An Investigation Into the Competence and Quality of the Logistics Services Dimension of the Logistics Performance Index (LPI) in Sri Lanka

Logistics Performance Index (LPI) helps countries to identify logistics bottlenecks and to seek remedies. LPI is measured in terms of six key dimensions, among which “Competence and Quality of Logistics Services” is a vital factor determining international competitiveness. Sri Lanka’s logistics performance in terms of the above dimension has been declining over the past years, and this has given rise to the importance of exploring the factors contributing to such low performance. This study aimed to critically analyse this dimension of “Competence and Quality of Logistics Services” in the Sri Lankan context, and to identify the factors contributing to it using Exploratory Factor Analysis (EFA).  The results revealed that the twenty-four variables used in the analysis were extracted into seven factors, and these seven factors would explain almost 60% of the total variance of the model. According to the findings of the study, the Sri Lankan logistics sector should give higher prominence to factors such as logistics inputs, regulatory compliance, and freight mode, which appear to have a higher contribution to the logistics competence dimension, while collaboration, port efficiency, infrastructure, and stakeholders indicate less significant contributions towards logistics competence in Sri Lanka. Thus, reforms at the industry and policy-level focusing on the Competence and Quality of Logistics Services dimension appear imperative for Sri Lanka to enhance the country’s LPI ranking.