Fisheries Sector in Sri Lanka

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1 Fisheries Sector in Sri Lanka Compiled by: The Ceylon Chamber of Commerce No. 50, Navam Mawatha Colombo 2 Sri Lanka. Tel , : Fax

2 Table of Contents: Introduction Production Employment Exports Imports Infrastructure Investment Opportunities Government Policy Game Fishing Institutes Overlooking Fisheries Sector

3 Introduction The fisheries sector plays an indispensable role in the economy of Sri Lanka contributing around 1.2% to the GDP. Fish products are an important source of animal protein, providing around 70% of the animal protein consumed in the country (Food Balance Sheet, Department of Census and Statistics). The sector provides direct and indirect employment to around 650,000 people and is directly linked with the lives of approximately 50% of the population who resides in the coastal belt. Fisheries sector contribution to the total export earnings of the country is around 2.5%. The fisheries sector has a significant scope for increasing the contribution to the national economy, exploiting the huge untapped potential. Fishing industry in the Northern and Eastern provinces, which was hampered to a greater extent during the past two decades owing to the ethnic conflict is expected to revive with the dawn of peace. The Northern and Eastern provinces which accounts for around 60% of the coastline of the island have a huge unexploited potential. The damaged infrastructure and facilities as well as the curtailment of fishing activities on security grounds has resulted in a considerable fall in production from these parts during the past two decades. With the opening up of seas around the Northern and Eastern parts, the country expects a rapid boost in the fishing and allied activities and hence the increase in contribution to the GDP. Resource Base: Sri Lanka s marine fisheries resource base has a total extent of km 2 and is rich in species diversity. Territorial Sea 21,500 km 2 Exclusive Economic Zone 517,000 km 2 (EEZ) Continental Shelf Area 30,000 km 2 Source: Ten Year Development Policy Framework, Ministry of Fisheries and Aquatic Resources (2007) Sri Lanka also has extensive fresh water and brackish water resources for carrying out fishing activities. According to National Aquaculture Development Authority (NAQDA) fresh water bodies comprise of around 260,000 ha of large irrigation reservoirs, Medium irrigation reservoirs, Minor Irrigation reservoirs, seasonal village tanks, flood lakes, upland reservoirs/estate tanks and Mahaweli river basins. 3

4 Inland waters km 2 Brackish water area km 2 Fresh water area km 2 Lagoons & Estuaries ha Mangrove Zones, mud flats & 71,000 ha salt marshes Fresh water bodies ha Perennial reservoirs ha Seasonal tanks ha Villus 5000 ha Source: Ten Year Development Policy Framework, Ministry of Fisheries and Aquatic Resources, (2007) On the basis of their size and fishery management norms the reservoirs in the country can be grouped under three broad categories: 1. Large (over 800 ha) and medium ( ha) which are used for capture fisheries); 2. Small (1-200 ha) irrigation reservoirs for culture-based fisheries 3. Seasonal tanks which hold water for 6-8 months a year for culture fisheries Contribution of the Fisheries Sector to the Gross Domestic Product: Source: Central Bank Annual Reports 4

5 Production: The contribution of the marine fisheries (coastal and deep sea) segment to the fisheries sector is around 86%. The coastal fish production contributes to more than half a percent (53%) of the total fish production, while off shore/deep sea fishery contribution is around 33%. The share of fresh water fishery is around 14%. Over the last five years ( ) the annual average growth of the fisheries sector was around 1.1%. The highest yield ( MT) over the last ten years was recorded in 2009, while year 2005 marked the lowest production ( MT) following the Tsunami devastation in year The coastal fish production has declined from 58% to 53% over the last ten years while off shore/deep Sea fisheries contribution has varied between 29% - 40% over the last ten years. Inland fisheries and aquaculture has shown a sluggish growth over the last ten years, with a highest contribution of 20% recorded in year However the contribution of the sector has remained around 14% since The fisheries sector production, both marine and inland is expected to gradually catch up over the next couple of years with the revival of fishing activities in Northern and Eastern provinces. Fish Production: Percentage contribution to the total production ( ) (%) Coastal Off shore Inland & Aq. Source: Fisheries Statistics Sri Lanka, Ministry of Fisheries and Aquatic resources (2009) 5

