Sri Lanka - a small nation with big plans

Fisheries sector major contributor to economy:

Recovering from a troubled past decade that combined political unrest and natural disasters, Sri Lankan Government is now setting about bringing stability through establishing a foundation for strong economic development, with the fishing industry high on the agenda.

Dr Senaratne has keenly grasped the challenge as Fisheries Minister since his appointment in mid 2010.

Following four years of virtual stagnation in Sri Lanka’s fisheries sector, the Minister set about identifying the capabilities of the country’s fleet and the level of investment needed if Sri Lanka wished to maximise the economic potential of its marine resources.

For a country traditionally comprised of a catching sector largely consisting of small ‘clusters’ of artisanal fleets, totalling in excess of 3,150 ‘Multi day’ boats, generally based in rural locations with often unsuitable infrastructure and processing facilities, the wish list for a 21st Century fishing industry seemed an impossible target - but, Dr Senaratne’s determination in making the dream a reality makes this now likely to happen sooner rather than later.

Economic growth

Despite lacking any major investment in recent years, Sri Lanka’s fisheries sector is the country’s third most important contributor to economic growth and is second only to agriculture and tourism. But with renewed focus on the fishing industry, its contribution to GDP reached 18 percent in 2010 while the overall national economy’s growth stood at 8.5 percent.

Sri Lanka is already well established as one of the leading nations in the Indian Ocean yellow fin tuna fishery and the country’s exports of this species to 27 countries, mainly across Europe, with a value of US $ 180 m, gives them 40 percent of the world’s yellow fin tuna market. Of these exports, over 90 percent goes to just six countries and Minister Senaratne says that while his initial aim was to increase catch levels from 213,000 metric tonnes two years ago to 686,000 metric tonnes by 2013 (catch levels reached 383,000 metric tonnes in 2010), he recognises that to develop the country’s fishgig industry, issues such as sustainability, traceability and regulation must all first be addressed.

“I believe the way ahead for developing our industry lies not just in a requirement for major investment but also in dialogue with the leading seafood retailers. It is not enough to just increase our catching capabilities and effort - we must show our fisheries to be sustainable and properly managed,” the Minister told Intrafish.

True to his word, one of the Minister’s first step after his appointment in 2010 was to re-enter Sri Lanka into tuna stock management talks with other groups and nations - four years after that country had withdrawn its participation.

Further recognition was given to these efforts when Sri Lankan company Tuna King, with the encouragement of the Minister, became the first ever tuna fishery to be recognised for its environmental friendly practices by the UK Sea Fish Authority’s Responsible Fishing Scheme (RFS).

The Minister has also sought Marine Stewardship Council (MSC) creditation for their Indian Ocean yellow fin tuna fisheries and the pre-assessment consultation begins on January 4, 2011.

Investment

With recovery from a global recession ongoing, the obvious question remains - who is going to pay for the rebuilding of an entire fishing industry? In this too, Minister Senaratne has shown his political skills by brokering a joint venture deal with Saudi Arabia’s Crown Prince who has invested US $ 300 m. This investment will go towards improving all sectors within Sri Lanka’s industry - a new fleet, new equipment, refurbishment of existing handling and processing facilities, as well as rebuilding infrastructures in the country’s many small harbours.

“The initial benefit of such a large investment for our industry is obvious, but the long-term reward is that this arrangement will see 25 percent of all profits from this project being ploughed back into the industry to increase productivity and the overall standard of the sector as a whole,” the Minister said.

But the ambitious program of investment doesn’t end there.

In highlighting the need to totally ‘re-invent’ Sri Lanka’s seafood sector, Minister Senaratne has convinced his government to agree to enter into a financial arrangement whereby the exchequer will borrow approximately LKR1 billion (Sri Lankan Rupees)/US $ 9, from the banks at a lending rate of 12 percent and then use this money to lend to the fishing industry at a rate of 8 percent. This, said the Minister, will go towards helping the smaller inshore vessels which concentrate on crab and shrimp fisheries replace their craft with more modern and safer vessels.

“We would prefer not to confine our project to replacement of ‘hardware’ in terms of vessels, gear, factories etc - we are also concerned with the entire socio-economic well-being of our fishermen. We want to invest in pensions for fishermen, better education for their children and better homes for their families,” he said.

But, for the Minister, the current problems stretch far beyond just improving life for Sri Lanka’s 175,000 full time and part time fishermen and the 700,000 indirectly employed seafood industry workers. In a nation where 70 percent of protein intake is available from seafood, Sri Lanka officially records over 21 percent of its children as being malnourished - a figure which the Minister insists must be brought down to the zero percent by 2013.

“At present, the per capita intake of seafood in Sri Lanka is only around 31gms per day and we hope to see that figure rise to 60gms by 2013. Therefore, the need for increased catching capacity is not solely about improving export markets - it is also about making a greater volume of seafood available nationally,” the Minister said.

The fleet

The Minister is adamant that sustainability and regulation of fisheries are the foundation on which a successful future must be built.

He made no secret of his admiration for latest Norwegian-built long liners which are not only helpful to sustainable fishing but are also environmental friendly.

These, he said, are the kind of vessels he would like to see Sri Lanka operating further out into the Indian Ocean. But for the immediate future, the Minister is aiming for a new fleet of ‘multi day boats’ (some built nationally but mostly imported new and possibly secondhand from abroad) which would be served by five new mother ships which would be equipped with freezing and chilling facilities and which would also provide the fishing fleet with supplies.

Illegal fishing is a global problem and one which the Minister is well aware of. And it is this awareness that has prompted Dr Senaratne’s insistence that Sri Lanka’s ‘new’ fishing industry will be fully monitored and regulated through state-of-the-art Vessel Monitoring Systems (VMS).

“VMS is vital for the future of our industry and, as part of the regeneration of our fleet, installing this system onboard will be compulsory. As well as looking at these systems already established in fishing fleets across the world, we are in discussions with no less than 23 VMS companies from 14 different countries to try and decide which system will be most suitable for our industry,” the Minister told Intrafish.

Sri Lanka is indeed setting itself some major goals to reach in the coming years, but there is a distinct feeling of determination, optimism and confidence that this nation’s fishing industry is in very good hands.