MIDTERM POLICY FRAMEWORK 2013-2016For

Fisheries Sector Development

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PURPOSE

The Midterm Policy Framework 2013-2016 for Fisheries Sector Development presents an overview of the fisheries sector, reviews the implementation of the Fisheries Sector Development Strategy 2010-2013 (FSDS) and evaluates its outputs and outcome, identifies measures to address the issues and remove constraints encountered in implementation of FSDS, and widens the scope of FSDS to cover the period 2013-2016 in the context of Mahinda Chintana - Vision for the Future, the Development Policy Framework of the Government of Sri Lanka.

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ABBREVIATIONS

CFC – Ceylon Fisheries CorporationCFHC – Ceylon Fishery Harbours CorporationCITES – Convention on the Trade in Endangered SpeciesCNFL – Cey-Nor Foundation LtdDFAR – Department of Fisheries and Aquatic ResourcesFAO – Food and Agriculture Organization of the United NationsIOTC – Indian Ocean Tuna CommissionIUU (Fishing) – Illegal, Unreported and Unregulated (Fishing)MFARD – Ministry of Fisheries and Aquatic Resources DevelopmentNAQDA – National Aquaculture Development Authority of Sri LankaNARA – National Aquatic Resources Research & Development AgencyNIFNE - National Institute of Fisheries and Nautical EngineeringRFMO – Regional Fishery Management Organization

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CONTENTS

1. THE FISHERIES SECTOR: AN OVERVIEW

1.1. Contribution to the National Economy1.2. Resource Base1.3. Government Institutions dealing with Fisheries

2. MIDTERM REVIEW OF THE IMPLEMENTATION OF THE FISHERIES SECTOR DEVELOPMENT STRATEGY 2010 – 2013 (FSDS) AND EVALUATION OF ITS OUTPUTS AND OUTCOMES

2.1. Objectives of FSDS2.2. Outputs and Outcomes

2.2.1. Marine Fisheries2.2.1.1. Production Targets2.2.1.2. Interventions

2.2.2. Inland Fisheries & Aquaculture2.2.2.1. Production Targets2.2.2.2. Interventions

2.2.3. Midterm Progress of Achievements of National Fish Production Targets2.2.4. Fish Marketing2.2.5. Export Fisheries & Aquaculture

2.2.5.1. Production Systems2.2.5.2. Midterm Progress

2.2.6. Fishing Community2.2.6.1. Enhancement of Socio-Economic Status

3. ISSUES AND CONSTRAINTS ENCOUNTERED IN THE PROCESS OF IMPLEMENTATION OF FSDS

3.1. Budgetary Allocations3.2. Marine Fisheries3.3. Inland Fisheries & Aquaculture3.4. Research3.5. Fish Marketing3.6. Fish Exports

4. ROADMAP 2013 – 2016

4.1. Policy Directions4.2. Specific Objectives and Targets4.3. Major Issues and Constraints4.4. Strategies for Achievement of Objectives4.5. Research4.6. Implementation4.7. International Cooperation4.8. Investment

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1. THE FISHERIES SECTOR: AN OVERVIEW

1.1. Contribution to the National Economy

Fishing has been an important economic activity in the coastal areas of Sri Lanka since time immemorial. Fish has been the main source of animal protein for the masses throughout the history. Fisheries have also been a source of government revenue particularly during the colonial era. Fishing that had been confined to coastal waters prior to 1960s, has since then expanded over the offshore and deep-sea waters, and inland waters. Fisheries have also become a source of employment not only in the coastal belt of the country, but also in the inland reservoir districts. Fisheries also contribute to the national economy as a source of foreign exchange.

The fisheries industry has over the years contributed on an average 1.2% to the GDP. It has provided employment both directly and indirectly to over 600,000 persons. The national fish production in 2011 was 444, 830 MT, comprising 385,270 MT of marine fish and 59,560 MT of inland fish. The country earned an amount of Rs. 21,876 million in foreign exchange in 2009 by exporting and fish and other fishery products. Fish contributes about 70 percent to the animal protein intake of the masses.

Medical authorities recommend an annual per-capita consumption of 22 kg of fish to satisfy the minimum requirement of animal protein for a person. With the objective of reaching this level of fish availability, the Ministry of Fisheries and Aquatic Resources Development envisages increasing the national fish production to 685,000 MT by 2013. This is an increase over 100 % compared to the 2009 level, which was 339,000 MT. MFARD also envisaged increasing fish exports to 36,000 MT by 2013 from a level of 18,000 MT in 2009 again an increase of 100 %. With the cessation of the three decade long civil war in the Northern and Eastern Provinces, rich fishery resources in those areas have become accessible and therefore achievement of these targets will not be difficult. The advent of peace has also increased the investors’ confidence and thereby the potential in private sector investments in fisheries.

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National Fish Production 2011 (MT)MarineCoastal 222,350Offshore & deep-sea 162,920Sub-total 385,270

Inland & AquacultureInland 50,050Fish aquaculture 5,360Shrimp aquaculture 4,150Sub-total 59,560

Total 444,830

Operational Fishing Fleet 2011MarineMultiday 3,872Single-day (with inboard engine) 1,120FRP (with outboard motor) 19,890Traditional modified with motor 2,960Traditional 20,430Sub-total 48,272

Inland 8,030

1.2. Resource Base The marine fisheries resource base of Sri Lanka comprises a territorial sea of 21,500 sq km, an exclusive economic zone (EEZ) of 517,000 sq km, and lagoons and estuaries of 1580 sq km. The country also has an inland fisheries resource base of 5200 sq km that includes irrigation reservoirs, hydro-electric reservoirs, perennial village tanks, seasonal tanks and natural waterholes known as villus.

Figure 1 - The Territorial Sea and Exclusive Economic Zone

1.3. Government Institutions dealing with Fisheries

The Ministry of Fisheries and Aquatic Resources Development (MFARD)MFARD is the ministry of the central government entrusted with the responsibility of development and management of the fisheries sector. MFARD formulates the national fisheries development strategy and the implementation plan generally for a period of six years or the duration of the respective government. MFARD also directly implements programmes and projects for enhancing the country’s fishing capacity, welfare of fisher communities, provision of social infrastructure for fishing villages, promotion of private sector investments, promotion of fishery product exports, and externally funded special projects for development of fisheries. The processes of enactment of new acts, amendment of existing acts, and promulgation of regulations are also initiated and serviced by MFARD. To undertake different activities concerning management and development of fisheries the following government institutions have been established.