6 Marine fish production by fisheries districts (mt) Fisheries Districts 2, % (2009) Matara 35,480 17,090 48,460 47,810 44, Negambo 34,540 16,940 35,710 35,820 37, Kalutara 33,140 11,560 39,950 39,580 33, Trincomalee 13,540 6,790 8,150 17,980 27, Galle 27,830 11,210 17,820 14,800 24, Batticaloa 9,860 7,650 11,710 21,850 24, Chilaw 25,650 9,360 24,180 22,060 21, Tangalle 33,470 6,220 20,990 20,850 20, Puttalam 29,730 11,670 17,130 16,960 20, Kalmunai 9,210 7,940 12,810 22,050 16, Jaffna 6,400 12,790 5,130 5,830 13, Mannar 1,200 8,380 9,170 7,390 8, Colombo 3, , Mullativu na na Kilinochchi na 1, na na Total 263, , , , , Source: Fisheries Statistics Sri Lanka, Ministry of fisheries and aquatic resources (2009) Matara, Negambo and Kalutara are the districts that bring the largest marine fish catch in the country. Matara district accounts for a share of 15% of total fish production, while Negambo and Kalutara districts accounts for 13% & 11% respectively. Northern Province comprising of Jaffna, Mullativ and Mannar districts has great potential to contribute a lot more to the marine fish production of the country. Fish Production by Fishing Sub Sectors (2009) Inland & Aquaculture 14% Off Shore/Deep Sea 33% Coastal 53% 6

7 Skipjack tuna (Balaya), Yellow fin tuna (Kelawalla) and shore seine varieties (small fish) were the dominant species comprising 62% of the total marine fish production. The share of shore seine varieties alone was 25% and that comes from the coastal fishery. The shares of Skipjack (Balaya), Yellow fin tuna (Kelawalla) were 21% and 16% respectively. Marine Fish Production by Major Commercial Group Other 21% Skipjack tuna 21% Other blood fish 11% Prawns, Lobsters & Crabs 6% Shore seine varieties 26% Yellowfin tuna 15% Source: Fisheries Statistics Sri Lanka, Ministry of Fisheries and Aquatic Resources, (2009) Inland & Aquaculture fish Production by fisheries district (mt) District % (2009) Anuradhapura Polonnaruwa Ampara Puttalam Kurunegala Hambantota Moneragala Ratnapura Trincomalee Batticaloa Badulla Matale Vavuniya na Kandy Mannar 228 ne Gampaha Colombo

8 Nuwaraeliya Kalutara Jaffna Galle Matara Kegalle 8 ne Mullativu ne ne ne ne 0.0 Killinochchi ne ne ne ne 0.0 Total Production Note: na- not available, ne negligible Source: Fisheries Statistics Sri Lanka, Ministry of fisheries and aquatic resources (2009) North Western Province constituting of Anuradhapura & Polonnaruwa districts dominates the inland fisheries sector, contributing nearly 39% of the total production. The contribution of Hambanthota district is around 6%. While the contribution of Badulla & Kandy districts are around 2.4% & 0.6% respectively. These districts with their extensive inland water resources have a huge potential to contribute more to the inland fisheries sector. However the lack of investment in inland fisheries and aquaculture in these districts results in a comparatively low harvest. Inland Fish Catch Estimates by Major Species Catla 13% Other 8% Other wild fish 3% Cultured shrimp 8% Carp 6% Rohu 5% Thilapia 57% Tilapia constitutes more than 57% of the inland and aquaculture fish catch. Tilapia is the most soughted in aquaculture after carps. Catla along constitute a share of 13%, while other Caprs constitute a share of 6%. Cultured shrimps constitute considerable portion of inland fisheries, a share of 8%. 8

9 Fisheries Sector Employment: Fisheries sector provides livelihood for the majority of people living in the coastal belt and around irrigation tanks and reservoirs. The sector currently provides direct employment to about 650,000 people comprising 150,000 in fishing, 100,000 in associated service activities and 400,000 in fish trade. (Ten year development policy framework, ) Active fishers by district (marine fisheries) Fisheries District Active Fishers % Distribution Trincomalee Batticaloa Kalmunai Jaffna Negambo Puttalam Chilaw Matara Galle Tangalle Mannar Kalutara Colombo Mullativu na Kilinochchi na Total Fishers Source: Fisheries Statistics Sri Lanka, Ministry of fisheries and aquatic resources (2009) Majority of active marine fishers are from Trincomalee district (18%) followed by Batticaloa (15%), Kalmunai (13%) and Jaffna (10%) districts. With the dawn of peace, curtailed fishing activities on security grounds are reviving, attracting more and more people to the fishing activities in these areas. Anuradhapura and Polonnaruwa district has the majority of inland fishers. Badulla district has 1282 active fishers, while Kandy and Jaffna districts have 409 & 380 fishers. Active Fishers by district (Inland & Aquaculture) District Active Fishers % Distribution Anuradhapura Polonnaruwa Kurunegala Puttalam Ampara Batticaloa Monaragala Hambantota

