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Implementation of TradeLens in Sri Lanka

using Blockchain Technology:


A Case Study
Janaka Wijayasiri

United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific

Working Paper
No. 1 I 2023
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WORKING PAPER

WORKING PAPER
Implementation of TradeLens in Sri Lanka using Blockchain
Technology: A Case Study
WORKING PAPER
Janaka Wijayasiri1

Please cite this paper as: WORKING PAPER


Janaka Wijayasiri (2023). “Implementation of TradeLens in Sri Lanka using
Blockchain Technology: A Case Study”, UNNExT Working Paper Series No. 1, June
2023, Bangkok, ESCAP.
Available at https://unnext.unescap.org/WORKING PAPER

WORKING PAPER

WORKING PAPER

WORKING PAPER
1

WORKING PAPER
Trade Expert/Consultant. Email: Janaka.wijayasiri@gmail.com. The author would like to thank: Soo Hyun Kim,
Economic Affairs Officer, Trade Policy, and Facilitation Section (TPFS), Trade, Investment, and Innovation Division,
ESCAP; reviewers for their feedback on an earlier draft; and key informants, who took part in the study. The views
and opinions expressed in this publication are those of the author.

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WORKING PAPER
Abstract

The implementation of TradeLens, a blockchain-enabled digital platform that facilitates


the tracking and planning of shipping containers and related documents in the global
supply chain, in Sri Lanka was a significant development in the country's digital
transformation strategy for the shipping and logistics sector. This case study describes
the benefits, and challenges encountered during the implementation of the TradeLens
in Sri Lanka and recommends policies for utilizing and supporting such technologies.
According to stakeholders, the benefits of the platform included streamlined processes,
increased security and transparency, less paper wastage, fewer errors, and improved
visibility. However, the implementation also presented challenges, such as linking to
the ecosystem, internal resistance to change, resource allocation, and the economic
crisis in Sri Lanka. These challenges included convincing all partners to adopt the
platform, allocating resources for its implementation, and managing internal change,
which was costly and time-consuming. Despite the discontinuation of TradeLens in
2023, blockchain technology still holds promise for improving collaboration and
visibility in global supply chains. Therefore, it is hoped this case study will benefit
readers with lessons learned and recommendations that can be applied for
implementing such technologies and developing policies to support such technologies.

Keywords: international trade, trade facilitation, paperless trade, blockchain,


technology, shipping, digitalization, digitization
JEL Codes: F10, Q33

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Table of Contents
Abstract ......................................................................................................................... iv
Table of Contents .......................................................................................................... v
1. Introduction ............................................................................................................ 1
2. Background on TradeLens ................................................................................... 2
3. Methodology .......................................................................................................... 4
4. Findings .................................................................................................................. 5
4.1. Implementation of TradeLens in Sri Lanka ........................................................ 5
4.2. Benefits of TradeLens ......................................................................................... 7
4.3. Implementation Challenges ................................................................................ 8
5. Recommendations .............................................................................................. 10
References ................................................................................................................... 12
Annex 1: List of Key Informant Interviews (KIIs) .................................................... 14
Annex 2: Key Information Interview Guide.............................................................. 14

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1. Introduction

TradeLens is a blockchain-enabled digital platform for tracking and planning shipping


containers and related documents in the global supply chain developed by IBM and
Maersk (“About TradeLens | TradeLens,” n.d.). The platform aimed to facilitate
efficient, transparent, and secure information exchange throughout the global supply
chain by converting manual, paper-based documents, and time-consuming
administrative operations into digital ones. For example, TradeLens allowed an
original bill of lading2 to be digitally issued and moved electronically along the supply
chain involving the relevant parties. This eliminated the inconvenience of physically
sending documents from one party to the other through courier as well as the risk of
documents being falsified or misplaced, thereby removing the inefficiencies of the
manual procedure.
Sri Lanka is developing and putting into practice a comprehensive strategy for the
economy's digital transformation. The strategy encompasses a group of digitization
initiatives and organizations that have teamed up to tap into the potential of emerging
technologies for socioeconomic development. In this regard, TradeLens represented
a significant development in the digital transformation of Sri Lanka's shipping and
logistics sector.
However, after five years in operation, it was announced that TradeLens would be
discontinued at the end of the first quarter of 2023. The impact of the TradeLens
closure on Sri Lanka was minimal, given its early stages of implementation and lack of
active customers. While the failure of TradeLens is a stumbling block, blockchain
technology still holds promise for improving collaboration and visibility in global supply
chains (Cecere, 2022). Additionally, the findings from this case study on the
implementation of TradeLens in Sri Lanka provide valuable insights into the use and
implementation of blockchain technology, along with recommendations for policies that
could support the utilization of such technology.
Based on primary and secondary research, this paper will:
• describe TradeLens and outline its benefits, and compare it with the previous
process in place;
• highlight the challenges encountered in its implementation; and
• recommend policies to further implement and support emerging technologies
in Sri Lanka and other countries.