Department of Fisheries and Aquatic Resources (DFAR)DFAR is the department of the central government responsible for management, regulation and conservation of fisheries and aquatic resources. Established in 1940 under the provisions of the Fisheries Ordinance (Law No. 24 of 1940), which has now been repealed, it enforces provisions of the Fisheries and Aquatic Resources Act, No. 2 of 1996 and Fisheries (Regulation of Foreign Fishing Boats) Act, No. 59 of 1979. DFAR also undertakes monitoring and surveillance activities in the sea and helps the fishers in distress. It has a network of district offices located in all coastal districts.

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Ceylon Fisheries Corporation (CFC)CFC has been established in 1964 under the State Industrial Corporations Act, No. 49 of 1957 for marketing of fish without prejudice to either the producer or the consumer, and provision of inputs required for the fishing industry. Since late 1980s CFC functions as a self-financing organization and performs its functions in competition with the private sector. It has a 1000-ton cold-room complex at the Colombo Mutwal fishery harbor, and runs over 250 sales outlets in all cities and major towns.

Ceylon Fishery Harbours Corporation (CFHC)CFHC has been established in 1962 also under the State Industrial Corporations Act, No. 49 of 1957. CFHC’s role includes planning, construction, and maintenance of fishery harbours and anchorages. Currently it manages 17 fishery harbours and 40 anchorages. In addition a large fishery harbor that can accommodate 400 multi-day vessels is being constructed at Dickowita (north of the Kelani river estuary). It has four dredgers – a grab-hopper, and three cutter suction dredgers – and a host of heavy machinery required for construction and maintenance of fishery harbours and anchorages. It also provides security services to MFARD and institutions under the purview of MFARD.

National Aquatic Resources Research and Development Agency (NARA)NARA has been established in 1982 under the National Aquatic Resources Research and Development Agency Act, No. 54 of 1981 for the purpose of conducting research and providing advisory and consultancy services on scientific, technological and legal matters relating to exploitation, management, conservation and development of aquatic resources. Its scope covers marine biological resources, inland aquatic resources and aquaculture, fishing technology, post-harvest technology, environmental studies, oceanography, information technology and hydrography. Apart from its main research centre located in Colombo, it runs three regional research centres at Kadolkele (Negombo), Kalpitiya, and Rekawa.

National Aquatic Resources Research and Development Agency (NAQDA)NAQDA has been established in 1998 under the National Aquaculture Development Authority of Sri Lanka Act, No. 53 of 1998. NAQDA’s functions include development and management of the aquaculture industry, and inland fisheries, which are generally culture-based. It operates nine regional aquaculture development centres that provide seed-fish and extension services required for culture-based inland fisheries and aquaculture, a shrimp-farm monitoring unit, and a central aquaculture training facility located at Kalawewa.

Ceynor Foundation Ltd. (CNFL)CNFL is a government owned company registered under the Companies Act, No. 7 of 2007. It manufactures and supplies fishing craft and gear. CNFL has to function in competition with the private sector. It operates three boatyards, which are located at Mutwal, Payagala and Karainagar and manufacture multi-day fishing vessels. Earlier it also operated two fish net factories, one at Lunuwila and the other at Weerawila, but these have now been handed over to North-Sea Ltd, which is also a government owned company functioning under the Ministry of Small Industries .

National Institute of Fisheries and Nautical Engineering (NIFNE) NIFNE established by the National Institute of Fisheries and Nautical Engineering Act, No. 36 of 1999 for the purpose of developing manpower for fisheries and other maritime activities. It was originally functioning under the purview of MFARD, but currently functions under the purview of the Ministry of Youth Affairs and Skills Development. Eight colleges are functioning under NIFNE at Mattakkuliya, Negombo, Jaffna, Trincomalee, Batticaloa, Tangalle, Galle and Kalutara. It runs three types of programmes – certificate courses, diploma courses and degree courses in fisheries and marine science, marine engineering, boat building and naval architecture, fiberglass technology, aquaculture and fisheries management. The Government is in the process of upgrading the status of NIFNE to

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that of a university. It will be named the Ocean University, and its scope will be widened to cover ports, marine transport, non-living marine resources, etc. in addition to fisheries and aquaculture. It has been proposed to set up this university at Kalametiya in the district of Hambantota.

Central Fish Market Complex, PeliyagodaEstablished in 2010 this is one of the most modern central fish marketing complexes in Asia. It has all facilities required for trade and hygienic handling of fish. It caters to whole-sale dealers, retailers and exporters. It is run by a Trust appointed by MFARD.

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Infrastructure Facilities in the Fisheries Sector

Fishery harbours 18Anchorages 40Minor landing sites 860Ice plants 82Cold rooms 29Boatyards 54Fishing gear factories 6Fish processing plants:

- EU approved 25- Other 5

2. MIDTERM REVIEW OF THE IMPLEMENTATION OF THE FISHERIES SECTOR DEVELOPMENT STRATEGY 2010-2013 (FSDS) AND EVALUATION OF ITS OUTPUTS AND OUTCOMES

2.1. Objectives of FSDS

MFARD formulated FSDS in accordance with the national policy stipulated in the government policy document, Mahinda Chintana Forward Vision. In formulation of fish production targets in FSDS, it was assumed that by 2015 the Sri Lankan population would be 21.67 million. Fish production projections in FSDS were made taking 2009 as the base year. The major objectives of the strategy were as follows.

1. Increase per capita fish availability by 2013 to 60 g per day, which is the amount recommended by the Medical Research Institute for per capita consumption to satisfy the animal protein requirements of a person.

2. Increase the national fish production to 685,690 MT by 2013.

3. Establish price competitiveness of fish by promoting competitive marketing.

4. Increase the volume of fish exports to 36,700 MT by 2013 and thereby increase foreign exchange earnings.

5. Increase the living standards and socio-economic status of the fisher community through social empowerment, livelihood diversification, and improvement of civic amenities and infrastructure.

6. Manage fisheries on a sustainable basis with due recognition to obligations under the United Nations Convention on the Law of the Sea and other international treaties concerning fisheries, bio-diversity and marine environment.

FSDS has proposed the interventions in Table 1 below to achieve the above objectives.

Table 1 – Objectives of FSDS and Interventions Proposed to Achieve the Objectives

Objective Interventions Proposed1. Increase per capita fish availability by

2013 to 60 g per day, which is the amount recommended by the Medical Research Institute for per capita consumption to satisfy the animal protein requirements of a person.

1.1. Increase the national fish production (vide Objective 2 below).

2. Increase the national fish production to 685,690 MT by 2013.

2.1. Increase the fishing effort in the coastal and offshore/deep-sea subsectors by increasing the fleet size.2.2. Rehabilitate the fishing activities in the Northern Province.2.3. Reactivate the non-operational beach seines.2.4. Enhance fish stocks in perennial tanks and seasonal tanks by intensifying the fish-seed stocking programmes.

