Sri Lanka's garment exporters, the nation's largest export group, are calling for a regulatory body to be set up to monitor the services provided by ports and shipping industry amid a dramatic rise in terminal handling charges (THC).

From January 1, shipping lines have increased charges by up to 35 per cent, between US$115 and $155 per TEU, with FEU rates soaring from $185 to $245.

The Joint Apparel Association Forum (JAAF), which represents the nation's $3 billion garment export industry, earlier this month released a statement to urge the government to freeze the THC hike, claiming that garment exporters will find it difficult to shoulder the extra burden, a report by the Colombo Sunday Times said.

In response, agents representing the shipping lines argue that the higher THC are needed as part of a drive to recover 100 per cent of expenses which vary according to port charges.

"The THC announced by the lines is in direct proportion to the tariffs applicable in the Port of Colombo and will vary according to changes in the tariffs," said NK Warusavitharana, Secretary General of the Ceylon Association of Ships' Agents (CASA) in the report, adding that no further THC hikes will be levied this year.

Garment exporters are not convinced and are demanding the increase in THC be reviewed.

"So there is a need for a regulator to look at how these prices are structured and to decide what should be passed on to exporters. Some of these costs should not be passed on to us," said Mr Priyatilake.