations and Future ResearchThe study has several limitations, including a short time frame and a small sample of five apparel export companies, which may not fully represent the entire industry. The use of cross-sectional data limits the ability to establish causal relationships, while selfreported responses may introduce bias (Abeysekara et al., 2019).Future research should adopt longitudinal designs to examine changes in 3PL performance over time and incorporate qualitative methods, such as interviews and case studies, to gain deeper insights. Additionally, emerging technologies like blockchain, IoT, and artificial intelligence should be explored as drivers of 3PL improvement. Comparative
Naval & Maritime Academy Logistics Conference - 2026198studies across different export sectors and developing economies could further enhance understanding of 3PL’s role in global competitiveness (Tiwari et al., 2023).Furthermore, increasing emphasis on supply chain ethics highlights the need for Sri Lankan apparel exporters and 3PL providers to integrate sustainability into logistics governance. This includes adopting carbon-efficient transportation, ensuring traceability, and maintaining transparent reporting aligned with global standards.REFERENCESAbeysekara, N., Wang, H. and Kuruppuarachchi, D. (2019). Effect of supply-chain resilience on firm performance and competitive advantage. Business Process Management Journal, 25(7), pp.1673–1695. doi:https://doi.org/10.1108/bpmj-09-2018-0241.Abidin, F.Z., Jamaluddin, A., Tanggamani, V. and Sapari, A. (2023). Pricing Strategies: Determining the Best Strategy to Create Competitive Advantage. [online] ResearchGate. Available at: https://www.researchgate.net/publication/371900143_Pricing_Strategies_Determining_the_Best_Strategy_to_Create_Competitive_Advantage [Accessed 23 Mar. 2026].Aririguzoh, S. (2022). Communication competencies, Culture and SDGs: Effective Processes to cross-cultural Communication. Humanities and Social Sciences Communications, [online] 9(1), pp.1–11. Available at: https://www.nature.com/articles/s41599-022-01109-4 [Accessed 23 Mar. 2026].Brun, A., Karaosman, H. and Barresi, T. (2020). Supply Chain Collaboration for Transparency. Sustainability, [online] 12(11), p.4429. Available at: https://www.mdpi.com/2071-1050/12/11/4429 [Accessed 23 Mar. 2026].Dayangan, C. and Aykol, B. (2026). Dynamic capabilities behind performance of exporting firms: Taxonomy, critique, future research directions. Industrial Marketing Management, 133, pp.20–43. doi:https://doi.org/10.1016/j.indmarman.2026.01.003.Dheerasinghe, R. (2009). Garment Industry in Sri Lanka Challenges, Prospects and Strategies. Staff Studies, 33(1), p.33. doi:https://doi.org/10.4038/ss.v33i1.1246.Gunathilaka, M., Kavirathna, C., Wijayanayake, A. and Prabodhika, J. (2023). Prioritizing Warehouse Performance Measures in Sri Lankan 3PL Industry. doi:https://doi.org/10.1109/scse59836.2023.10215007.
Naval & Maritime Academy Logistics Conference - 2026199Jean, G. (2024). Third-Party Logistics (3PL) and Supply Chain Efficiency. [online] ResearchGate. Available at: https://www.researchgate.net/publication/384334813_ThirdParty_Logistics_3PL_and_Supply_Chain_Efficiency [Accessed 23 Mar. 2026].Krejcie, R.V. and Morgan, D.W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30(3), pp.607–610. doi:https://doi.org/10.1177/001316447003000308.Negeri, A. and Ji, Q. (2023). Export knowledge, export commitment and coffee export performance in Ethiopia. Heliyon, [online] 9(6), p.e16403. doi:https://doi.org/10.1016/j.heliyon.2023.e16403.Peiris, K. (2023). THE IMPACT OF ADAPTING 3PL SERVICES ON THE LOGISTICS PERFORMANCE OF FMCG COMPANIES IN THE COLOMBO DISTRICT, SRI LANKA. [online] Journal of Multidisciplinary Research. Available at: https://www.academia.edu/129744928/THE_IMPACT_OF_ADAPTING_3PL_SERVICES_ON_THE_LOGISTICS_PERFORMANCE_OF_FMCG_COMPANIES_IN_THE_COLOMBO_DISTRICT_SRI_LANKA [Accessed 23 Mar. 2026].Premkumar, P., Gopinath, S. and Mateen, A. (2020). Trends in third party logistics – the past, the present & the future. International Journal of Logistics Research and Applications, 24(6), pp.1–30. doi:https://doi.org/10.1080/13675567.2020.1782863.Schmeisser, B., Saebi, T., Schotter, A.P.J. and Gooderham, P. (2026). The digital transformation of international business: A conceptualization, multidisciplinary review, and research agenda. Journal of World Business, 61(1), p.101695. doi:https://doi.org/10.1016/j.jwb.2025.101695.Seneviratne, R. and Premarathne., W. (2017). FACTORS AFFECTING THE SATISFACTION OF THIRD PARTY LOGISTICS (3PL) CUSTOMERS IN THE APPAREL SECTOR IN SRI LANKA. International Journal of Advanced Research, 5(9), pp.431–442. doi:https://doi.org/10.21474/ijar01/5347.Tiwari, S., Sharma, P., Choi, T.-M. and Lim, A. (2023). Blockchain and third-party logistics for global supply chain operations: Stakeholders’ perspectives and decision roadmap. Transportation Research Part E: Logistics and Transportation Review, [online] 170(1), p.103012. doi:https://doi.org/10.1016/j.tre.2022.103012.Zafari, K., Biggemann, S. and Garry, T. (2023). Development of business-to-business relationships in turbulent environments. Industrial Marketing Management, 111, pp.1–18. doi:https://doi.org/10.1016/j.indmarman.2023.03.002.
Naval & Maritime Academy Logistics Conference - 2026200ACKNOWLEDGEMNETI would like to express my sincere gratitude to all those who supported me in completing this research. First and foremost, I extend my heartfelt thanks to my lecturers, especially Dr. Wathsala Somachandra in NIBM for their continuous guidance, valuable insights, and encouragement throughout this study. I am also deeply thankful to my colleagues and friends who assisted me in various ways and provided encouragement during the research process. My sincere appreciation goes to all the respondents who contributed their time and valuable information, which was essential for the successful completion of this research.