3. Establish price competitiveness of fish by promoting competitive marketing.

3.1. Increase the share of the market handled by the CFC and increase CFC sales outlets.

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4. Increase the volume of fish exports to 36,700 MT by 2013 and thereby increase foreign exchange earnings.

4.1. Increase the production of exportable fish like tunas by enhanced deep- fishing.4.2. Expand shrimp aquaculture.4.3. Enhance production of non-traditional products like seaweed, sea-cucumber, mussel and oyster, sea-bass and ornamental fish that have export potential.

5. Reduce post-harvest losses. 5.1. Improve or establish infrastructure facilities required for quality maintenance of fish.5.2. Promote the use of chilled seawater or refrigerated seawater in multiday boats.

6. Increase the living standards and socio-economic status of the fisher community through social empowerment, livelihood diversification, and improvement of civic amenities and infrastructure.

6.1. Provide fisher communities with basic amenities and housing.6.2. Organize fishers under a national federation.6.3. Provide alternative livelihoods.6.4. Introduce an effective fisher pension scheme.6.5. Enhance access to credit by introducing soft credit schemes.

7. Manage fisheries on a sustainable basis.

7.1. Identify more fisheries management areas and introduce co-management.7.2. Enhance action against destructive fishing methods.7.3. Establish a vessel monitoring system and act against IUU fishing.7.4. Enhance regional co-operation in fisheries management.

8. Orient the industry to conform to the obligations under the UN Law of the Sea Convention and other international treaties related to fisheries.

8.1. Implement resolutions adopted by IOTC and FAO Code of Conduct for Responsible Fisheries.

2.2. Outputs and Outcomes

2.2.1. Marine Fisheries

2.2.1.1. Production TargetsTraditionally marine fisheries have been the most important economic sector in the coastal belt of Sri Lanka, both in terms of the value of the product, and contribution to the livelihoods. It has also significantly contributed to export earnings of the country. It has two subsectors – coastal fisheries, and offshore/deep-sea fisheries that also include high-seas fisheries. FSDS has fixed the following targets for marine fish production (Table 2).

Table 2 - Marine Fisheries Production Targets (MT)

2009 2010 2011 2012 2013Coastal fisheries 180,410 197,400 216,000 236,370 258,600Offshore/Deep-sea fisheries 112,760 151,900 200,200 259,530 332,300Total production 293,170 349,300 416,200 495,900 590,900

2.2.1.2. Interventions

Enhancement of Fishing Effort in Marine WatersFSDS envisaged increasing the fishing effort both in coastal fisheries and offshore/deep-sea fisheries by introducing new craft of all categories, i.e. traditional craft, motorized traditional craft (traditional

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craft modified by fixing outboard motors), OFRP boats (fiberglass reinforced plastic boats fitted with outboard motors), IDAY boats (single-day boats fitted with inboard engines), multi-day boats, and beach seines. Table 3 gives the composition of the fishing fleet in 2009 and the expected annual increase up to 2013.

Table 3 – The Fishing Fleet: Strength in 2009 and Expected Annual Increase 2010-2013

Type of Craft Strength in 2009

Expected Annual Increase 2010 2011 2012 2013

Traditional craft

18,243 267 - - -

Motorized traditional craft

2,126 183 760 - 779

OFRP boats 17,193 50 290 1,227 1,000IDAY boats 958 - 100 100 100Multi-day boats 2,934 80 + 32¹ 100 + 68¹ 180 156Beach seines 340 150² 190² - -

¹ No. of non-operative multiday boats expected to recommence operation.² No. of non-operational beach seines expected to recommence operation.

Rehabilitation of Fisheries in the Northern ProvinceMarine waters off the Northern Province are rich in fish resources. However, due to the 30 year long war it has not been possible to optimally exploit these resources. After the war, a programme was commenced for rehabilitation of the fishing fleet and fishery infrastructure facilities in the Northern Province. Table 4 gives the fishing fleet development plan for the Northern Province.

Table 4 – Fishing Fleet Development Plan for the Northern Province

Boat category New Introductions2010 2011 2012 2013

OFRP boats 500 1050 1227 1779IDAY boats - 100 100 100

Midterm progress of implementation of the interventions to increase the national fish production from the coastal and offshore/deep-sea subsectors is given in Table 5. Figures include progress of the interventions made for rehabilitation of fisheries in the Northern Province too.

Table 5 – Midterm Progress of Expansion of the Fishing Fleet in Coastal and Offshore/Deep-Sea Subsectors

Expansion of the Fishing Fleet 2010 2011Target Achievement Target Achievement

Traditional craft, IDAY,MTRB,NTRB 40,000 33,030 (83 %) 38,500 34,246 (89 %)OFRP boats (with boats under the Plan for the Northern Province)

550 414 (75 %) 1340 10,134

IDAY boats (with boats under the Plan for the Northern Province)

- - 100 Nil (0%)

Multi-day boats (with reactivated boats)

112 98 (88 %) 168 157 (93 %)

Beach seines (with reactivated seines)

150 98 (65 %) 190 153 (80 %)

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Fuel SubsidyWhen the Government had to increase fuel prices in 2012 fishing boats were provided with a one-time subsidy at the rate of LKR 31,200 per multi-day boat, LKR 19,200 per IDAY boat, and LKR 9,375 per OFRP and motorized traditional boat. The total amount paid under the fuel subsidy scheme was LKR 286.4 million. Policy ReformsThe following policy reforms were also made by making regulations under provisions of the Fisheries and Aquatic Resources Act or other Acts where relevant.

Declaration of more fisheries management areas to undertake fisheries co-management Cancellation of fees levied for registration and renewal of registration of fishing boats,

issuance of fishing operation licenses, issuance of permits for collection, transport, keeping in possession, trade, export, etc. as applicable for lobster, chank and sea-cucumber

Banning of the use, possession, import, transport, purchase or sale of monofilament nets Banning of trawl fishing operations except by non-mechanized canoes Compulsion of the use of live-jackets in fishing boats Exemption of the sector from paying income tax for a period of 5 years Provision of a fuel subsidy

These reforms were made with the objective of preventing over-exploitation of fishery resources and enhancing their management, preventing fishing disputes among different fisher groups, reducing costs related to fishing, protecting of fishers from accidents in sea and encouraging investments in the sector. These policy changes are also applicable to inland fisheries where relevant.

Other InitiativesFSDS included some other initiatives like encouragement of small-scale fishers particularly IDAY boat fishers to change their fishing gear by replacing gillnet with long-line, and carry fish holder boxes with ice onboard etc. Objectives of these initiatives were to introduce selective fishing, which is more resource-friendly, and enhance the quality of fish landed. Fishers were also helped with subsidized bank loans to procure larger boats (20 – 30 m) capable of fishing in international waters. However, these initiatives have not been successful as fishers have continued to resort to their old practices without changing to recommended practices.