2A legal document issued by the carrier to a shipper that details the type, quantity, and destination of the goods
being carried

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2. Background on TradeLens

Global supply chains are complex, involving a large number of stakeholders and
numerous information and document transfers ("Shipping in the Age of Blockchain,"
2019). Many of the goods today are transported in containers by ships. Since
information is often locked up in organizational silos and trade processes are laborious
and manual, clearance is often prone to delays, and operations are challenging and
expensive. Thus, supply chains are inherently inefficient as they currently stand
("Shipping in the Age of Blockchain," 2019).
To address these challenges, IBM, a technology and blockchain leader, and A.P.
Moller-Maersk, an international container shipping and logistics company, came
together as equal partners to co-lead the development of an efficient and secure
method for conducting global trade using blockchain technology in 2017 ("Shipping in
the Age of Blockchain," 2019). In December 2018, the TradeLens platform was
launched (Jensen et al., 2019) and operated for five years until 2023. The overall
objective of TradeLens was to digitize the global supply chain ("About TradeLens |
TradeLens," n.d.) by connecting all parties in the global supply chain to a common
platform, sharing real-time information, fostering cross-organizational collaboration
and trust, and promoting innovation.
TradeLens was adopted by several major shipping companies and port operators
around the world (Jensen et al., 2019). To test the viability of a blockchain-based
platform for border management, TradeLens also teamed up with a number of customs
authorities around the world (WCO/WTO, 2022).
As of end-November 2022, TradeLens managed more than 3.5 billion events, 34
million documents, and 67 million containers annually, improving efficiency and
transparency in global supply chains (“TradeLens | Supply Chain Data and Docs,”
n.d.). It is claimed that TradeLens has reduced the time it takes to process a shipment
by 40 percent.
TradeLens leveraged the IBM Blockchain Platform, which is built on the open-source
permission blockchain known as ‘Hyperledger Fabric’3. This provided the benefits of
immutability, security, and traceability of shipping papers in the supply chain. Users of
TradeLens were known to the network based on cryptographic identities, in contrast,
to open, anonymous blockchains like cryptocurrency.
TradeLens consisted of three components:
• Ecosystem: A business network consisting of shippers, freight forwarders,
ports and terminals, ocean carriers, government authorities, customs brokers,
and more. Each party in the ecosystem shares information that can be
tracked, stored, and acted upon across the TradeLens platform.

3
Hyperledger Fabric is an open, enterprise-grade, distributed ledger platform. It features sophisticated privacy
safeguards that enable data sharing among the "permitted” or known network users (IBM, n.d.).