Naval & Maritime Academy Logistics Conference - 2026201THE ROLE OF BLOCKCHAIN TECHNOLOGY IN ENSURING TRANSPARENCY AND ACCOUNTABILITY IN SRI LANKA’S SUPPLY CHAINSLieutenant Commander (S) EMCB EkanayakeLong Logistics Managment Course No.10Naval & Maritime AcademyAbstractBlock Chain Technology has developed as a transformative infrastructure for addressing continuous challenges of opacity, fraud, and accountability deficits in supply chain management. This paper investigate the role of block chain in enhancing transparency and the accountability within Sri Lanka’s supply chains, with a focus on key export sectors including tea, apparel, and port logistics, as well as public procurement systems. Drawing on second literature, institutional reports and documented pilot initiatives, the study evaluates the applicability of block chain’s core properties, namely decentralization, immutability, and smart contract automation, to the Sri Lankan supply chain context. The results show that the block chain technology has significant potential to decrease document fraud, enhance traceability, increase regulatory compliance, and establish trust among stakeholders.. The adoption is however limited by the gaps in digital infrastructure, lack of technology literacy among supply chain players, fragmented regulatory frameworks, and inter-agency coordination. The article suggests a step-bystep implementation plan and policy suggestions based on the developmental situation of Sri Lanka, adding to the discussion of digital transformation in supply chains of emerging economies.Keywords: Block chain Technology, Supply.Chain Transparency, Accountability, Sri Lanka, Digital Transformation, and Smart Contracts
Naval & Maritime Academy Logistics Conference - 2026202IntroductionIntegrity of the supply chain is a formative issue to countries that have their eyes on being credible players in the world of trade. Efficient, ethical and competitive supply chains are preconditioned by transparency, which can be discussed as the visibility and access to the information of the supply chain nodes, and accountability which can be defined as the verifiable responsibility of actions and results. Sri Lanka is a small open economy that has largely relied on export earnings through tea, apparel, spices and sea foods and these problems of supply chain governance have historically compromised the competitiveness of its trade and market efficiency in the country.Ports document fraud, public procurement transparency, inability to verify the provenance of agricultural exports, and compliance failures in the apparel sector are common examples of governance failures that directly cost the exporters, importers, regulators, and final consumers. Traditional information systems, which are defined by silo databases, manual verification, and the use of trusted intermediaries, have been found not to be adequate to decentralize these issues at scale.The first operationalization of block chain technology in the context of crypto currency has been understood as a general purpose infrastructure to construct tamper resistant and shared ledgers of transactions and records. Its main characteristics of decentralization, cryptographic immutability, and programmable smart contracts directly meet the needs of transparency and accountability of the complex, multi-stakeholder supply chains. The technology has proven its ability to revolutionize supply chain governance in the case of global pilots in the agriculture, pharmaceutical, logistics and public procurement sectors.This paper discusses the possibility and potential ways of the block chain technology to overcome the lack of transparency and accountability in the supply chain of Sri Lanka. It examines the structural features of main Sri Lankan supply chains, deems the literature on the use of block chains in similar settings, and suggests a realistic roadmap of adoption in accordance with the institutional and digital infrastructure realities in the countries.Literature Review1. Block chain Technology: Core Properties and Supply Chain RelevanceBlock chain technology A distributed ledger technology (DLT) is a distributed system that indexes transactions within a network of computers in a transparent, chronological, and immutable fashion. A cryptographic hash is stored in each block of data, and each entry is a chain of verifiable records. Block chain was firstly proposed by Nakamoto (2008) as the basic infrastructure of the Bit coin crypto currency, but later permissioned block chain systems like hyper ledger Fabric and Ethereum enterprise
Naval & Maritime Academy Logistics Conference - 2026203versions have been developed to enable the technology to be used in institutional and commercial contexts.Block chain in supply chain settings allows various stakeholders, such as manufacturers, logistics providers, customs authorities, financiers, and regulators, to have a common consistent view of transaction histories, and does not need central data custody. According to the study by Kshetri (2018), block chains solve four major supply chain issues: increasing supply chain visibility, tracking and tracing, counterfeiting, and regulatory compliance. Smart contracts, code which executes automatically and is stored within block chain platforms further automate compliance checks, payment triggers and documentation verification, and they need not be heavily relying on manual processes and intermediaries.2. Block chain and Supply Chain TransparencyTransparency in supply chains is the extent to which parties involved in the network can access pertinent information, which is accurate, timely and relevant concerning products, processes and partners. Saberi and colleagues (2019) determined that block chain contributes significantly to transparency in the supply chain by establishing an audit trail that is impossible to alter and can be verified by any authorized party through the available block chain. This especially applies to industry where provenance and authenticity is commercially significant, including high-quality agricultural products and pharmaceuticals.In container logistics, and the Trade Lens platform, created by Maersk and IBM, showed that block chain-based shipping documentation saved up to 40 per cent of document processing time and prevented cases of document duplication and document fraud by significant margins. The same occurred with the Food Safety Block chain Network which cut seven days of food trace time to less than three seconds and this is considered a transformational step in supply chain visibility at Walmart.In the context of the low regulatory capacity and informality, the effects of transparency are magnified in developing country supply chains. Abeyratne and Monfared (2016) suggested that the capacity of block chain to produce verifiable and low-cost records available to small producers and micro-enterprises would make supply chain participation more democratic and decrease information asymmetries that disfavored primary producers in commodity markets at the moment.3. Block chain and Accountability in Public and Commercial Supply ChainsThe supply chain management accountability is inclusive of the assignable responsibility of the quality of products, compliance and regulatory, financial and ethical practices. According to Atzori (2015), block chain establishes structural accountability because it is difficult technically to refute the knowledge of or involvement in documented
Naval & Maritime Academy Logistics Conference - 2026204transactions. Any actor interacting with a block chain-stored transaction leaves a verifiable signature, which is cryptographically verifiable, and provides permanent evidence of accountability.Block chain has been suggested and tested in the context of the public procurement as a solution to decreasing corruption by establishing transparent and auditable documents of tender processes, award of contracts, and disbursement of payments. The land registry in the Government of Georgia based on block chains and the digital governance infrastructure in Estonia are often mentioned as successful examples of block chain allowing institutional responsibility in the context of state administration.Accountability implications in commercial supply chains are most prominent in industries that fall under the international compliance regulations, such as labor regulations in the garment industry, food safety regulations in agricultural exports and cold chain integrity in the pharmaceutical distribution industry. Compliance records that are block chain-enabled can be a verifiable evidence during regulatory audits, dispute resolution proceedings, and sustainability report frameworks.Sri Lanka`s Supply Chain Context1. Key Sectors and Governance ChallengesThe tea, apparel, spices, rubber, and fisheries industries are the fundamental export industries in Sri Lanka, and their total value comprises most of the merchandise export earnings. Every sector encounters unique yet similar challenges of supply chain governance. The tea industry, internationally known to be of good quality, faces a challenge of provenance checking due to the blending and re-labeling processes at the intermediary levels of the industry, which is destabilizing the traceability of a single-origin assertion that fetches high prices in the foreign markets.The apparel industry where more than 300,000 employees are engaged and the industry contributes about 44 per cent of merchandise export, has been under constant pressure by international purchasers and non-governmental organisations to check the compliance of the industry with labour standards. The cost and frequency of manual supplier audit procedures and the potential to be misrepresented makes the exercise rather costly and hinders credibility of compliance claims to global retail customers.At the Port of Colombo, the major trade entry point in Sri Lanka, the inefficiencies in document processing and the presence of fraud in custom declaration add to the dwell time and cost traders directly. Sri Lanka Customs has also been engaged in digitalization projects such as the ASYCUDA World system, which has not been integrated with logistics service providers, freight forwarders, and trading partners yet, and as such, it is not possible to have real-time visibility and auditability.