Figure 2 - Interventions proposed in FSDS for Marine Fisheries

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2.2.2. Inland Fisheries & Aquaculture

2.2.2.1. Production Targets

Compared to fish produced by marine fisheries, fish produced by inland fisheries and inland aquaculture is cheaper, and helps maintain fish prices within a reasonable range. Thus inland fisheries benefit particularly the rural poor and the estate sector who cannot afford to consume marine fish by providing them with an alternative source of animal protein, which is cheap. Inland fisheries also provide livelihoods to the rural communities in the interior districts. Aquaculture, particularly coastal aquaculture also contributes to export earnings through the production of exportable aquaculture products such as shrimp, sea-bass, etc. Table 6 gives the production targets fixed by FSDS for its period of implementation.

Table 6 – Inland Fisheries & Aquaculture Production Targets (MT)

2009 2010 2011 2012 2013Inland fisheries 39,030 46,600 55,700 66,500 79,500Inland aquaculture 3,980 4,700 5,700 6,800 8,100Coastal aquaculture 3,550 4,200 5,000 6,000 7,200Total 46,560 55,500 66,400 79,300 94,800

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MarineFisheriesIntroduction of small scale fishing vesselsRe-activation of non-operational beach seines and multi-day boatsValue addition to productionEncouragement of private sector investmentsEncouragement of the use of long lines CSW/RSW in multi-day boats and quality handling practices Introduction of multi-day long line boats Policy changes, rivision of the Act and regulationsIntegrated awareness creationOrganization of fishers at local, district & natioal levelsDivi Naguma ProgrammeLoan schemes, pension scheme and insurance schemes

2.2.2.2. Interventions

Stocking of Perennial Reservoirs with Seed-fishFSDS envisaged implementing several activities to achieve the targets fixed for inland fisheries production. Emphasis was given to perennial reservoirs since they make the biggest contribution to inland fisheries production. In 2010 major and medium perennial reservoirs produced 55 % of the total inland fisheries production, while minor perennial reservoirs produced 22 %. To enhance the fishable stocks in the perennial reservoirs, selected reservoirs were stocked with fish fingerlings, and their management was improved with the support of the fisher community. Management of the stocks in these reservoirs was also significantly increased. Table 7 gives the target and achievement of seed-fish production, while Table 8 gives the total number of seed fish stocked in reservoirs and the amount of fish produced from reservoirs.

Table 7 – Seed-fish Production (million)

2009 2010 2011 2012Target 29 30 42 55Achievement 27.9 (96 %) 34.9 (116 %) 44.8 (107 %) 23.4 (Jan-Jul)

Table 8 – Fisheries in Perennial Reservoirs

Total Area (ha) No. of Seed-fish Stocked (million)

Fish Production (MT)

2009 95,331 21.99 39,0302010 100,999 26.48 44,3802011 96,651 35.08 50,050

Utilization of Seasonal Reservoirs for Inland AquacultureSeasonal reservoirs scattered in the dry zone of the country provide good potential for fish production through inland aquaculture. Table 9 gives the number and total area of seasonal reservoirs used for aquaculture and fish production obtained.

Table 9 – Aquaculture in Seasonal Reservoirs

No. of Tanks Total area (ha) Fish Production (MT)2009 334 3,329 3,9302010 450 4,675 4,4902011 535 5,885 5,360

Utilization of Abandoned Shrimp Ponds for Alternative Coastal AquacultureA large number of brackish-water ponds covering an estimated extent 2500 ha, which had been used a few years back for shrimp farming remains abandoned. NAQDA has identified that these shrimp ponds could be utilized for aquaculture of alternative species such as milkfish, sea-bass and tilapia, which are cultivable in brackish-water ponds. However, the lack of fish seed has become be a major constraint for this. To overcome this problem NAQDA has taken steps to establish hatcheries for production of milkfish and sea-bass seed through public-private partnerships. Breeding in captivity of these two species is in progress and it is anticipated that their commercial-scale breeding would be possible by the end of 2012.

Utilization of Estate Ponds for Pond Aquaculture

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It has been identified that estate ponds has the potential for production of fish through pond aquaculture. Currently only around 60 MT of fish is produced annually by estate ponds. It is proposed to develop culture of freshwater fish and freshwater prawn in 350 estate ponds in 2012 under the Divi Neguma programme. It has been estimated that this programme will produce 350 MT of fish.

Rehabilitation of Inland Fisheries in the Northern ProvinceUnder this programme 640 Nos. of canoes with the required gillnets were provided to fishers in 35 perennial tanks. These reservoirs produced 810 MT of fish in 2010. With the expansion of the fishing effort and improvement of management it is expected that the fish production from these reservoirs would increase significantly. Additionally, two lagoons namely, Nandikadal and Chundikulam were identified for stock enhancement with shrimps on a pilot scale. Stock enhancement of Nandikadal Lagoon is already under progress while that of Chundikulam Lagoon was expected to commence in 2012. Expected annual fish production from Nandikadal and Chundikulam lagoons are 13 MT and 180 MT respectively. The production may increase with the stocking of shrimps and improved management.

Shrimp AquacultureThe area under shrimp aquaculture in 2010 and 2011 was around 1200 ha and 1600 ha respectively. In 2010 shrimp production from aquaculture was 3480 MT. In 2011, the shrimp aquaculture production increased to 4150 MT, which was 86 % the target fixed for the year. Recurrence of white-spot disease and impacts of climate change seemed to have affected shrimp farming quite adversely. A further factor negatively impacting on shrimp farming development in accordance with the planned schedule was the issues related to release of lands to investors and resultant delays. In year 2011, some progress was made in Batticaloa as several abandoned shrimp farms in Ottamavadi and Kokadicholei were revitalized and put back into operation. NAQDA has set up a shrimp hatchery at Puddikudirippu to produce shrimp post-larvae required for farming in that area. By mid 2012, the NAQDA hatchery had supplied a total of 9 million of post-larvae to shrimp farms in Ottamavadi and Kokadicholei.

Non-traditional AquacultureThis is one of the newly emerging aquaculture systems that have the potential to contribute significantly to the economic development of the country. Several pilot projects on sea- cucumber fattening, sea-bass cage culture and oyster culture have become successful. Under an MOU signed with the Government of Vietnam, an expert is scheduled to visit in November 2012 to design a sea-cucumber hatchery, which is proposed to be established at Olethuduvai in the Mannar district. A seaweed seed bank for Euchema is being established by a Japanese investor and its production is expected to commence soon. One of the prominent biscuit manufacturers in the country (Munchi Biscuit Ltd.) is engaged in seaweed farming with the involvement of the community in Punichchankerni, Batticaloa.