10 Badulla Galle Ratnapura Matale Trincomalee Vavuniya Matara Kalutara Mannar Jaffna Kandy Nuwaraeliya Colombo Kegalle Gampaha Mullativu na Kilinochchi na Total Source: Fisheries Statistics Sri Lanka, Ministry of fisheries and aquatic resources (2009) Fishing Crafts in Sri Lanka: Year Total In board Out board engines Non fishing engines motorized Inland Crafts Multi Single Fibre Traditional traditional (Oru/Tu day Day glass (Motorized) bes) ,295 1,430 1,170 8,690 1,205 15,100 4, ,349 1, , ,200 5, ,735 1,614 1,112 9, ,600 5, ,494 1,530 1,486 11, ,040 5, ,567 1,581 1,493 11, ,260 6, ,101 1,328 1,164 11,010 1,660 14,739 6, ,850 2, ,860 1,842 16,347 6, ,640 2,460 1,060 15,200 1,680 16,640 6, ,693 2,809 1,140 15,847 1,959 17,178 6, ,274 2, ,193 2,126 18,243 6,820 Source: Statistics Unit - Ministry of Fisheries and Aquatic Resources As indicated by the table fishing fleet has increased significantly over the last ten years. Multi day boats have increased almost two folds. However multi day boats constitute comparatively insignificant share (6%) of total fishing fleet. Non-motorized traditional boats comprise of a 38% of the fishing fleet, which shows the under developed nature of the fishing industry. 10

11 Exports Performance: Over the last ten years export of fish has remained less than 3% of total value of exports. Fresh & frozen fish accounts for about 81%, while Crustaceans and Molluscs account for nearly 17% of total fish exports. The inadequacy of investment in fish processing and related activities has resulted in poor export performance. Total value and volume of exports: Year Quantity (mt) Value (RS. mn) % of Total Exports Source: Sri Lanka Customs, Fisheries Year Book of NARA Country wise export of fish varieties: Fish Variety Major Export Destinations Tuna Japan, UK, Singapore, Netherlands, Germany Shrimps and Prawns Japan, USA, Hong Kong, Singapore, France Beche-de-mer Singapore, Thaiwan, Hong Kong, Ornamental Fish USA, Japan, Germany Source: Sri Lanka Customs, Fisheries Year Book of NARA 11

12 Imports Fish imports account for about 1.2 percent of the total imports value. Out of total fish imports to Sri Lanka, dried fish account for about 55%, canned fish for about 20 percent and Maldive fish for about 25%. Total volume and value of imports: Year Volume (Mt) Value (Rs. Mn) , ,536 5, ,119 6, ,284 5, ,584 7, ,382 9, ,156 11, ,266 12, ,411 13,939 Source: Sri Lanka Customs, Fisheries Year Book of NARA Fisheries Infrastructure: Infrastructure Facilities 2009 Major Fisheries Harbours 16 Anchorages 40 Minor fish landing centres 785 Active ice plants 75 Ice production capacity (Tons/Day) 1059 Cold Rooms 26 Boat manufacturing yards 29 Fishing gear factories 6 Source: Fisheries Statistics 2009, Ministry of Fisheries & Aquatic Resources At present there are 16 fisheries harbours in operation. Most of these fisheries harbours do not have adequate facilities and unable to accommodate large vessels. Poor fisheries infrastructure hampers the development of off shore and high sea fishing. On the other hand inadequate ice production, storage and transport facilities have constrained the quality improvement and improved distribution of fish. 12