Naval & Maritime Academy Logistics Conference - 2026205The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and independent researchers have repeatedly reported that the procurement in Sri Lanka by the government is a sector prone to procedural non-adherence and rent-seeking activities. The lack of transparency in procurement processes, coupled with a scarcity of digital audit trails, leaves the circumstances in which the deficit of accountability exists even with the formal regulations in place.2. Existing Digital Infrastructure and ReadinessSri Lanka has come a long way in terms of digital infrastructure development. The country has been at the forefront of South Asia in terms of indicators of internet penetration, mobile connectivity, and service delivery by e-government. Digital transformation in various sectors of government has been led by the Information and Communication Technology Agency of Sri Lanka (ICTA), which in turn, in 2019, announced the Sri Lanka Block chain Initiative, which marked the first formal, government-level interest in the exploration of distributed ledger applications.Nevertheless, there are still large disparities in digital preparedness, especially within small and medium enterprises (SMEs) and primary agricultural producers who are the core of major export supply chains. The distribution of technology literacy, access to devices, and reliability of connectivity is not even, with the actors of the rural and plantation sectors being particularly disadvantaged. These loopholes present material impediments to the encompassing application of block chain solutions that demand the involvement of all the supply chain nodes to provide systemic transparency advantages.
Naval & Maritime Academy Logistics Conference - 2026206Findings and Discussion1. Traceability and Provenance VerificationThe greatest value and the most immediate use of block chain in the supply chains in Sri Lanka is the introduction of end to end product traceability, especially of high value agricultural products that are intended to be exported. The Ceylon Tea block chain-based traceability system would trace all the stages of the tea plucking in the estate, the processing in the factory, the grading process, the auction, the blending process, the packaging process, and the export process, establishing an irrevocable provenance history that could be consulted by the international buyers and the regulatory authorities. This would be going against the reputational risks involved with fraudulent origin claims and would assist Sri Lanka to fetch exorbitant prices in discriminating export markets.In other traceability projects in commodity enterprises or cocoa in Ghana and coffee in Colombia, quantifiable business impacts, including improved export prices, faster customs clearance, and improved buyer relationships, have already been observed. The tea and spice industries of Sri Lanka can be effectively applied to the models as it possesses well-developed export intermediary networks, established, ordered and auction markets, which can be utilized as anchor of block chain consortiums.2. Port Logistics and Customs EfficiencyIn the Port of Colombo, implementation of block chains presents an opportunity in developing a common, permissioned trading documentation system that can be accessed by customs, port operators, shipping lines, freight forwarders, and traders. Smart contracts may be used to automate the customs clearance triggers when the submitted documents are verified, eliminating the number of steps that may take place during manual processing and the delays that may be associated with it. The removal of document duplication between various agencies, which has been a thorn in the flesh in the trade facilitation of Sri Lanka, would create cost savings directly and lessen the chances of document fraud.The consistency of a block chain based port community system with the commitments of Sri Lanka under the World Trade Organization (WTO) Trade Facilitation Agreement would even enhance the regulatory justification of investment. The experience of the Port of Singapore Networked Trade Platform and the Dubai Trade Single Window have shown that a trade facilitation infrastructure anchored on block chains can help cut average document processing time by 30 to 50 per cent, and trade transaction costs correspondingly.3. Public Procurement TransparencyThe implementation of block chain in the Sri Lankan public procurement system is a high-impact accountability intervention. A licensed block chain system capturing tender announcements, bid requests, assessment results, contracting deliveries and payments would establish an auditory, irreversible database that can be viewed by the
Naval & Maritime Academy Logistics Conference - 2026207control organizations, civil societies and common people. This transparency of structure would increase the cost of non-compliance in the procedure and discourage the rent seeking behavior by ensuring that the irregularities can be detected and attributed.The consortium administrators could be the National Procurement Commission of Sri Lanka and the Ministry of Public Finance with ministries and contracting authorities as nodes. The block chain records would be integrated with the current government financial management information system (CIGAS) so that the records are synchronized with the official financial accounts to create a verifiable and coherent audit ecosystem. The World Bank and other international development organizations such as Asian Development Bank have shown interest in funding such initiatives in a number of South Asian settings, which has offered a possible source of funds to Sri Lanka.4. Barriers to AdoptionIn spite of the obvious potential, some structural limitations limit the use of block chains in the supply chains in Sri Lanka. First, the digital divide between the technologically advanced export-oriented companies and the majorities of the informal, small-scale producers at the bottom of major supply chains restricts the practicability of end-to-end block chain coverage. Block chain traceability systems, unless designed to include and be made affordable, would be limited to collecting the highest levels of supply chains without verifying primary producers and leaving accountability issues unchecked.Second, there is uncertainty about regulation that poses a major setback. Sri Lanka does not have an effective legal framework on digital evidence, the enforceability of smart contracts, and distributed ledger system data regulation at present. The value of accountability of block chain implementations is limited without a clear legal acknowledgment of block chain records as admissible evidence in business and regulatory processes.Third, the issue of inter-agency coordination is especially severe in the port and customs setting, where various government agencies with overlapping jurisdiction and differing information systems need to be synchronized in order to facilitate a consistent block chain platform. Historical opposition to information exchange between agencies is a cultural and institutional barrier that cannot be overcome solely by technical means.Recommendations1. Phased Adoption RoadmapIt is advisable to adopt block chains in phases, with the first phase taking on the high-ready high-impact industries, where the digital infrastructure, consortium governance, and commercial incentives are already aligned. Ceylon Tea industry, having its well-established auction system, brand worth, and already existing digital trading systems
Naval & Maritime Academy Logistics Conference - 2026208is the most optimal entry point of a national block chain traceability pilot. Effectiveness in this field would create evidence, institutional learning, and political impetus to further use.The second step will be dealing with port and customs documentation, with the strategic significance of the Port of Colombo and the currently available ASYCUDA World infrastructure used as points of integration. The third stage must aim at public procurement, the accountability dividend is the greatest but the institutional change management demands are the most significant. A systematic stakeholder engagement exercise must be conducted before every phase and a legal and regulatory scrutiny of the phase must be conducted to provide enabling policy environment2. Policy and Regulatory EnablersThe Government of Sri Lanka should enact a Digital Evidence Act that explicitly recognizes block chain records as legally admissible evidence in commercial and regulatory proceedings. A national data governance framework should establish clear rules on data ownership, access rights, and privacy protections applicable to shared block chain platforms. The ICTA should be mandated and resourced to develop interoperability standards for block chain systems deployed across government agencies, preventing the emergence of incompatible parallel systems.Capacity building programmes, co-designed with industry associations, academic institutions, and international development partners, should target supply chain actors at all levels, with particular attention to primary producers, SMEs, and government procurement officers. Incentive structures, including preferential credit terms and export certification recognition for block chain-compliant supply chains, would accelerate voluntary adoption and reduce the dependence on regulatory mandates.ConclutionThe block chain technology is a plausible and technically developed remedy to the lack of transparency and accountability that has historically restricted the effectiveness, integrity and competitiveness of the supply chains in Sri Lanka. Its decentralized design, unalterable record keeping, and automation of smart contracts perfectly match the governance issues that have been reported in tea, apparel, port logistics, and public procurement sectors analyzed in this paper.Nevertheless, technology is not enough. To understand the transformative power of block chain in Sri Lanka, a concerted effort is needed in regulatory change, digital infrastructure, capacity building, and multi-stakeholder governance design. The roadmap of phased adoption that this paper suggests offers a systematic approach to ambition and realism that focuses on high-readiness areas and establishes the institutional frameworks of wider deployment.