Culture of Indigenous Food FishNAQDA has also commenced a programme to conserve and develop species of food fish that are indigenous to Sri Lanka. Under this programme, brood-stocks of mahsier ( lella), freshwater shark (walaya), stinging-catfish (hunga) and butter-catfish (walapoththa) are being maintained at the Aquaculture Development Centres. Attempts to breed stinging-catfish and butter-catfish in captivity at the Inginiyagala Fish Breeding Centre have been successful.

Strengthening of Extension Network

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At present there are 285 CBOs associated with inland fisheries aquaculture. With the objective of providing improved extension services to fish farmers and inland fishers NAQDA has strengthened its extension services by appointing or newly recruiting the required manpower, which includes 3 Directors, 4 Asst. Directors, 11 Aquaculturists, 31 Aquaculture Extension Officers and 7 Aquaculture Assistants.

Enhancement of Fish-Seed ProductionInfrastructure facilities necessary for an enhanced fish-seed production programme are being developed. Fish fingerling production is conducted in accordance with a preplanned programme, and targets have been achieved 100 %.

2.2.3. Midterm Progress of Achievement of the National Fish Production Targets

National fish production statistics indicate that a significant progress has been made in increasing the fish production both from the marine fisheries sector and inland fisheries and aquaculture sector in 2010 and 2011 (Table 10).

Table 10 – Midterm Progress of Marine Fisheries Production (MT)Production

in 20092010 2011

Target Achievement Target AchievementCoastal fisheries 180,410 197,400 202,420 (102 %) 216,000 222,350 (103 %)Offshore/Deep-sea fisheries 112,760 151,900 129,840 (85 %) 200,200 162,920 (81 %)Total marine fisheries production

293,170 349,300 332,260 (95 %) 416,200 385,270 (93 %)

Inland fisheries & aquaculture

46,560 55,500 52,410 (94 %) 66,400 59,560 (90 %)

Total national fish production

339,730 404,800 384,670 (95 %) 482,600 444,830 (92 %)

Compared to the total marine fish production in 2009, the total marine fish production in 2010 and 2011 has increased by 11 % and 31 % respectively. Similarly compared to 2009, inland fisheries & aquaculture production has increased by 13 % and 28 % respectively. Compared to 2009 the national fish production shows a growth of 13 % and 30 % in 2010 and 2011 respectively.

2.2.4. Fish Marketing

The major share of fish marketing in Sri Lanka is handled by the private sector while less than 10 % is handled by CFC. In order to ensure that the fish prices are affordable to consumers by strengthening the competition in the fish market, certain degree of market interventions through CFC is necessary. With the involvement of CFC on fish purchasing and selling, it is also envisaged that the margins kept by middlemen at the undue expense of the fishers as well as the consumers can be reduced. However, CFC has not been able to influence fish prices due to the fact that the volume of fish handled by CFC is insignificant. Being a government agency, it is difficult for CFC to compete with the private sector, as it cannot provide credit to fishers when they request, and adjust fish prices frequently as required by the market. The weak liquidity position of the CFC, its deteriorated infrastructure facilities and substandard retail outlets are some of its other disadvantages. Taking these drawbacks into consideration, some measures such as opening and refurbishment of outlets, upgrading infrastructure facilities and opening new purchasing centers have been implemented as given in FSDS. However, these measures have not proved adequate to compete with the private sector. Table 11 gives the number of new fish stalls set up by CFC.

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Table 11 - No. of New Fish Stalls set up by CFC

2009 482010 752011 103

2.2.5. Export Fisheries and Aquaculture 2.2.5.1. Production Systems The fisheries sector has emerged over decades as an important source of foreign exchange to the country. The important export products include tuna, shrimp, lobster, ornamental fish and shark-fins, which fetch high values and traditional products such as sea cucumber and chank. Tuna, lobster and shark-fins are essentially products of marine fishing, while shrimp and ornamental fish are produced both by fishing and aquaculture. Private sector companies have significantly invested in infrastructure facilities such as deep-sea fishing vessels with onboard cooling facilities, fish processing factories, shrimp farms and ornamental fish farms. The Government has set up a Fish Product Quality Control Unit in DFAR with highly trained staff to ensure that the quality and safety of fish products produced for export meet the international requirements. Export fisheries and aquaculture also have provided a significant number of employment opportunities to different categories – graduates, technicians, office workers, skilled and non-skilled labourers, security personnel, etc.

As tunas are deep-sea fish, their production needs larger boats equipped with onboard fish preservation facilities. Therefore increasing its production volume requires high capital investments. FAO, IOTC and other regional fishery management organizations have expressed concern over sustainability of the shark-fin industry. Even the lobster fishery, sea-cucumber fishery, marine ornamental-fish fishery and chank fishery have to be managed carefully in order to prevent over-exploitation. Therefore there is no much scope for increasing the volumes of most export fishery products except those which could be produced by aquaculture such as shrimp and freshwater ornamental fish. Further increasing volumes of export fish products may affect the local supplies of fish. Therefore other options like value addition, enhancement of quality, environmental certification and organic certification, development of new export products, etc. have to be used for increasing export incomes. It is also necessary to meet Sri Lanka’s international commitments like prevention of IUU fishing and protection of sea turtles and marine mammals in order to sustain the important international markets like the EU market and US market for our fishery products.

2.2.5.2. Midterm Progress

FSDS has not fixed specific targets for export development. However, it has envisaged the following volumes to be exported during its period (Table 12).

Table 12 – Envisaged Fish Export Volumes 2009 2010 2011 2012 2013

Volume of Exports (MT) 18,199 21,700 25,855 30,800 36,700

Table 13 gives the total export volumes and incomes during the period 2009 – 2011.Table 13 – Export Volumes and Values

Export Volume (MT) Export ValueLKR million USD million

2009 18,714 21,015 18317

2010 18,325 19,834 1752011 18,462 21,876 167

The Table indicates that that there has not been any significant development of fish exports since 2009. Although the volume has remained more or less the same, the value in USD terms has slightly but continuously reduced.

2.2.6. Fishing Community

2.2.6.1. Enhancement of Socio-economic Status

Several new programmes have been designed and commenced implementation for the purpose of enhancing the socio-economic status of the fisher community, in addition to conventional activities like provision of sanitary facilities and improvement of social infrastructure in fishery villages. These new programmes are the organization of fishers under an all-island fisheries federation with tiers at local level and district level, introduction of a fisheries pension scheme, and introduction of a fisheries insurance scheme. Further under the Divineguma Programme fisher community members are provided with loans to commence micro-projects. Table 14 gives the targets fixed for the new programmes.