13 Investment Opportunities: Off shore/ High Sea Fishing: High sea fishing/ off shore fishing refers to fishing beyond the territorial waters extending up to the Exclusive Economic Zone (EEZ) and beyond. Although the country has a narrow continental shelf with an extent of 30,000 Km 2 (which is 5.8% of the country s ocean area), Sri Lanka has an extensive sea area to engage in off shore/deep sea fishing activities. High sea/ off shore fishing segment of Sri Lanka is characterized with inadequate investments in technology and sophisticated, efficient equipments. On the other hand there is a need for the introduction of the large sized and well equipped boats which are capable of exploiting deep sea resources. Thus the existing facilities such as storage, net and line hauling gear, safety and communication equipment etc. in the operating multi day fishing boats are not in a satisfactory condition. Lack of proper fish landing and quality maintenance facilities on board the vessel results in high levels of post harvest losses and poor quality. Since most of the multi day vessels aim at higher volumes rather than quality, majority of landings do not meet international quality standards. There is significant scope for private sector investors to invest in off shore/deep sea fishing. There is a need to invest in well equipped large vessels as well as multi day fishing boats with adequate equipment and technology to exploit the deep sea resources. In particular Sri Lanka has been unable to exploit tuna fish resources owing to inadequate multi day fishing fleet and inadequate application of fishing technologies. Therefore it is the need of the time to urge more and more private sector investments into the off shore/deep sea fishing segment. In the view of the limits to production increases in the coastal fishery it is imperative that Sri Lanka develops the capabilities in high seas fishing. The National Aquatic Resources Development Agency (NARA) conducts research on deep sea fisheries resources on a more general basis. The agency has the capacity in terms of physical infrastructure and human resources to conduct research on fisheries resources of any particular sea area on the potential for fishing for any specific fish species, upon any request raised by private sector investors, based on a fee. Fish Processing & Export: At present fisheries sector contribution in terms of export earnings is insignificant and only about 7% of the local fish catch is exported. Given the fisheries resources of the country, fisheries sector has the potential to contribute more to the country as a source of foreign exchange. Sri Lanka exports of fishery products includes fresh, chilled and frozen tuna fish, shrimp, lobsters, shark fins and sea cucumbers etc. Although the exports of fish and fishery products are at a minimal level there is significant scope for expanding the fish processing and exports sector with the private sector participation. At present several companies are into fish processing and exporting with the approval and operating license from the Department of Fisheries and Aquatic resources. 13

14 An establishment which intends to process fish for export requires the approval & the operating licenses issued by the Department of Fisheries and Aquatic Resources to process fish for exporting. NARA as well as the Department of Fisheries provide various support services to the investors seeking investment opportunities in fish processing and exports sector. NARA provides feasibility study services for the private sector based on a fee, in identifying a suitable location for the processing establishment to be based, as well as in identifying the appropriate fish species/sub species for export processing. In addition these two institutions conduct training programs and awareness programs for the industry on best practices in fish processing, meeting international quality standards etc. Provision of Infrastructure: In order to develop fisheries sector there is a need for private sector stakeholder involvement in developing the fisheries infrastructure and operation of facilities such as harbours, minor fish landing sites,etc. As stated in the National plan for the development of Fisheries and Aquatic Resources, the private sector will be urged to enter into partnerships with the Ceylon Fisheries Harbours Corporation to provide and operate shore facilities at these harbours and anchorages such as cold storages, slipways, fuel supply, ice supply and fish transport facilities. The private sector will also be encouraged to invest in the building of new harbours and fish landing facilities on BOT or BOO basis and manage such facilities. Inland Fisheries and Aquaculture: Inland Fisheries and Aquaculture segment is an imperative segment with huge potential to further develop into a thriving segment of the fisheries industry. There is a need to increase fish production in minor perennial reservoirs, seasonal tanks and brackish water bodies through culture based fisheries. As the country has an abundance of inland water bodies in almost every region private sector investments are encouraged in inland fisheries and aquaculture. Private sector has the opportunity to engage in brackish water aquaculture, culturing Shrimp, Prawns, crab for the export industry, which has a huge demand at present. Thus private sector investments are encouraged in the export oriented culturing of ornamental marine fish varieties, which also has a huge demand in the international market. 14

15 Opportunities for Brackish water Aquaculture: Puttalam (1,200 ha), Galle (200 ha), Mannar (800 ha), Trincomalee (600 ha) Hambanthota (400 ha), Batticaloa (1,600 ha), Jaffna ( 400 ha), Mullaitivu (800 ha). Source: Ten Year Development Policy Framework, Ministry of Fisheries and Aquatic Resources, (2007) The National Aquatic Development Authority (NAQDA) & NARA provides a range of services to the private sector in order to develop the inland fisheries and aquaculture including Public-Private Partnership projects, training programs to open up opportunities to the private sector. In addition through its regional extension services NAQDA offers variety of services to the private sector investors who are seeking an opportunity to invest in aquaculture. 15