Naval & Maritime Academy Logistics Conference - 2026209Since Sri Lanka is going through the post-crisis economic recovery and aims to enhance its presence in global value chains, digital supply chain infrastructure investments would be a high-paying opportunity to enhance trade competitiveness, institutional responsibility, and stakeholder trust at the same time. Considerably designed block chain can be one of the pillars of this changeAcknowledgementThe authors admit that the institutional knowledge that was used in this study was supported by the Naval and Maritime Academy, Trincomalee, and Sri Lanka Customs. The Information and Communication Technology Agency of Sri Lanka also receives appreciation due to documentation of the Sri Lanka Block chain InitiativeREFERENCESAbeyratne SA and Monfared RP (2016) Blockchain ready manufacturing supply chain using distributed ledger. International Journal of Research in Engineering and Technology, 5(9), 1-10.Atzori M (2015) Blockchain technology and decentralised governance: is the state still necessary? SSRN Working Paper 2709713.Kshetri N (2018) Blockchain’s roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80-89.Nakamoto S (2008) Bitcoin: a peer-to-peer electronic cash system. Bitcoin White Paper. Available at: <https://bitcoin.org/bitcoin.pdf>Saberi S, Kouhizadeh M, Sarkis J, et al (2019) Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117-2135.
Naval & Maritime Academy Logistics Conference - 2026210INTENTIONALLY KEPT BLANK
Naval & Maritime Academy Logistics Conference - 2026211THE ROLE OF BLOCKCHAIN TECHNOLOGY IN ENSURING TRANSPARENCY AND ACCOUNTABILITY IN SRI LANKA’S SUPPLY CHAINSLieutenant Commander (S) MH VidurangaLong Logistics Management Course No.10Naval & Maritime AcademyAbstractTransparent supply chain governance is one of a essential element of the Clean Logistics 2030 framework, which is aiming to transform Sri Lanka’s logistics systems through digital advancement, green transformation and accountable management. This paper reviews the current weaknesses in governance process in Sri Lanka’s public and defence logistics, which is mainly focusing on fragmented planning, limited digital traceability and weak oversight. In line with the principles of Clean Logistics 2030, the paper suggests a practical governance framework consisting of three interconnected components: standardized procedures, digital traceability and performance based monitoring. The framework is designed to reduce inefficiencies, prevent losses and build trust among stakeholders. Some recommendations for adopting this governance system involve phased adoption of digital tracking systems, regular independent audits and capacity building for logistics personnel. The paper concludes that transparent governance is not merely a compliance requirement but a strategic asset for national resilience and prosperity.Keywords: Supply chain governance, transparency, Clean Logistics 2030, digital traceability, Sri Lanka logistics, performance monitoring IntroductionLogistics governance determines how we should planned, procured, stored and distributed the resources. Sri Lanka as a strategically located maritime nation, the effectiveness of logistics systems has a direct impact on trade facilitation, public service delivery, and defence readiness. The Logistics Conference Trincomalee 2026 concept paper has discussed that weak governance structures have led to inefficiencies and losses in supply chains since the bigining. These problems come because of poor planning, not enough digital integration, and gaps in accountability. The newly established national vision “A Thriving Nation, A Beautiful Life” calls for logistics systems which are not only effective but also to be open and reliable. Clean Logistics 2030 has discussed the complete plan for how to make this change happen. This paper focuses on the third pillar of the three pillars: digital advancement, green
Naval & Maritime Academy Logistics Conference - 2026212transformation, and transparent supply chain governance which was identified in the concept paper. With transparent governance, every part of the logistics chain can be seen, checked. If there is no transparency, even the best digital tools and green initiatives can fail because resources may be wasted.As a shipping hub in the Indian Ocean Sri Lanka has put even more strain on its logistics infrastructure. Ports, military bases, government warehouses, and commercial distribution networks to work well there should be good governance. When governance fails, it will effects not only to the government, they also affect national security, the economy, and the quality of public services. Hence, transparent governance is not just a minor concern, it is a key part of national growth.This paper aims to address the following questions: How can Sri Lanka enhance transparent supply chain governance in accordance with the Clean Logistics 2030 framework?. First the paper talks about the current governance problems. After that it suggests a useful three part framework and finally discuss how to put it into action in both the public and private sectors.Current Challenges in Supply Chain GovernanceThe concept paper discussed several structural weaknesses in Sri Lanka’s logistics systems. These kind of challenges happen in the every where whether it is a defence industry, commercial and public supply chains. Before giving solutions, it’s necessary to understand these problems.1. Fragmented Planning and Lack of IntegrationIn many Sri Lankan organizations, logistics planning is carried out individually. Different departments handle their own procurement, storing, and distributing without interconnecting each other. Because of this mismatch, there are duplicate orders, stock imbalances, and missed chances to buy in bulk. So, one warehouse might have too extra stock while another might not have enough. If there is no any integrated planning system, these kinds of mismatches stay hidden until they slow down their operations.The effects of poor planning go beyond waste. When there is no interconnection, businesses can’t quickly respond to changes in demand. Because the stores are not connected, a shortage in one store cannot be met by surplus stock in another. This structural gap is especially harmful in defence logistics, where the speed and reliability of supply directly effect on operations.2. Limited Digital IntegrationAlthough Some companies have started using digital tools, still most logistics records are kept manually or in separate spreadsheets. It’s not possible to track shipments,
Naval & Maritime Academy Logistics Conference - 2026213inventory levels, and consumption patterns in real time. The concept paper highlights that digital integration connects demand planning, procurement, transportation, and warehousing into one system. Without this kind of integration, decision makers have to use old or incomplete information. This is leading to mistakes, delays, and even fraud.It also makes it difficult to learn from past patterns. When data is entered in manual records or systems that don’t communicate to each other. So it cannot use to find patterns in problems that keep coming, changes in demand during certain times of the year, or trends in supplier performance. So, organizations still make choices based on gut feelings and past experiences instead of facts, which is having chance of making expensive mistakes.3. Weak Oversight and AccountabilityThere must be clear rules and consequences for breaking the rules for governance to work. In most of Sri Lankan supply chains, the rules are either not strong enough or not followed. Audits might not happen very often, and people often don’t follow the recommendations made by the audit. There is no standardized framework for performance monitoring that keeps people responsible for logistics results. Because of this, inefficiencies continue and the same problems happen every time.Poor oversight also affect for misconduct to go unnoticed. When there are no accurate records of what was ordered, received, or issued, it’s hard to identify if losses are due to poor planning or intentional theft. There can be no accountability without visibility. Visibility needs both standardized procedures and regular record keeping.4. Vulnerability to Economic and Operational ShocksRecent changes in the economy and problems arising in global supply chain have shown these weaknesses in governance. When there is resource scarcity, systems that aren’t clear tend to go in informal channels over fair channels. This makes people less likely to trust public. For resilience, a transparent governance is not a luxury; it is a must.Sri Lanka’s recent economic crisis has shown us how weak supply chains can become when there aren’t enough good governance structures. Not only there were not enough foreign exchange to buy essential goods, but the distribution systems also didn’t have the transparency which didn’t prioritize needs and reliable stock movement tracking. To build resilience, we need more than just resources, it should need to change how we govern.A Framework for Transparent Supply Chain Governance Based on Clean Logistics 2030Clean Logistics 2030 gives three main ways to make governance more transparent. They are standardized procedures, digital traceability, and performancebased monitoring. All these components work together to make a complete framework. Below is a description of them.