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• Platform. The TradeLens Platform is accessible via an open Application
Programming Interface (API) and brings together parties in the ecosystem
through a set of open standards. Hyperledger Fabric blockchain technology
and IBM Cloud enable the parties in the ecosystem to share information and
collaborate securely.
• Marketplace. An open Applications and Services Marketplace allows both
TradeLens and third parties to develop value-added services and applications
on top of the TradeLens platform.
Two products were offered on the platform: TradeLens Core and TradeLens eBL.
• TradeLens Core provided end-to-end visibility of containerized freight and a
tool for document collaboration with other partners.
• TradeLens electronic Bill of Lading (eBL) was an end-to-end digital solution
that provided shippers and carriers with a streamlined and secure process for
issuing, transferring, and surrendering original bills of lading.
According to existing literature ("Protecting Fragile Cargo," n.d.; "Expediting the Coffee
Trade," n.d.), the benefits of TradeLens include end-to-end visibility in the supply chain
on a single platform, better communication, and coordination within the ecosystem to
plan and mitigate risks, increased security through the digitization of documents,
reduced paper waste and savings on courier fees, and reduced processing time and
steps for sending and receiving documents.
Although TradeLens provided value to partners in the ecosystem, adoption by shipping
lines and ports was "sluggish" due to two interrelated issues (Jensen et al., 2019). The
first issue was that the first users of a new technology have no use for it until others
adopt it. The second issue was the hesitancy to accept blockchain-based solutions for
sensitive documents. There were several reasons for the latter: stakeholders in the
global supply chain were reluctant to share information on a platform if they were
competitors; some stakeholders were not open to changes due to fear of losing jobs;
and regulations blocked the use of digitized documents (Jensen et al., 2019).
Additionally, an assessment by the Canada Border Services Agency found that the
platform lacked the number of participants and useful information required for border
management (WCO/WTO, 2022).
After five years in operation, it was announced that TradeLens was discontinued at the
end of the first quarter of 2023 as “full global industry collaboration has not been
achieved. As a result, Tradelens has not reached the level of commercial viability
necessary to continue work and meet the financial expectations as an independent
business’’ (Maersk, 2022). While the failure of the TradeLens is a stumbling block to
making trade more seamless, blockchain technology still holds promise to improving
collaboration and visibility in the global supply chains (Cecere, 2022).

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3. Methodology

The paper adopted a qualitative approach, namely a case study, to examine the
implementation of blockchain technology, TradeLens in Sri Lanka 4. A qualitative
approach was used as the paper seeks to answer descriptive, exploratory, and
explanatory questions, outlined in the Introduction. It is an instrumental case study as
it provides insights into an event that the case represents – that is, the implementation
of cross-border electronic exchange of trade-related data via TradeLens, a blockchain
technology.
The case study was bounded by stakeholders who were using or in the process of
using TradeLens in Sri Lanka. Interviews in person or online were the main methods
of data collection, which were supplemented with documentation. Seven interviews
with 12 key informants lasting between 30 to 45 minutes were conducted in September
and October 2022 using a semi-structured guide developed for the study (See Annex
1 for the list of key informant interviewees and Annex 2 for the interview guide). Key
informants for the study included:
A. Terminal operators
South Asia Gateway Terminals (SAGT) became the first container terminal in Sri
Lanka to adopt TradeLens in 2020. According to Ted Muttiah, Chief Commercial
Officer of SAGT, "SAGT is firmly committed to embracing technology in our efforts
to constantly drive efficiencies towards an 'ease of doing business' customer
experience. The collaboration with TradeLens is a very important step forward in
strengthening our digital agenda and staying ahead of the curve when it comes to
digital transformation" ("South Asia Gateway Terminals Becomes First Sri Lankan
Terminal to Join TradeLens to Digitalise Supply Chains," n.d.).
TradeLens has allowed SAGT to bring together data from the entire global supply
chain ecosystem, including shippers, shipping lines, ports, and many more supply
chain players from around the world on one platform ("South Asia Gateway
Terminals Becomes First Sri Lankan Terminal to Join TradeLens to Digitalise
Supply Chains," n.d.). Benefits have included operational efficiency through better
visibility of container flows.
B. Carriers
A.P. Moller-Maersk which is not only a leading ocean carrier, but also developed
the digital platform, TradeLens jointly with IBM.
C. Exporters
Eswaran Brothers Exports, one of Sri Lanka’s premier tea suppliers, became the
first exporter to adopt TradeLens. TradeLens has allowed the exporter to digitalize

4The paper does not cover other recent efforts to digitalize trade in Sri Lanka (i.e., National Single Window, Trade
Portal)