Table 14 – Programmes for Socio-Economic Enhancement of Fisher Community

Programme Indicator Target2009 2010 2011 2012 2013

Organization of fishers No. of societiesFisheries pension Scheme No. of members - - - - 5000Fisheries insurance scheme No. of boats 2039 3210 3019 3252 8000Divineguma No. of micro-projects 1500 2000 3000

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3. ISSUES AND CONSTRAINTS ENCOUNTERED IN THE PROCESS OF IMPLEMENTATION OF FSDS

3.1. Budgetary Allocations

Major activities of FSDS were expansion and improvement of the coastal and offshore/deep-sea fishing fleet, development of fishery infrastructure and procurement of equipment, development of inland fisheries & aquaculture, and physical facilities for fish marketing. Table 15 gives the budgetary estimates made for implementation of these activities.

Table 15 – Budgetary Estimates for Implementation of Major Activities of FSDS (LKR million)

Activity 2010 2011 2012 2013Enhancement of the coastal & offshore/deep-sea fishing fleets

42.25 41.33 95.50 41.80

Inland fisheries & aquaculture 81.00 101.58 186.45 192.00Infrastructure and equipment 3,237.71 1,116.87 995.50 200.00Fish marketing 1,872.00 3,734.00 7,725.00 16,957.00Total 5,232.96 4,993.78 9,002.45 17,390.80

However, the amount allocated by the Treasury was significantly lower than the estimates of most activities. Table 16 gives the budgetary allocations made by the Treasury for implementation of major activities of FSDS, and shortfall between the estimates and the allocations.

Table 16 – Budgetary Allocations made by the Treasury for Implementation of Major Activities of FSDS with Shortfall between the Estimates and Allocations (LKR million)

2010 2011 2012Activity Allocation Shortfall Allocation Shortfall Allocation ShortfallEnhancement of the coastal & offshore/deep-sea fishing fleets

37.73 4.53 29.55 11.78 83.20 12.30

Inland fisheries & aquaculture 50.00 31.00 50.00 51.58 91.00 95.45Infrastructure and equipment 3595.13 (357.42) 704.90 411.97 1007.50 (12.00)Fish marketing 1195.94 676.06 1829.80 1904.20 - 7725.00Total 4878.80 354.17 2614.25 2379.53 1181.70 7820.75

3.2. Marine Fisheries

FSDS proposed to increase of large vessels capable of engaging in high-sea fisheries. However, it was not possible to attract investments in offshore/deep-sea subsector. Even attempts to establish joint-ventures with CFC for high-sea fishing were not successful. It is proposed to amend the State Industrial Corporation Act, No. 49 of 1957 with a view to making provisions that will enable CFC to establish joint-ventures in order to facilitate deployment of a fleet comprising larger boats of over 24 m for high-sea fishing.

Although FSDS envisaged in increasing the multi-day fishing fleet in the EEZ, fishers have found it

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difficult to invest in multi-day boats owing to the high capital and operational costs involved. According to the government policy no foreign vessels are allowed to fish in the EEZ. Therefore the available option is to encourage local entrepreneurs to invest in multi-day vessels by providing subsidized bank loans.

It has also not been possible to induce fishers to replace gillnet with long-line, carry ice onboard the boats, etc. as envisaged. Accordingly moves to enhance management of resources through the replacement of gillnet with long-lines, and quality of fish landed to suit export market requirements have failed affecting the envisaged increase in export earnings.

In the coastal fisheries subsector, fish production from the Western, South-Western and the Southern segments appears to have already reached or be fast reaching the maximum sustainable yield levels. Therefore further increases of coastal fish production could come only from the Northern and the Eastern coastal segments. This means that the coastal fisheries subsector needs careful management in order to prevent over-exploitation. However, it is doubtful whether the present management regime could ensure sustainability of the coastal fisheries resources. Although legal provisions available are adequate to manage the coastal fisheries, it has not been possible to control the rate of proliferation of small boats and the use of resource destructive fishing methods. The main reason for this situation is the open access policy adopted for fisheries, shortage of management staff and the lack of physical resources such as vehicles and monitoring boats.

3.3. Inland Fisheries and Aquaculture

Many areas of the country had experienced heavy rains during 2010 and early part of 2011, and as a result most reservoirs had spilled over and particularly small perennial reservoirs and seasonal reservoirs had suffered damages. In addition, seed-fish production did not reach the expected levels, and therefore the programme for stocking of reservoirs with seed-fish could not be implemented as planned. An intensive and integrated programme that includes reconstruction of damaged reservoirs, periodic stocking of reservoirs with seed-fish, provision of boats and fishing gear and provision of extension services needed to be implemented to rehabilitate inland fisheries and aquaculture in the Northern and Eastern Provinces. This programme suffered due to lack of manpower and physical resources. Further in the absence of fish hatcheries in the respective areas, seed-fish required for stocking of reservoirs had to be obtained from hatcheries in other areas such as Dambulla and Udawalawa. Due to the long distances involved in transport and limitation of the production capacities in the breeding centers, reservoirs could not be stocked adequately. Further, brood stocks have not been subjected to genetic improvement, and that has resulted in lower performance in breeding. All these have affected the productivity of reservoir fisheries.

3.4. Research

Aquatic resources research and development is one of the most significant services required for fisheries sector development. However, due to several institutional weaknesses, the aquatic resources research and development services in the country have not been able to contribute adequately to the development of fisheries sector. The scientific research on aquatic resource development has not identified addressed the crucial issues in development of the fisheries sector. Further, the research initiatives have not been adequate. There is a vacuum between the scientific research and development activities in the fisheries sector. This weakness could mainly be seen in the poor communication that has prevented even the limited research findings from dissemination to the prospective users.

3.5. Fish Marketing20

FSDS has envisaged enhancing the market share of CFC with a view to controlling fish prices, so that the prices would remain within the reach of the consumer. However, due to lack of capital and management deficiencies, CFC has not been able to increase its market share substantially as FSDS has envisaged.

3.6. Fish Exports

Since 2010, major international market partners of Sri Lanka such as EU has imposed stringent regulations on fish imports and have introduced a catch certification system to curtail IUU fishing. In addition the RFMOs such as IOTC exert heavy pressure on its member countries to curtail IUU fishing by means of introducing compliance requirement on fishing and fish export. This situation has led to a state of affairs which is unfavorable to increase fish exports.

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4. ROADMAP 2013 – 2016

4.1. Policy Directions

The policy guidelines given in Mahinda Chintana Vision for the Future - The Development Policy Framework of the Government of Sri Lanka in regard to development of the fisheries sector were used as the guiding principles for preparation of the Roadmap 2013. The directions given in Mahinda Chintana are as follows.