Naval & Maritime Academy Logistics Conference - 20262141. Standardized ProceduresStandardization means every logistics faction follows a written, publicly available set of rules. This is for demand forecasting, procurement, receiving, storing, issuing, moving, and disposal. There are many benefits to having such procedures.a. Reduced discretion: When they are clear, individuals cannot arbitrarily change quantities, suppliers or prices.b. Facilitated training: New comers can learn the system quickly because the steps are written.c. Enabled auditing: Auditors can compare actual practices against the standard.Sri Lanka needs to introduce standard procedures for each logistics function. These procedures must be reviewed and updated regularly. They should also be available to all appropriate stakeholders.Standardization also helps different departments work together. When different departments use the same procedures, they can share information, resources, and help each other in emergencies. This ability to work together is a strategic advantage.2. Digital TraceabilityDigital traceability means that all transactions in the supply chain are stored in a integrated digital system. The concept paper highlights that digital traceability is an important part of transparent governance. Digital traceability gives solutions to questions such as: When did you order this? Who gave approval for the purchase? Where is it now? Who got it?. The system keeps auditing in case there is a mistake. This makes it less likely that people will lie or make mistakes because every action leaves a digital footprint.Digital traceability helps to make better plans, in addition to holding people accountable. When the system keeps track of how quickly items are using, how often orders get late, and which suppliers deliver on time, managers can make better decisions about which suppliers to choose and how to forecast demand. In Sri Lanka, it is not need to implement full digital traceability at once. A phased approach can start with important or high value items like fuel, spare parts, and medicines. And then gradually move on to all categories.
Naval & Maritime Academy Logistics Conference - 20262153. Performance-Based MonitoringPerformance based monitoring means that all departments are evaluated based on measurable indicators, and the results are used to make things better. The concept paper highlighted performance based monitoring as a part of Clean Logistics 2030.These indicators should be tracked regulerly and reviewed by senior management. Departments that perform well can be recognized, while giving special attention to others. These performance data should also be shared with oversight bodies to enable external accountability. The best thing of performance based monitoring is this can change the way logistics managers work from being reactive to being proactive. Instead of waiting for problems to get worse, managers can identify problems early and take action before they cause a lot of damage. This method also makes it easier to explain how resources are being used because decisions are based on actual results instead of guesses.4. How the Three Components Work TogetherStandardized procedures explain us what to do. Digital traceability is keep tracking of what really happens. Performance based monitoring is looking at both and takes action to fix the problems. Digital traceability identify lapses when there are no standard procedures. If there is no digital traceability, performance based monitoring depends on data that isn’t accurate. Standardized procedures and digital tools lose their usefulness if performance isn’t monitored. So, the complete framework needs to be take into action.The interdependence of these components means that partial implementation will gives partial results. Organizations that invest in digital systems without standardizing their procedures will find that the system records are inconsistent. On the other way around standardize procedures without keeping an eye on how well they work will also have incomplete results. The discipline of implementation those is just as crucial as the framework’s design.Implementation Strategy for Sri LankaTo take the suggested framework into action it is required to follow a planned step by step process. The following plan is suggested for logistics functions in the public sector including defense and private sector.1. Phase 1: Assessment and Standardization (First 6 Months)a. Conduct a baseline assessment of prvailing logistics procedures in each major institution.
Naval & Maritime Academy Logistics Conference - 2026216b. Identify gaps and areas where procedures are missing or outdated.c. Develop standardized procedure manuals for procurement, warehousing, inventory management and distribution.d. Train all logistics staff on the new procedures.The baseline assessment is the most important part of Phase 1. There should be structured interviews with logistics staff at all levels, a physical check of current records, and an audit of physical stock levels against recorded stocks. The results will show not only shortcomings in procedures but also cultural attitudes towards governance that will need to be changed through training and leadership.2. Phase 2: Digital Traceability Pilot (Next 6 Months)a. Select one or two high value item categories (e.g., fuel, vehicle spares) for a pilot project.b. Implement a basic digital tracking system using barcodes or QR codes and a central database.c. Integrate the tracking system with existing procurement and inventory records.d. Run the pilot for at least three months, evaluate results and refine the system.Here, the pilot phase has two objectives. It analyses whether the digital traceability is possible in the given working context and gives personnel confidence that the system will work and be valuable. Before a wider implementation, the lessons learned during the pilot should be carefully written down and used to improve both the technology and the procedures.3. Phase 3: Implementation and Performance Monitoring (Next 12 Months)a. Expand digital traceability to all item categories and all locations.b. Define a set of key performance indicators (KPIs) based on the framework.c. Establish a monthly performance review process at unit and institutional levels.d. Conduct independent audits every six months using the standardized procedures and digital records.
Naval & Maritime Academy Logistics Conference - 2026217D. Phase 4: Continuous Improvement (Ongoing)a. Use performance data to identify recurring problems and revise procedures accordingly.b. Upgrade digital systems as new technology becomes available (e.g., blockchain for enhanced tamper resistance).c. Publish anonymized performance summaries to build public trust and encourage peer competition.Continuous improvement is not something that is doing for a short time, it is something do for the entire life time. When businesses develop logistics environments change too. The framework must be handled like a living real time system that is monitor at and changed on a frequent basis. Organizations that treat governance as a onetime function instead of a continuous discipline will see that the success they gained in the beginning slowly reducing if they don’t keep an eye on it.Recommendation for Policy and PracticeBased on the framework and implementation strategy, the following specific recommendations are proposed for Sri Lanka’s public and private sectors.1. For Government and Defence Institutionsa. Mandate the use of standardized logistics procedures across all departments and commands.b. Allocate budget for digital traceability systems, starting with critical supply chains (fuel, medical supplies, defense spares).c. Establish an independent logistics oversight unit responsible for auditing and performance monitoring.d. Include transparent supply chain governance as a criteria in annual performance evaluations for all officials who handles public money.2. For Private Sector and Corporate Stakeholdersa. Adopt the same framework to improve supply chain efficiency and reduce losses.b. Share best practices with public sector counterparts through the platform created by the Logistics Conference.