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the bill of lading and manual-based process of sharing the document. This has
helped the company to reduce errors, improve security and mitigate any additional
costs due to delays in relaying documents whilst offering superior customer service.
D. Banks
National Development Bank (NDB) was the first bank in Sri Lanka to sign up for
TradeLens to provide digital finance to its customers, and exporters (“NDB
Becomes First Bank in Sri Lanka to Pave the Path to Digitalisation With Blockchain
Technology ‘TradeLens’ | Daily FT,” 2021). TradeLens has provided NDB access
to critical trade data to help automate manual verification processes, drive
transparency, simplify compliance, and streamline financial processing and
settlement. It has allowed NDB to fulfil the credit needs of its customers without any
risks of security and privacy breach.
E. Regulatory agencies
Sri Lanka Customs (SLC) has worked with UNCTAD to link ASYCUDA via the
ASYHUB application to TradeLens for the exchange of shipping information.
F. Developer of the platform
TradeLens
Documentation including press releases and articles relating to TradeLens and its
implementation was sourced through the website and interviews.
An inductive, thematic analysis was conducted on the data collected whereby common
themes/patterns were identified across the data (Rev, 2022). Further to the data
collection and transcription of the interviews, the following steps were undertaken:
reading the transcript whilst identifying any bias; annotating the transcripts to help
organize the data; conceptualizing the data to align the data with critical themes;
segmenting the data and analyzing the data; and writing up of the findings. A draft of
the paper was circulated amongst the key informants interviewed for the study to
validate the findings.

4. Findings

4.1. Implementation of TradeLens in Sri Lanka


Within South Asia, Sri Lanka has made modest progress in its implementation of
TradeLens since 2020. By October 2022, the main partners in the ecosystem in the
country were connected or in the process of being connected to the platform. At the
same time, the progress of connecting more customers was slow, as stated by a key
informant interviewee who is familiar with the overall implementation of TradeLens in
Sri Lanka: “Have we found enough customers in Sri Lanka? Probably not.”. More
specifically,

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• Terminal operators: SAGT and Colombo International Container Terminal
(CICT), the main port terminals in Colombo port were connected and in the
process of getting connected to the platform and sharing data provided by
carriers, respectively while the third terminal, Jaya Container Terminal (JCT) in
Colombo was in discussions with TradeLens.

• Customs: SLC is working with UNCTAD and German Federal Ministry of


Economic Cooperation and Development (BMZ) under a pilot project, Digitizing
Global Maritime Trade, which aims at reducing maritime trade costs by
improving customs administrations’ access to advance cargo information and
increasing efficiencies in customs clearance processes. Under the project, a
specialized data integration solution called ASYHUB is being developed by
UNCTAD’s customs reform and automation programme, ASYCUDA. The
TradeLens platform was engaged as a project partner, providing advance sea
cargo data to test the data integration with ASYHUB. The pilot project launched
in 2020 in Sri Lanka and Cambodia was to be completed in 2022 but was
delayed due to COVID-19 restrictions and then the current economic crisis in
Sri Lanka. The project is at an advanced stage. A gap analysis was conducted
towards transitioning to the new system. Also, necessary legal amendments
need to be undertaken to update the Customs Ordinance to accept advance
clearance and electronic data to implement the project. According to the
interview with a government official, it was stated that “under the current legal
framework in Sri Lanka, pre-arrival and pre-departure processing is not possible
because the Customs Declaration must be submitted at the point of
import/export” but not before the event. Despite the closure of the TradeLens,
the rest of the project is progressing towards streamlining the risk management
process by increasing custom’s digital access to advance sea cargo
information.

• Banks: NDB was connected to the platform and there are ongoing discussions
between TradeLens and another private bank, Nations Trust Bank (NTB), in Sri
Lanka. NDB had been at the forefront of adopting digital technology in its
business, and as such, was open to the adoption of emerging technologies like
TradeLens when Maersk approached the bank with the product for the benefit
of its customers, namely exporters. By onboarding to the TradeLens platform,
NDB became one of the receivers of the export data of a specific client, Eswaran
Brothers.

• Exporters: Eswaran Brothers, a major tea exporter and a customer of Maersk,


was the first exporter in the country to complete Sri Lanka's first-ever digital Bill
of Lading using the TradeLens platform in December 2021. Although only one
eBL was transacted using TradeLens, the exporter expected to utilize the
platform fully when other ocean carriers join the TradeLens platform. After
December 2021, additional shipping lines onboarded the TradeLens. Other
potential customers in discussion with TradeLens include conglomerates in the

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tea and apparel export industries, which stand to benefit from the technology
given the complexities of their value chains. To use the platform, exporters pay
a flat fee of USD50 per container per journey.

