$300mn Saudi Investment in Sri Lanka's Ceylon Fisheries Corporation to Increase Production and Streamline Sales of Fishing Industry

05th February 2012, english.nuqudy.com

The Dikkowita fishery in Sri Lanka has recently announced that a Saudi Arabian company will be investing around $300 million into the Ceylon Fisheries Corporation (CFC), which is organizing a project to streamline the fish market on behalf of the Sri Lankan Department of Fisheries.

The Saudi Arabian investment will make it possible for the CFC to buy fish from fishermen and sell them directly, eliminating the need for a middleman.  According to Dr. Rajitha Senaratne, Minister of Fisheries and Aquatic Resources Development, the investment means the CFC could “. . . directly intervene in the market. We will be able to set up a good network to increase production and sales throughout the country.  We can spread our wings through the CFC and the Cooperative City. These facilities will enable us to decide the price of fish.”

While a memorandum of understanding has not yet been signed, a company spokesperson will be visiting Sri Lanka this week to finalize the investment arrangements.

Saudi Arabian investors have a history of involving themselves in fishing operations.  For example in 2008, the Saudi-based National Prawn Company invested $300 million in beginning large-scale fish production in the Gulf.  Additionally, Saudi Arabia, with around 7,570 km of coastline, is in a prime geographical location to be involved in the fishing industry.

Saudi Arabia has produced approximately 40,000 tons of fish annually since 1985 through a combination of fish farming and artisanal, or low-tech, fishing.  Although production remains fairly constant, the location has fluctuated between the Red Sea and the Arab Gulf.  The number of fishing vessels and fishermen in Saudi Arabia has grown nearly five-fold in the past 20 years.

Sri Lanka’s economy has flourished in recent years and has been hailed as the most liberalized economy in South Asia.  The GDP grew 8.3% in 2011 according to the Central Bank of Sri Lanka, and the IMF estimates that the economy is worth over $56 billion.  Transparent investment laws have attracted an increase in foreign direct investment.  Human capital is also an asset, as Sri Lanka has a 94.2% literacy rate, and the workforce is highly trained in high tech production and services.

As for the fishing industry, the government expects 9.8% growth in 2012 due to auspicious weather conditions and an enhancement in marketing and infrastructure facilities.  Fishing is an important part of Sri Lanka’s economy, particularly exports, and tensions have been rising between Sri Lankan and Indian fisherman encroaching on each other’s waters.

Indian Ocean Tuna Commission Session in Colombo to Addres Fisheries Concerns. Fisheries Sector Contribution to Sri Lanka's Economic Growth Highlighted

19th March 2011, www.dailynews.lk

The fisheries sector is Sri Lanka’s third most important contributor to economic growth. It is second only to agriculture and tourism, Fisheries and Aquatic Resources Development Minister Rajitha Senaratne said.

“From time immemorial, we in the Indian Ocean region have treated our marine resources with respect, taking what we need and not more, from the vast sea areas we are endowed with,” he said.

“Things changed with population growth, industrialization, technological developments and the market economies’ growth. Technological developments in fishing in the 1960s and 1970s gave rise to killing machines able to hunt fish with much speed and efficiency in any ocean. It helped to take 1,000 tons in one fishing trip,” he added.

Minister Senaratne was addressing the inauguration ceremony of the Indian Ocean Tuna Commission (IOTC)’s15th session held under Economic Development Minister Basil Rajapaksa’s patronage at the Galle Face Hotel yesterday.

“We are a nation in a hurry. The country has lost years of development and billions of dollars as a result of three decades of terrorism,” he said.

“Our population is trying to rise as one nation putting aside petty differences. Under the leadership of President Mahinda Rajapaksa and his vision articulated in the Mahinda Chintana Idiri Dakma, the whole country is making steady progress,” the Minister said. The daily per capita fish consumption in Sri Lanka is only 31 grams. It should increase to 60 grams by 2013.

“Therefore there is a main need to increase catching capacity to make available greater fish volume as a source of protein,” Senaratne said.

”We now have only 400,000 tons of fish production. To achieve the above targets we have to increase Sri Lankan fish production to 686,000 metric tons by 2013. Sri Lanka has worked closely with IOTC and we wish to work closely with IOTC family of nations towards realizing our goals as well,” he added.

Sri Lanka has many problems to overcome. The government is doing all what it can to do to solve those problems and redevelop remote areas through improving infrastructure, reestablishing the agriculture and fisheries sectors, the Minister noted.

“IOTC is taking place against the backdrop of a series of international and regional fisheries concerns. We should work as a team to address the issues facing the Indian Ocean stocks. All members of this commission should take responsibility,” said IOTC Chairperson Rando Paiyet.

He noted that we may not be able to change what others have done, but we can change ourselves.

IOTC has to play a huge role in management of region’s tuna stocks and should be given equal attention to international and regional sectors.

In fact both sectors approximately harvest 50 percent of the tuna resources, he said.

“There is a difficult task ahead of us. Let us not loose this opportunity to make a difference in future of our children in working together as one team despite our differences,” he said.

External Affairs Minister Prof G L Peiris, Fisheries and Aquatic Resources Development Ministry Secretary Dr Damitha de Soysa and IOTC Executive Secretary Alejandro Anganuzzui also participated.

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Sri Lanka Good for Investments in Rubber-based Industries, IT, BPO and Auto Components

24th December 2009, www.thehindubusinessline.com

Indian investors could look at their neighbour Sri Lanka for investments in a wide range of sectors, including agriculture, dairy, fisheries and manufacturing sectors, according to Mr Vadivel Krishnamoorthy, Deputy High Commissioner of Sri Lanka.

After nearly three decades of strife, peace has come to Sri Lanka which is now looking to fully exploit the benefits of a liberalised economy Mr Krishnamoorthy said. Sri Lanka was among the earliest in South Asia to open up its economy in the 1970s. It now has a lot of catching up to do. The North and the East offer major investment potential in agriculture, construction and infrastructure.

Thrust areas

Sri Lanka offers scope for investments in other areas, including in rubber-based industries, IT, BPO and auto components – Indian automobiles are “everywhere” in Sri Lanka, he said.

Addressing a meeting organised by the Sindhi Chamber of Commerce, he said the Sri Lankan Government has created a favourable environment for investments including tax holidays which can extend up to 15 years for investments in North and East.

The time is ripe now for India and Sri Lanka to fully take advantage of the decade-old free trade agreement which covers over 4,000 products. Both countries should work together to finalise the comprehensive economic partnership agreement to extend trade relations, he said.