Naval & Maritime Academy Logistics Conference - 2026218c. Invest in interoperable digital systems that can link with government supply chains where needed (e.g., disaster response logistics).Private sector involvement is very important since a large part of Sri Lanka’s economy is run by businesses. Private companies are involved in port handling, freight forwarding, cold chain logistics, and last mile distribution. The rules that regulate these companies have a direct impact on the integrity of the whole system. 3. For Educational Institutions and Professional Bodiesa. Include transparent supply chain governance in logistics and management curricula.b. Conduct research on the effectiveness of digital traceability in Sri Lankan conditions.c. Organize workshops and certification programmes for logistics professionals.Sustainable governance reform requires a generation of logistics professionals who understand and value transparency. Educational institutions play a long term role by adding governance principles into undergraduate and postgraduate programmes. Professional organizations also can help with this by giving out certificates that show a person’s ability to manage a transparent supply chain.ConclutionSri Lanka need to have clear supply chain governance in order to achieve its vision of “A Thriving Nation, A Beautiful Life”. Standardized procedures, digital traceability, and performance based monitoring allows it to see how to move forward with the Clean Logistics 2030 framework. These parts support each other and can be put into place one at a time.Evidence from Sri Lanka’s experience and from similar kind of economies indicates that governance change gives quantifiable benefits. The investment in reform is worth because it leads to reduced procurement cost, less stock shortages, quick reaction times, and more trust from the public. These are not goals that people want to achieve, they are real results that other countries have already achieved.The Logistics Conference Trincomalee 2026 is a good opportunity to get everyone on the same stage and agree on this framework. Sri Lanka can cut down on waste, avoid losses, establish trust, and make the country more resilient by improving governance. The suggestions in this paper are doable and make sense. What is needed now is strong leadership, teamwork, and a willingness to see openness as a strategic advantage.
Naval & Maritime Academy Logistics Conference - 2026219REFERENCESAmaratunga D, Haigh R and Jayasena V (2010) ‘Transparency and accountability in public procurement: A Sri Lankan perspective’, Journal of Public Procurement, 10(3), pp. 365–396.Central Bank of Sri Lanka (2022) Annual Report 2021: Economic and Social Statistics, Colombo: Central Bank of Sri Lanka.Gunasekaran A and Ngai E W T (2014) ‘Expert systems and artificial intelligence in logistics and supply chain management’, Expert Systems with Applications, 41(1), pp. 1–4.Jayasuriya S and McCawley P (2019) ‘Supply chain governance in developing countries: Lessons from South Asia’, Asian Development Review, 36(2), pp. 112–138.Ministry of Defence Sri Lanka (2021) Defence Logistics Policy Framework, Colombo: Ministry of Defence.Naval & Maritime Academy (2026) ‘The concept paper of the Logistics Conference Trincomalee – 2026: Clean Logistics 2030’, Trincomalee: NMA.Ramanayake S and Weerawardena J (2018) ‘Digital transformation in public sector supply chains: Opportunities and challenges for Sri Lanka’, Sri Lankan Journal of Management, 23(1), pp. 45–67.United Nations Development Programme (2020) Transparent Supply Chains for Sustainable Development, New York: UNDP.Wickramasinghe V and Perera L (2017) ‘Performance measurement in public logistics: A framework for accountability’, Logistics Research, 10(1), pp. 1–15.
Naval & Maritime Academy Logistics Conference - 2026220INTENTIONALLY KEPT BLANK
Naval & Maritime Academy Logistics Conference - 2026221TRANSPARENT PROCUREMENT REFORM IN SRI LANKA’S PUBLIC SECTOR: A COMPARATIVE ANALYSIS OF CURRENT REFORMS IN PROCUREMENT WITH GLOBAL BEST PRACTICESLieutenant Commander (S) KSND KularathneLong Logistics Management CourseNaval & Maritime AcademyAbstractThe public sector procurement in Sri Lanka still remains in critical and under reformed piler in national governance. The existing weaknesses like limited digitalization, fragmented oversight and the gaps in public accountability make consequences like improper allocation of resources and lack of institutional credibility following the economic crisis in last few years. In this paper it is examined the current state of transparency in the Sri Lakan public sector procurement and compare it against the best performing three economies in the world: South Korea, Singapore and Estonia. In this study, it is identified the structural deficiencies in Sri Lankan public procurement governance and draws the global best practices for proposing a phased road map for the reformation using a comparative analytical framework. The finding of the study demonstrates that full e procurement adoption and integration, open contract data, strong regulatory framework and independent oversights are the key enablers for the Clean Logistics 2030 agenda. The paper clearly emphasizes that the transparent procurement is not just an administrative process but an essential national strategy for the economic recovery, supply chain resilience and institutional trust. Keywords: Transparent Procurement, Supply Chain Governance, E Procurement, Public Sector ReformIntroductionPublic Sector Procurement can be considered as one of the most critical interfaces between the state and the country’s economy. The government procurement in Sri Lanka accounts for approximately 15% of GDP annually directing resources across infrastructure, defence, health, education and logistics sectors (World Bank, 2023). For several decades, the public procurement system in Sri Lanka has been under the influence of fragmented legal framework, poor digitalization, limited transparency and lack of accountability which directly undermine the efficient governance of the supply chain. The economic crisis during past few years clearly demonstrates the negative consequences of inefficient public procurement governance. The supply chain disruptions, inflating of procurement cost and mismanagement in government institutions which were the main allegations in public procurement drew the attention of International Monetary Fund (IMF) extended facility program and thus subjected to structural reforms in public financial management
Naval & Maritime Academy Logistics Conference - 2026222and procurement system. This context requires a meaningful regulatory framework and a political will for achieving the expected outcome. In the Green Logistics 2030 framework, it has been positions transparent supply chain governance as one of the three foundational pillars for national logistics excellence. Transparency in procurement is the major component of transparent supply chain. It determines how the resources are allocated across the supply chain, how the accountability is enforced and how the credibility on public institutions be build up in citizens and international stakeholders. In this paper, it is discussed the current level of public procurement governance in Sri Lanka compared to world’s best practices and what reforms are needed to be achieved in Clean Logistics Objectives in 2030 by comparing and contrasting it with three best performing economies in the world and identification of key gaps and finally, the possible reforms to be implemented within the system is discussed. Background For Procurement Transparency And Supply Chain GovernancePublic procurement plays a vital role in an any economy in the world and it has become a key component which decides the economic wellbeing. One of the key critical success factors which decides a country’s development is effective and efficient utilization of public funds in an economical manner. Therefore, sound procurement procedures enhance the spending of public funds meaningful manner while maintaining the accountability, transparency, providing equal opportunity for all concern and sustainability. Transparent procurement governance refers to a system in which the rules, processes, and decisions of public purchasing are open, consistent, accountable and subject to independent review (OECD, 2021). The transparency is measured in three aspects in this context as process transparency, information transparency and accountability transparency. In the context of supply chain governance, procurement acts as the entry point of it. Inefficient procurement decisions due to corruption, conflict of interest and opacity create unfavorable consequences to a state through delivery delays, increased cost due to unrealistic prices and lack of price competition, substandard goods which lead to the wastage of public resources and thus undermine public trust. With a transparent procurement governance, the real time traceability, competitive pricing and better supplier management can be achieved and through that the resources can be utilized in optimum level which is a key component of maintaining public trust. The matter of public procurement reform emerged and came in to discussions globally after 2020 due to the economic recission taken place globally due to the COVID 19 pandemic. There, the main concern was to meet international standards set
Naval & Maritime Academy Logistics Conference - 2026223by organizations like World Trade Organization (WTO), Organization for Economic Cooperation and Development (OECD) and Open Government Partnership. Many worlds’ leading economies at present have adopted to fully digitalized and open data procurement environment. In Sri Lanka, the existing trends are still behind with global changes which creates a gap that negatively affects on the economic resilience of the country.Current State of Procurement Governance In Sri LankaThe public procurement in Sri Lanka is primarily governed by National Procurement Commission (NPC), which has been established under article 156 (B) 1 of the Constitution of Democratic Socialist Republic of Sri Lanka. NPC is mainly involving in the public procurement through policy formulation, monitoring and investigation and reporting on procurement related matters to the parliament. In following table 1, it maps the key procurement milestones in Sri Lanka along with their outcomes. Although the formal and regulatory structures were there, the implementation process is still can be seen as inconsistent due to discretionary effects of tender procedures, slow and informal appeal process, manual execution of supplier blacklisting and other non automated processes. Open contract data which is one of the global standards in transparent procurement was largely absent from the Sri Lankan procurement system.By 2026, procurement governance of Sri Lanka is undergoing with a significant technology driven transformation which is aimed at enhancing transparency, reducing corruption and ensuring accountability in public spending which largely governed by NPC and the digitalization initiatives by the treasury. The main focus of this transformation is to implement electronic government procurement (e-GP) for eliminating the inefficiencies associated with traditional paper based systems to adhere strict economic reforms in post crisis. (PROMISE, no date).