• Shipping lines: Major international shipping carriers (for example, Maersk,


CMA, MSC, ONE, Hapag Lloyd) that control the majority of Sri Lanka’s
containerized trade were connected to TradeLens. TradeLens was adopted and
implemented with the support of the leaders of the respective companies in Sri
Lanka that backed digitalization projects in their organizations. Leaders can play
a critical role in this regard through the process of identifying, evaluating, and
selecting the technology to improve business operations, communicating the
benefits of the technology, overseeing the adoption and implementation of
technology, providing on-going support, and fostering a culture of innovation.
Even when there is support at the highest levels of an organization, there is
often internal resistance to technological change by employees. Thus, the
implementation of digital technology calls for widespread collaboration and buy-
in across the company and the integration of digital technology into the
organizational culture.

4.2. Benefits of TradeLens


The interviews with stakeholders revealed the following benefits from the
implementation of TradeLens compared to the situation before.
• Streamlined process. TradeLens could" expedite" the issuance, transfer, and
surrender of the bill of lading. The process was manual and time-consuming
before adoption. After TradeLens was put into use, this was done with the “click
of a button”, doing away with the need for time-consuming manual handling and
the cost of shipping paper documents around the world. As stated by a shipping
line, “Complicated supply chains stand to benefit from TradeLens, and these
include retail, apparel, and fast-moving consumer goods (FMCG)”.

• Increased security and transparency. Transferring bills of lading to


consumers in other countries could involve fraud, delays, and unanticipated
costs. Additionally, shipments can be held up at the port of destination while
waiting for couriered documents to clear the cargo, which became a problem
during COVID-19. However, digital documents were instantly accessible to all
parties with blockchain security using TradeLens. This eliminates the risk of
missing documents, forgeries, delays, and reduces unplanned costs. According
to an exporter who was interviewed, “It is a secure platform, [that] eliminates the
risk of documents being tampered or lost, provides access to data to only to the
parties that require the information.”

• Less paper wastage. Paper bills of lading require unnecessary and expensive
printing and couriering. The time and money required to print and mail paper
bills of lading and other shipping documents were reduced or eliminated using
TradeLens. As stated by an exporter, TradeLens "reduced the cost and time of

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printing and couriering documents from days to a couple of minutes." The
platform developer noted that "it takes out all of the manual work and the
documentation process." As a result, it was estimated that customers can save
between USD 150-250 (Interview with a bank).

• Fewer errors. Manually transferring bills of lading and other paperwork among
different carriers can cause confusion and errors. However, there was no data
duplication because TradeLens provides access to the same entered
information on a single, secure platform supported by blockchain. “Through
TradeLens, we bring the right information at the right at their fingertips. It’s a
single version of the truth – there is no ambiguity of the information” (Interview
with a shipping line).

• Visibility. Companies struggle as there is no clear and consistent view of the


shipment's journey. TradeLens provides complete downstream container
visibility, including at the destination terminal in real-time, by reporting on
shipping events. This makes tracking and tracing quick and easy, enabling
companies to act fast and improve efficiency. “Visibility of the port terminals
before TradeLens was 7-10 days prior to cargo arrival. With TradeLens, the
visibility is there immediately when the booking is done” (Interview with a
terminal operator).

4.3. Implementation Challenges


The interviews identified the following challenges during the implementation of the
TradeLens in Sri Lanka.
• Linking to the Ecosystem: The foundation of the TradeLens was the
ecosystem consisting of shippers, ports and terminals, ocean carriers, and
government authorities. However, not all the partners in the ecosystem were on
board at its introduction in Sri Lanka, reducing the full potential of the platform
to its customers. According to an exporter interviewed for the study, its buyers,
banks, and shipping lines were not connected to the platform. Despite the
advantages of digitization, there was a pushback from buyers and other
exporters due to their inability to adapt to the platform and their preference for
paper documentation and manual processes. Similarly, a local bank connected
to TradeLens said: “It was ‘not an easy task’ in terms of adoption at first due to
the need to bring all partners in the ecosystem to the platform including
government departments [Customs] as well as the reluctance to accept digitally
signed documents, which was subsequently relaxed during COVID-19 to
facilitate trade”. By October 2022, the Bank has only had one customer/
transaction using the platform. The uptake by other customers had been slow
as the exporters not only have to register with the platform but also their buyers
and their respective banks to utilize the platform.