16 16

17 Government Policy The fisheries development policy aims at exploiting the country s fisheries and aquatic resources in a sustainable manner, while conserving the coastal environment. The government is targeting self-sufficiency in the national fish supply and a significant increase in fish exports. The key components of the policy directions are specified as follows. Policy Thrust Strategies/Activities Indicator Present Status Promotion of deep sea & offshore fishing Reduction of post harvest losses Promotion of ornamental fish, inland fisheries and aquaculture Increase multi day fishing fleets Develop Infrastructure Facilities Introduce better fish handling techniques and modern landing facilities Develop inland fisheries in reservoirs, tanks and ponds No. of deep sea multi day days (Nos) No. of boat manufacturing yards No. of fishing gear factories No. of modernized major fishery harbours No. of active ice plants Marine fish production (mt/yr) Post harvest losses (%) Increase the share of skilled fish handlers (%) Inland fish production (mt/yr) Production of fingerlings (millions) Coverage of water bodies with proper management (%) No. of aquaculture centres No. of ornamental fish breeding and , , Anticipated Achievement , , , ,

18 training centres No. of new cage farms Enhancement of processing and value addition Expansion of foreign and local market Increase fish processing zones and storage capacities to reduce the import of fish Increase the quality of export No. of fish processing zones Share of storage capacity Quantity of import (mt) Quantity of export (mt) Certification and standardization of fish processing factories - 30% 75, % 40, % , , ,000 5% 50% 100% Source: Mahinda Chinthana, Vision for the Future, Ministry of Finance and Planning Game fishing opportunities in Sri Lanka: Given the extensive ocean area and numerous fresh water and brackish water reserves there is great potential for the development of game fishing sector in Sri Lanka. Inland fishing can be carried out through-out the year owing to the constant smoothness of the water in inland waterways and reservoirs. However deep sea fishing is dependent on the monsoon, with western and southern coasts accessible during North- East monsoon (from October to April) and the East Coast favored during the South West monsoon (May to September). The seas around Sri Lanka hold an abundance of game fish for the keen angler. Close to the coast Grouper, Snapper Emperor, Bonefish are found. Deep in the seas game fish ranging from Barracuda, Barramundi, Skipjack tuna, yellow fin tuna, blue fin tuna, sword fish and marlin, shark are found in abundance. Although Sri Lanka s hardly exploited seas holds an excellent opportunity of game fishing, Sri Lanka is not a popular game fishing hot spot due to inadequate facilities available for anglers. Ceylon Fisheries Harbours Corporation (CFHC) and few other private game fishing tour operators are organizing game fishing expeditions for the anglers at the moment. There is a need and also opportunity for private sector investment in popularizing Sri Lanka as a game fishing hot spot. 18

19 Inland Game Fishing: With a number of large, medium and minor irrigation reservoirs, seasonal village tanks and flood lakes, upland reservoirs and Mahaweli river basins there is huge potential to develop inland game fishing. Nevertheless at present only Nuwaraeliya has a reputation for inland trout fishing. Apart from that Madhu Ganga and Bolgoda Lake are ideal for inland game fishing, where some inland game fishing tour operators arrange convenient tours for anglers. Madhu Ganga is famed as the Ceylon Anglers Club holds their annual fishing competition. Game fish spotted in these fishing grounds are Barramundi, Barracuda, Mangrove Jack, Bull eyed Mackeral etc. There is ample opportunity for private sector to invest in game fishing sector, both marine and inland. At present only a few operators are into the inland game fishing tour operating, and the activities are concentrated to Madhu Ganga, Bolgoda Lake and a few other lakes and rivers in Nuwaraeliya. Therefore private sector is urged to invest in game fishing and popularizing Sri Lanka as a game fishing hot spot utilizing the inland water bodies found in abundance. Institutions overlooking the Fisheries & Ocean Resources in Sri Lanka Ministry of Fisheries and Aquatic Resources Development New Secretariat, Maligawatta, Colombo 10 T.P.: Fax : Department of Fisheries and Aquatic Resources 3rd Floor, New Secretariat, Maligawatta, Colombo 10 Phone: , Fax: Department of Coast Conservation New Secretariat Maligawatta Colombo 10 Tel: Fax: Ceylon Fisheries Corporation 15, Rock house lane Mutwal Colombo 15 Tel: Fax:

20 Ceylon Fisheries Harbours Corporation 15, Rock house lane Colombo 15 Tel: / / Fax: National Aquatic Resources Research and Development Agency (NARA) Crow Island Mattakkuliya Colombo 15 Tel: / Fax: National Aquaculture Development Authority of Sri Lanka No.41/1, New Parliament Rd, Pelawatte, Battaramulla Tel: / Fax: National Institute of Fisheries and Nautical Engineering (NIFNE) 15, Crow Island Mattakkuliya Colombo 15 Tel: / Fax: Ceynor Foundation Ltd (fishing nets and gear) 335, D R Wijewardane Mawatha Colombo 10 Tel: / Fax:

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