Naval & Maritime Academy Logistics Conference - 2026224The economic crisis in 2022 brought the weaknesses in procurement in to sharp relief. The Department of Auditor Geneal reported critical and significant irregularities in procurement within state owned enterprises and in infrastructure contracts which has been calculated a loss in billions of rupees during past years. The IMF programme’s structural benchmarks specifically target improvements in procurement oversight and financial management as conditions for continued support (IMF, 2023).Despite of the challenges, the current movement to reform the structure can be taken as significant milestone. The Anti Corruption Plan (2023) and the Public Financial Management Program are showing a renewed commitment to the term transparency. However, the key issue here is whether this commitment will lead to a real structural change in procurement system in Sri Lanka to be inline with the international standards. Following are the key aspects in procurement governance in Sri Lanka.1. Mandatory Electronic Procurement (e-GP)Starting from 1st July 2026, all the ministries in central government, departments, agencies and district secretariats are informed to use Integrated Treasury Management Information System and for raising purchase orders for the suppliers. The treasury has put a notice to all suppliers stating that they won’t take any responsibility on non system generated purchase orders in settling of claims (PROMISE, no date). This can be identified as one of the key strict shifts towards to the digital accountability. 2. Strengthened Regulatory FrameworkNPC has published a new guideline, manuals and the circulars to guide procurement w.e.f. 1st January 2025 incorporating with new technological implementations with the aim of enhancing transparency and accountability within he processes. The budget 2026 also emphasizes the need for adhering to these established rules and regulations. 3. Sustainability in Green ProcurementThe Ministry of Environment is currently implementing Green Public Procurement (S/GPP) guidelines incorporation with international partners by focusing on integrating environment concerns in to the procurement process.4. Anti Corruption InitiativesFollowing changes to the administration and the accountability concerns, the unsolicited proposals in high value tenders and focused on enforcing the competitiveness within the tender procedure.
Naval & Maritime Academy Logistics Conference - 2026225COMPARATIVE ANALYSIS WITH WORLD’S BEST PRACTICES1. South Korea – KONEPSThe Korea Online E Procurement System (KONEPS) in South Korea has been widely recognized as the world’s most comprehensive E procurement platform which was launched in year 2002 and upgraded continuously. Up to now KONEPS handles over 95% transactions relevant to the public procurement covering more than USD 100 Billion of annual contracts (Kim and Park, 2021). This system has been developed for the execution of demand planning, tendering, contract awarding, delivery tracking and payment in to a single eco system ensuring real time visibility throughout the supply chain. The key features in this system include automatic supplier blacklisting, electronic bid opening, real time audit trials and full public access to all the awarded contracts. The corruption perception index rank in South Korea 50th in 2012 to 31st by 2025 with the implementation of KONEPS which led to a major institutional reform. For Sri Lanka also these implementations can be directly applied for enhancing the existing transparency level and to improve supply chain visibility. 2. Estonia – E-RiigihangeThe e Procurement system in Estonia has achieved a universal digitalization of their public procurement system since year 2017. All the contracts above minimal thresholds are published in an open access digital format through this system and it is characterized by a strong commitment to open government data. This system simplifies the administrative process by using advanced digital platforms for enhancing transparency, efficiency and public access to information including contract award prices, supplier identities and performance records. This information is freely accessible for all the citizens, journalists and researchers (Kitsing, 2022).Estonia’s experience demonstrates that the expected outcome through implementing e procurement could be achieved even for a small nation with limited resources altogether with political will and institutional commitment. By 2025, Estonia remains in 12th place in Global Corruption Perception Index. This model is largely applicable to Sri Lanka since it emphasizes the citizen’s access to the procurement data which leads to democratic accountability mechanism which currently absent within the Sri Lankan framework. 3. Singapore – GeBIZThe Electronic Business Platform (GEBIZ) of Singapore’s government has been developed by providing a centralized platform for all the government procurement activities. In the procurement system of Singapore, only the small value procurement up to S$ 6,000 has been allowed to purchase directly from known suppliers. For the
Naval & Maritime Academy Logistics Conference - 2026226procurement value between S$ 6,000 to S4 90,000 quotation to be obtained at least from three suppliers via GEBIZ and for the procurement above S$ 90,000 open tender procedure is followed for which anyone can participate and they follow two stage process to shortlist the suppliers based on their capabilities before invited for bid. Singapore’s Corrupt Practices Investigation Bureau (CPIB) operates independently and with strong enforcement powers, providing robust external oversight of procurement integrity (Quah, 2021). This model highlights the importance of institutional independence in procurement and the CPIB operates in outside the normal line ministry structure and it reduces the political interference to ensure the accountability. In the proposed independent Anti Corruption Secretariat established under 2023 action plan in Sri Lanka represents a step towards this direction. But it lacks in investigative and enforcement power of comparable institutions.The comparative data at above Table 2 demonstrates the current deficiencies in the procurement governance system of Sri Lanka compared to key performing countries. The coverage of e procurement, open data access, robustness in audit trials and in compliant mechanisms, Sri Lanka still significantly demonstrates a lower state than the benchmarking nations. But presently, Sri Lanka is in the rank of 107 and showing a progressive nature with the adoption of new transformation.Gap Analysis and Key FindingsAlthough the procurement system in Sri Lanka is undergoing with gradual transition in the aspect of transparency with the implementation e-GP, ePMS and ITMIS
Naval & Maritime Academy Logistics Conference - 2026227by focusing on the enhancement of digitalization and public oversight and to reduce vulnerabilities, still the current transparency level remains moderate and uneven level by reflecting structural and institutional limitations.Therefore, the existing transparency level can be characterized as partially transparent but systematically constrained. The introduction of e-GP has improved accessibility to procurement notices, tender information and standard documents. The PGL 2024 and Green Public Procurement Policy (GPP) have clearly introduced rules and sustainability criteria for procurement decision making by incorporating social, environment costing. Also, the digital initiatives like Government Digital Payment Platform (GovPay) enhance the transparency in public financial transactions. But still the procurement processes are not fully digitalized end to end and the disclosure of information remains inconsistent across the institutions and the real time monitoring and audit trials are fragmented and limited within the system. The following major gaps can be identified relevant to the transparency in procurement system.1. Fragmented Digital EcosystemStill the e-GP and ITMIS system are not properly integrated and thus the procurement data is not automatically linked with budgeting, payment handling and contract execution. This condition limits the traceability across the procurement life cycle which resulting the transparency to be limited to process level which only focus on individual steps of procurement not to the system level which exists within entire procurement process.2. Limited end to End VisibilityIn Sri Lankan current procurement system is lacking with real time public access to full procurement cycle like KONEPS and GeBIZ in which all the steps like planning, tendering, awarding, contracting and payment are integrated. Therefore, the data provided is always be static, incomplete and delayed and this make public procurement reactive rather than being proactive. 