• The Internal challenge to the adoption of TradeLens: There was resistance


within businesses to adapt to new technologies due to their unwillingness to

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change the way they operate. As stated by the stakeholder interviewed for the
study, the ‘IT Department within the bank had to convince and get on board
different departments in the company (i.e., legal, compliance, business, and
trade). Their understanding and acceptance of TradeLens were important for its
implementation. One of the main concerns of other departments were
converting paper to digital documents. It was a learning curve for the company.
It took about a year to implement but now much of the hard work has been
completed. It takes time to adapt the technology within a company, requiring
change management.

• Resource allocation: Linking to the ecosystem required a lot of work and


resources, especially for early adopters and service providers like terminal
operators and banks. According to a terminal operator interviewed for the study
implementation of TradeLens required standardization of data as well as
integration with the existing IT systems. “Resources had to be allocated towards
this end. However, this was an internal challenge that was manageable. 60-90
man-days [was allocated] for development activity. We were the first to adopt in
Sri Lanka and there were issues related to localization.” However, this can be a
costly affair for companies and can be putting more toll on small and medium
enterprises.

• The Economic crisis in Sri Lanka: While the ecosystem in the country
responded ‘positively’ to the platform, the economic crisis affected the
implementation of TradeLens in Sri Lanka. Because of the economic crisis,
there had been a delay in linking the whole ecosystem including the Customs
under the ASYHUB project, which was also affected by COVID-19. As stated
by a stakeholder interviewed for the study: “With the current economic crisis in
the country, the implementation of TradeLens has been affected as companies
are fighting to survive. They have bigger challenges at hand and in this climate,
it takes time to convince and get them to adopt this technology.”

• Lack of clarity on the roles of relevant government agencies concerning


the platform and acceptance of digital documents: At first, there was
confusion about the relevant government agency to be involved in the
implementation of the TradeLens platform, as stated by a platform developer
interviewed: “Which authority should approve this? Central Bank of Sri Lanka?
Department of Exports and Imports? Customs? That clarity was not there at the
time of implementation.” This was compounded by the non-acceptance of
digitized documents which was subsequently resolved: “ICT Act allows
digitalization of documents; there is no constraint of traders from getting eBL
from any of the 5 carriers.”

• Lack of understanding about the technology: Educating customers on new


technology and its full potential in relation to their supply chain was reportedly a
challenge by a shipping line; “they want to understand it; they want to assess its
usefulness; they want to know who else has adopted it. This is a challenge with

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the introduction of any new technology. We are not any different from that
perspective. People are cautious”. A similar sentiment was echoed by the
developer of the TradeLens platform: “There have been a lot of meetings and
discussions which were ‘positive’, but people are cautious of adopting new
technology. The process with Customs is slow but that’s how it is worldwide.
Any change takes time. There is more interest in Sri Lanka than in other
countries.” Interviews also revealed that not all organizations were “tech savvy”
and some were “cumbersome” in their understanding of the technology. To
address this problem, it was stated that Maersk reached out and worked with a
selected few partners in Sri Lanka. Maersk had a team on the ground in Sri
Lanka to work with local customers who are open to digital technologies and the
potential to adopt them. Maersk took them through the TradeLens platform and
showed the benefits to the companies and their end customers. Also, they met
government agencies to educate officials on blockchain technology and how it
can transform the manual process into a digital one whilst ensuring the security
of the data.

