FOB Colombo & Incoterms: A Buyer’s Guide to Sri Lanka Shipping Terms

Giugno 13, 2026

Container ship at a port terminal

By the SriLankaExport.com Trade Desk · researched & fact-checked against primary sources

Container ship at port — FOB shipping

Almost every quote you receive from a Sri Lankan exporter will be priced on an Incoterm, most often FOB Colombo. Understanding what each term covers prevents nasty surprises in landed cost and clarifies exactly where the exporter’s responsibility ends and yours begins. This guide explains the terms buyers meet most when importing from Sri Lanka.

The Incoterms You’ll See

TermSeller coversBuyer covers
EXW (Ex Works)Goods at the factoryEverything else: inland, export, freight, import
FOB ColomboGoods loaded on the vessel at Colombo, export clearedSea freight, insurance, import clearance, delivery
CFR / CIFAbove + sea freight (CIF also adds insurance) to your portImport clearance, duties, delivery
DAP / DDPDelivery to your address (DDP also pays import duties)DDP: little; DAP: import duties/taxes
FOB Colombo is the most common quote because it cleanly splits responsibility at the Sri Lankan port: the exporter handles everything up to loading; you control the freight, insurance and import. It’s also the most comparable basis when getting quotes from multiple exporters.

Turning a FOB Price into Landed Cost

FOB is not your final cost. To compare offers properly, add: sea freight, marine insurance, destination port/handling, import duty (check whether GSP+/GSP preferences apply), VAT/GST, customs brokerage and inland delivery. A low FOB with high freight can lose to a higher CIF. Use the same Incoterm across quotes, or convert them, before deciding.

Practical Tips

  • Confirm which port (“Colombo” is standard) and that export clearance is included in FOB.
  • For first orders or small volumes, CIF can be simpler. The exporter arranges freight.
  • Agree the Incoterm and the year (e.g. “FOB Colombo, Incoterms 2020”) in the contract.
  • Marine insurance is cheap relative to a loss. Never skip it on EXW/FOB/CFR.

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SLE
SriLankaExport.com Trade Desk

Export specialists at Harker International (Pvt) Ltd, Kandy, Sri Lanka. Every guide is researched and verified against customs tariffs, EDB data and the relevant international standards. Our editorial standards & team →