3. Limited Supplier and Public EngagementStakeholders like unregistered potential suppliers and citizens can not fully access the system to obtain procurement data and the analytical dash boards are still underdeveloped. Therefore, the transparency is not actionable and accessible although it is available.4. Weak Link to Sustainable LogisticsAlthough it has been introduced green procurement policies, still the environment criteria have not been integrated in to the digital procurement system. The technical evaluation also considers only the technical and financial aspect rather than taking social
Naval & Maritime Academy Logistics Conference - 2026228and environmental cost taking in to consideration. Therefore, lifecycle tracking of gods relevant to the facts like sourcing, transport and emission is still omitted when considering cost. Policy RecommendationsBased on the analysis relevant to the current reforms going on in the public procurement in Sri Lanka and the key insights from the best performing economies in the world in public procurement, following improvements can be recommended to implement for enhancing the transparency and through that enhance public accountability regarding better utilization of public resources and ultimately achieve one of the main objectives of Clean Logistics 2030.1. Build a Single Window by Integrating all ModulesSystem integration enables quick and correct decision making and ensure transparency by enabling end to end visibility. Like KONEPS in South Korea, the already implemented systems like e-GP, ITMIS and ePMS can be integrated as a national procurement platform. Then the entire process including planning, bidding, contract and payment is visible in one platform ensuring complete financial and procurement transparency.2. Introduce Real Time Public Procurement DashboardWithin the existing procurement system of Sri Lanka, the transparency can be seen only in the process level but not within the entire system. The real time public visibility of data is still absent there. The KONEPS is currently providing real time data to the general public including bid opening and the results. The public procurement portal should be developed to produce live tender status, bid comparison summaries and contractor performance ratings enabling all the general public to grab the information in real time.3. Introducing Supplier Performance Evaluation System and Implement Automatic Supplier BlacklistingStill in Sri Lankan system, there is no a structured way of vendor performance tracking and therefore same contractors are repeatedly awarded the contracts despite of their poor performance. This implementation enables to easy track the best performing suppliers by evaluating suppliers using criteria like delivery time, quality and contract compliance. Since the supplier blacklisting is still done by manually, that also has to be automated by introducing the above mentioned criteria to the system.
Naval & Maritime Academy Logistics Conference - 20262294. Strengthening Institutional and Legal FrameworkThe existing legal framework can be improved by introducing mandatory disclosure laws apart from existing regulations under PGL 2024, regulations imposed by NPC and National Audit Act. The requirement for regulating the procurement under a parliament Act is mandatory with these new reforms. The essential disclosures to be governed through that procurement Act for ensuring transparency further.5. Introduce Life Cycle Costing in Technical Evaluation ProcedureLife Cycle Costing is one of the major concerns which can be implemented under transparency since it forces government entities to publicly define and justify the long term value of a procurement rather than just the initial price. Here, the initial cost, operational cost, maintenance cost, disposal cost, social and environment cost should be taken in to consideration while evaluating. Those measures to be entered in to the existing tender evaluation criteria for better transparency on the total cost associated with the procurement.6. Improve Public Awareness on Procurement by Citizen Oversight and Feedback IntegrationImproving public awareness and citizen engagement is important in strengthening the transparency. For that the government must take action to enable citizen oversight through the digital platforms and through incorporating feedback mechanisms like complaint systems enabling stakeholders to report issues. Through that, the transparency can be enhanced and public trust can be built up.ConclusionThe public procurement currently is in a critical transition point where the current reforms are demonstrating positive signs of transparency and public accountability. Through this paper, it has been demonstrated procurement governance is the foundation of supply chain transparency. Without fully integrated, fully digitalized, independently overseen and public oversight procurement system, the end to end logistics excellence, supply chain resilience and institutional credibility which are the prime objectives of Clean Logistics 2030 will not be able to achieve.The comparative analysis with best performing economies in the world emphasizes that most of the benchmarking can be achieved under the current context up to a considerable level. These nations have proven that investment in digital infrastructure, proper integration, institutional independence, open access for data and political will are the main drivers of transparency and they have achieved the best performance through these implementations. The current reforms in Sri Lanka are driven by the requirement of IMF and it facilitated for a rare opportunity to change. The Clean Logistics Platform 2030 set and example for both defence and public sector emphasizing the value of transparent, digital and accountable procurement in its supply chain and Sri Lanka Navy also can set an example to show that Clean Logistics is practical and achievable and persuade others to follow.
Naval & Maritime Academy Logistics Conference - 2026230REFERENCESIMF (2023) Sri Lanka: Third Review under the Extended Fund Facility Arrangement. International Monetary Fund. Available at: https://www.imf.org/en/Publications/CR/Issues/2023 (Accessed: 3 April 2026). Kim, J. and Park, S. (2021) ‘Digital government and procurement transparency: Lessons from South Korea’s KONEPS’, Government Information Quarterly, 38(3), pp. 1–12. Kitsing, M. (2022) ‘Open government data and public procurement: The Estonian experience’, International Journal of Electronic Government Research, 18(1), pp. 45–62. National Procurement Commission of Sri Lanka (2023) Annual Report 2023. Colombo: NPC. OECD (2021) Government at a Glance 2021: Public Procurement. Paris: OECD Publishing. Available at: https://www.oecd.org/gov/government-at-a-glance-22214399.htm (Accessed: 15 March 2026). PROMISE (no date) Electronic Government Procurement (eGP) System. Available at: https://promise.lk/ (Accessed: 4 April 2026). Quah, J. S. T. (2021) ‘Controlling corruption in Singapore: Lessons for other Asian countries’, Asian Education and Development Studies, 11(1), pp. 58–73. Transparency International (2026) Corruption Perceptions Index 2025. Transparency International. Available at: https://www.transparency.org/en/cpi/2025 (Accessed: 4 April 2026). Transparency International Sri Lanka (2022) Procurement Integrity Assessment Report 2022. Colombo: TISL.