5. Recommendations

Leadership and organizational commitment to digitalization are essential for the


adoption and implementation of emerging technologies like blockchain.
TradeLens was adopted and implemented with the backing of the leaders of the
respective companies in Sri Lanka that supported digitalization projects in their
organizations. Leaders can play a critical role in this regard through the process of
identifying, evaluating, and selecting the technology to improve business operations,
communicating the benefits of the technology, overseeing the adoption and
implementation of technology, providing on-going support, and fostering a culture of
innovation. Even when there is support at the highest levels of an organization, there
is often internal resistance to technological change by employees. Thus, the
implementation of digital technology calls for widespread collaboration and buy-in
across the company and the integration of digital technology into the organizational
culture.
Companies including leaders and employees need to be open to innovation and
learning. Given the enormous impact of digitization and how emerging technologies
like blockchain are upending the status quo in the world today, businesses must be
open to big changes and not afraid to adopt new technologies, as explained by a
stakeholder in the banking sector for its adoption of TradeLens: “The company has
been in the forefront in adoption of digital technology in finance and was open to the
adoption of emerging technologies like TradeLens when Maersk approached the
banking sector”. Companies can create an environment whereby innovation and
change are: encouraged through leadership by example and a culture of

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experimentation within the organization, supported by training and resources, and
recognized/rewarded through incentives while communicating the potential benefits of
embracing new ideas and new ways of working. Also, companies can be encouraged
to regularly assess and understand customer needs and preferences and to
continuously look for ways to improve customer experience.
Governments should clarify the acceptance of digital documents and signatures
to facilitate trade. There is often confusion or lack of information amongst parties in
the ecosystem about the legality of digital documents and signatures, and the
preference for paper documents. In Sri Lanka, the legality of digital documents is
governed by the Electronic Transactions Act, No. 19 of 2006. The Act provides a legal
framework for the use of electronic documents and signatures in commercial
transactions and other activities. It recognizes the legal validity and enforceability of
electronic records and digital signatures. In this regard, the implementation of
TradeLens in Sri Lanka could have been facilitated by informing parties in the
ecosystem in a clear and easy-to-understand manner about the relevant Act. Also, the
government could have issued notices/circulars through official websites, social media,
and emails; conducted workshops/seminars to better educate stakeholders on digital
documents and signatures in Sri Lanka.
The private sector needs to work with the Government towards the
implementation of digital technologies in the country. Given the advantages of the
digital platform and process changes required across the supply chain, key informants
who participated in the study asserted that the deployment of TradeLens should be a
national endeavour, as the private sector alone cannot drive it. Having the Government
support would be critical. This can be done through official statements and
implementation of the pilot project; for example, involving the SLC. Linking the
Customs authority to the platform would place pressure on others in the ecosystem to
follow through. Thus, the digital platform could have benefited from a closer public-
private collaboration by bringing both the private sector and the government together
to work jointly to facilitate trade.
Greater industry collaboration to build the ecosystem towards optimizing the
usefulness of blockchain technologies like TradeLens to all participants and
reaching commercial viability. The number of participants involved in the platform is
limited globally including Sri Lanka. The ecosystem was built in a phased, step-by-step
manner by adding gradually partners in light of challenges including the economic crisis
in Sri Lanka. In this regard, education, and awareness of the TradeLens platform were
important to improve the understanding of blockchain and the business value of the
platform in Sri Lanka.

11
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Annex 1: List of Key Informant Interviews (KIIs)

Name & Designation Organization

1 Thilak Arumapperuma Arachchi, Deputy Director Sri Lanka Customs

2 Chinthaka Abeynaike, General Manager IT South Asia Gateway


Terminals
Udara Cumaratunga, Senior Manager, Commercial &
Marketing
3 Ajay Pai, Regional TradeLens Project Manager A.P. Moller - Maersk

Abdul Azeez, Solutions Sales Manager

Mariya Kaed, Customer Engagement Manager


4 Subramaniam Eassuwaren, Vice Chairman Eswaran Brothers
Exports
Jeiyaseelan Kandiah Mahalingam, Manager Logistics &
Shipping
5 Damith Silva, Assistant Vice President, Digital Financial National Development
Services Bank

Dulani Weerasinghe, Associate Manager, Digital Financial


Services
6 Bimal Kanal, Head of TradeLens, South Asia TradeLens

Nicholas Buhmann, Commercial Manager, TradeLens

Annex 2: Key Information Interview Guide


1) When was TradeLens implemented? Why was it implemented?
2) What were the main challenges you encountered before the implementation of
TradeLens?
3) What were the solutions offered by TradeLens to address these challenges?
4) What are the benefits of TradeLens?
5) What were implementation challenges you faced?
6) Any suggestions/recommendations for further digitalization of the supply chain?

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