Boat building industry:

Over 50 percent growth in 2011

Indunil Hewage

The boat building industry in Sri Lanka is showing signs of being one of the dominant sectors to develop the country’s economy. The industry is predicted to record 50 percent growth in 2011.

The boat building industry has recorded around US $ 20 million and US $ 54 million in boat exports in 2008 and 2009 respectively. The Sri Lankan boat building industry has also recorded around US $ 69 million in foreign exchange during the first nine months in 2010 and is expected to record US $ 80 million in foreign exchange before the end of 2010, Boat Building Technology Improvement Institute Managing Director Gamini B Herath told Daily News Business.

Sri Lanka exports leisure boats, speed boats, fishing boats and other vessels to Seychelles, Mauritius, Somalia, Djibouti, India, Pakistan, Bangladesh and the Maldives.

The country intends to expand the existing markets in India, Pakistan, Bangladesh and the Maldives and UK.

Currently, there are about 25 boat builders in the country, of which ten are key boat building enterprises in the country. The remaining boat builders are engaged in building small canoes and other small vessels.

Herath said any development activity had not taken place in the boat building industry during the last 30 years. Nevertheless, a significant growth can be seen in the boat building industry since 2008 with the expansion of the industry along with the increased awareness of boat builders on the industry.

In addition Sri Lanka is expected to build marinas in Beruwala, Kalpitiya and Trincomalee shortly. The total cost of the Beruwala marina is US $ 30 million and the construction work of the marina is expected to be completed by 2012.

With the cessation of hostilities, the fishing industry and the boat building industry performances are improving significantly. The Fisheries and Aquatic Resources Development Ministry also plans to introduce Tuna long liners for Tuna fishing in the country considering the lucrative opportunities in the fishery industry in the country.

Sri Lanka also targets the Dubai Boat Show which is scheduled to commence in March 2011 to capture lucrative markets in the global boat building industry.

“Sri Lanka needs to expand internal markets for the benefits of local boat building industry prior to expanding export markets. However, internal markets are being developed in the country with the appropriate intervention of the Fisheries and Aquatic Resources Development Ministry,” Herath said.