“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 policy direction are specified as follows.

Diversification of production and exploitation of offshore and deep sea fisheries resources through the introduction of modern technology giving high priority to efficient fishing methods. It is also planned to reduce pressure on coastal resources through the implementation of fisheries management programmes.

Sri Lanka possesses suitable water bodies throughout the country for developing a viable inland fishing. Thus developments of freshwater capture fisheries and aquaculture in inland water bodies have also been identified as a viable industry. This can be implemented through increasing fish seed production and introducing them into minor and seasonal tanks with the support of community based fisheries management.

High post harvest losses and lack of knowledge in handling of fish have been identified as a serious impediment to marketing and producer price in the fishing industry. The requirement of prevention of such losses has been given priority in the development plan.

Inadequate and poorly managed fisheries infrastructure has considerably slowed down the development of the fishing industry. Hence, infrastructure facilities will be improved to exploit the fish resources and reduce post harvest losses.”

Commitments made by Sri Lanka under the UN Law of the Sea Convention and international treaties concerning conservation and management of marine fisheries resources, protection of marine environment and conservation of biodiversity, and requirements of international markets were also taken into consideration in the development of strategies to meet the goals given in Mahinda Chintana Vision for the Future.

4.2. Specific Objectives and Targets

The specific objectives of the Roadmap are as follows.

To increase the national fish production and per capita availability of fish.

To improve the quality of fish landed and eliminate post-harvest losses or reduce to insignificant levels.

To increase fish exports.

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To improve fisheries management to ensure long-term sustainability of the resources.

To improve social-security of the fisher community.

It is expected that the outcome of the achievement of the above targets will be improvement of the nutritional status of the masses, increased employment opportunities, increased foreign exchange earnings, improvement of the socio-economic status of the fisher community, and improvement of physical and social infrastructure. Targets related to the specific objectives of the Roadmap 2013 -2015 are given in Table 17.

Table 17 – Targets for Achievement of Objectives of Roadmap 2013 – 2016

Objective Area Activity Area 2013 2014 2015 2016National Fish Production (MT)

Offshore/deep-sea fisheries 332,300 383,200 452,900 538,900Coastal fisheries 258,600 284,500 301,600 313,700Inland fisheries & aquaculture 86,800 96,800 105,700 116,100Coastal aquaculture 8,000 8,900 10,000 11.200Total 685,700 773,400 870,200 980,400

Improvement of quality of fish landed and reduction of post-harvest losses: Indicator daily use of ice (MT)

2000 2,600 3,600 5,000

Fish exports (MT) Offshore/deep-sea products (e.g. tuna, shark-fins)

26,000 30,600 39,700 54,400

Conventional coastal products (e.g. lobster, crab, sea-cucumber, chank)

4,800 5,300 5,700 6,000

Non-conventional coastal products (e.g. squid, cuttlefish, octopus)

100 1,100 2,000 4,000

Ornamental fish Not quantified in terms of weight.Coastal aquaculture products (e.g. shrimp, sea-bass, seaweed)

5,800 7,000 9,800 15,700

Total 36,700 44,000 57,200 80,100Improvement of fisheries management: Indicator No. of fishery management areas with efficient co-management

60 80 110 150

Improvement of social security of the fisher community

Fisheries pension scheme: No enrolled

5,000 6,000 7,000 8,000

Fisheries insurance scheme: No. enrolled

8,000 9,000 10,000 11,000

Divineguma micro-credit scheme: No. of loans issued

3,000 4,000 5,000 6,000

4.3. Major Issues and Constraints

The following issues and constraints have been identified by Mahinda Chintana as obstacles in achievement of the above objectives.

1. The low level of technology is hampering optimal exploitation of deep-sea resources.2. Investments by the private sector in large-scale infrastructure development and deep-sea

fishing are inadequate.3. Post-harvest losses are relatively high (30%), and market chain and transport facilities for fish

are poor.4. Aquatic environment including the coastal environment has degraded and its management is

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poor.5. Reliable and up to date marine fisheries and inland fisheries resource data are not available.6. The fishing capacity is not commensurate with the extent of fisheries resources. Boats

capable of fishing in deep-sea waters account for only 9 % of the total marine fleet, and 43 % of the operating boats are non-mechanized traditional boats. Most of the other boats are outboard-engine powered boats.

4.4. Strategies for Achievement of Objectives

Table 18 gives the strategies for achievement of objectives in Roadmap and constraints.

Table 18 – Strategies for Achievement of Objectives of Roadmap 2013 – 2016 and Constraints

Objective Strategies Constraints1. To increase the national fish production and thereby the per capita availability of fish.

1.1. Increase production from high-sea fisheries.

1.1.1. Lack of larger boats (boats over 24 m) and technology

1.2. Increase production from offshore fisheries.

1.2.1. Insufficient multi-day boats1.2.2. Insufficient harbor facilities to accommodate multi-day vessels

1.3. Enhance fishing effort in North and East.

1.3.1. Large-scale poaching by Indian fishers.

1.4. Maintain production from coastal fisheries.

1.4.1. Continuous increase in fishing effort due to open-access policy.

1.5. Increase production from inland fisheries.

1.5.1. Lack of hatchery facilities to produce large quantities of seed-fish.

1.6. Increase production from aquaculture

1.7.1. Competition from other sectors for land and water.

2. To improve the quality of fish landed and eliminate or reduce post-harvest losses to insignificant levels.

2.1. Increase awareness of fishers and fish handlers in quality maintenance of fish.

2.1.1. Difficulty to change attitudes and traditional fish handling practices.

2.2. Develop facilities for quality handling of fish at fishery harbours, anchorages and other landing sites

2.2.1. High cost of establishment and maintenance of facilities for quality handling of fish.

2.3. Increase ice supply and cold chain transport facilities

2.3.1. High cost of capital.

2.4. Make and enforce regulations

3. To increase fish exports and thereby increase foreign exchange earnings.

3.1. Promote the use of onboard cooling facilities such as chilled seawater.

3.1.1. High cost of capital.

3.2. Promote establishment of fish processing facilities with HACCP and other international standards.

3.2.1. High cost of capital.

3.3. Diversify export fisheries and aquaculture products

3.3.1. Lack of technology.

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3.4. Update production processes to meet international requirements

3.4.1. Continuous change of requirements imposed by importing countries like EU.

4. Improve fisheries management to ensure long-term sustainability of the resources.

4.1. Update legislation to facilitate management.4.2. Establish a VMS system

4.2.1. High capital and operational cost

4.3. Declare more fisher management areas and promote co-management.4.4. Eliminate IUU fishing. 4.4.1. Lack of an efficient VMS.

4.5. Research

Research is important in many ways for development of fisheries and aquaculture. To make decisions concerning management of fisheries and aquaculture resources it is essential to have information concerning their health and potential for production. To generate this information it is necessary to conduct periodic resources surveys or assessments. It is also necessary to develop new technologies which are resource-friendly to harvest resources particularly in high-seas where competition from other nations is very high. Emerging issues like climatic change also have to be studied in detail in order to formulate strategies to address them. Consumer preference is changing and therefore new products have to be developed particularly for the export market to sustain export income from fish exports. NARA being the lead agency responsible for aquatic resources research will prepare its research agenda in consultation with all stakeholders in the sector, that include government agencies involved in management, development and services, fisher community, private sector companies engaged in fishing, aquaculture and other businesses related to fisheries and aquaculture, environmental agencies, and NGOs active in the fisheries sector. It will also provide research information and advisory and consultancy services in an effective manner.

4.6. Implementation

Private sector, both local and foreign will be invited to invest in selected areas, particularly high-sea fishing, offshore & deep-sea fishing, ice plants, cold storages, and fish transport chains, export-oriented aquaculture, fish processing establishments including canning factories, boatyards and fishing gear factories, and production of other inputs required for the fishing industry such as fish transport boxes. Such investments will be safeguarded and provided with incentives such as tax concessions under the BOI scheme. However, no investment will be allowed to enhance fishing activities in the coastal subsector.

Fishers will be encouraged to replace traditional craft with multi-day boats, IDAY boats or OFRP boats, and gillnets with long-lines with subsidized loans provided. Intensive awareness campaigns will be conducted on co-management of fisheries, use of ice and quality maintenance of fish. Fishers are being organized at local, district and national levels with the objective of introducing co-management in the respective areas. The Fisheries and Aquatic Resources Act will be amended shortly to provide for co-management and to control fishing activities by Sri Lankan vessels in high-seas and prevent them from unauthorized fishing in waters in other countries.

Outputs in the Roadmap are given in Table 19.

Table 19 – Outputs of the Roadmap 2013 - 2016

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Objective Area Activity Area Output (Additions)2013 2014 2015 2016

National Fish Production

Introduction of high-sea fishing vessels

15 30 45 60

Introduction of multiday boats 150 180 220 300Introduction of IDAY boats 100 500 900 300Introduction of OFRP boats 1,500 1200 1200 1500Establishment of new fishery harbours/Upgrading of anchorages to harbours

1 2 2 2

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Upgrading of minor fish landing sites to anchorages

1 1 2 2

Establishment of fishing gear factories

1 1 1 1

Introduction of reservoir craft 400 400 400 400Stocking of seed fish (millions) 30 40 50 60Establishment of new aquaculture centres or hatcheries (No.)

1 1 2 2

Fish quality improvement

Setting up of new ice factories (Increased ice supply (MT))

100 500 1000 1400

Improvement of quality related infrastructure at fishery harbours and anchorages (No. of harbous/anchorages)

8 10 12 12

Development of awareness (No. of fishers and fish handlers)

2000 2000 2000 2000

Fish exports Establishment of fish processing zones at Negombo, Beruwala, Galle, Mirissa, Hambantota and Batticaloa with infrastructure (No. of zones)

1 1 1 1

Larger boats and multi-day boats to use onboard cooling facilities

100 150 200 250

Development of export oriented aquaculture (No. of farms including cage farms)

250 750 1000 1000

Certification (MSC, organic, etc,) of export projects (No. of projects)

10 10 10 10

Fisheries management

Updating of legislation x - - -Establishment of a VMS system X - - -Establishment of fishery management areas with co-management (No. of areas)

20 20 20 20

Withdrawal of non-mechanized traditional craft (No. withdrawn)

- 400 600 1000

Improvement of social security of the fisher community

Fisheries pension scheme ( No. enrolled)

5,000 6,000 7,000 8,000

Fisheries insurance scheme (No. enrolled)

8,000 9,000 10,000 11,000

Divineguma micro-credit scheme (No. of loans issued)

3,000 4,000 5,000 6,000

4.7. International Cooperation

Sri Lanka is a party to the United Nations Law of the Sea Convention, which is the most important international instrument in governing activities related to oceans. Sri Lanka has also ratified the UN Fish Stocks Agreement that provides for management of straddling and highly migratory fish stocks, and is a member of IOTC, which is the RFMO that manages fisheries in the area where Sri Lankan fishing vessels fish. Sri Lanka has also ratified CITES, Convention on Biodiversity and MARPOL which, although do not directly concern fisheries, has a bearing on fisheries. MFARD has recommended that Sri Lanka should ratify the FAO Compliance Agreement, and FAO Agreement on Port State Measures to Control IUU Fishing activities. In management of fisheries, relevant provisions of the FAO Code of Conduct for Responsible Fisheries and International Plans of Action on IUU Fishing, Fishing Capacity and Shark Fisheries will be given effect to. Sri Lanka is also cooperating with India through the Joint Working Group appointed by the two countries to address fisheries issues that are common to both

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countries.

4.8. Investment

The government investment plan for the Roadmap is given in Table 20. The Government investment will be in the areas of development of the fishing fleet in the form of subsidies where the major part of the investment is expected from the private sector, infrastructure development and maintenance, fisheries management, inland fisheries and aquaculture development, fish quality improvement, and fisher community social security improvement. The private sector including banks are expected to invest in commercial activities such as fishing, boatyards, fishing gear factories, fish processing plants, aquaculture projects, ice plants, etc.

Table 20 – Government Investment Plan 2013 - 2016

Investment Area Activity Area Government Investment (LKR million)

2013 2014 2015 2016Marine fisheries Fishing fleet development 50 54 56 60

Fisheries management 60 60 60 60Establishment of new fishery harbours/Upgrading of anchorages to harbours

2400 2000 2200 2600

Upgrading of minor fish landing sites to anchorages

600 600 600 600

Maintenance of fishery harbours, anchorages and landing sites

100 100 100 100

Establishment of a VMS system 1000 5 5 5Inland fisheries and aquaculture

Introduction of reservoir craft 6 6 6 6Aquaculture seed production 30 40 50 60Establishment of new aquaculture centres or hatcheries (No.)

50 50 100 100

Fish quality improvement and export development

Improvement of quality related infrastructure at fishery harbours and anchorages

10 12 15 15

Development of awareness 5 5 5 5Certification (MSC, organic, etc,) of export projects

20 20 20 20

Improvement of social security of the fisher community

Fisheries pension scheme 50 60 70 80Fisheries insurance scheme 8 9 10 12Divineguma micro-credit scheme 30 40 50 60

Total 4419 3061 3347 3783

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