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.

ABBREVIATIONS

CFC – Ceylon Fisheries Corporation

CFHC – Ceylon Fishery Harbours Corporation

CITES – Convention on the Trade in Endangered Species

CNFL – Cey-Nor Foundation Ltd

DFAR – Department of Fisheries and Aquatic Resources

FAO – Food and Agriculture Organization of the United Nations

IOTC – Indian Ocean Tuna Commission

IUU (Fishing) – Illegal, Unreported and Unregulated (Fishing)

MFARD – Ministry of Fisheries and Aquatic Resources Development

NAQDA – National Aquaculture Development Authority of Sri Lanka

NARA – National Aquatic Resources Research & Development Agency

NIFNE - National Institute of Fisheries and Nautical Engineering

RFMO – Regional Fishery Management Organization

CONTENTS

1.  THE FISHERIES SECTOR: AN OVERVIEW

1.1. Contribution to the National Economy

1.2. Resource Base

1.3. 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 FSDS

2.2. Outputs and Outcomes

2.2.1. Marine Fisheries

2.2.1.1. Production Targets

2.2.1.2. Interventions

2.2.2. Inland Fisheries & Aquaculture

2.2.2.1. Production Targets

2.2.2.2. Interventions

2.2.3. Midterm Progress of Achievements of National Fish Production Targets

2.2.4. Fish Marketing

2.2.5. Export Fisheries & Aquaculture

2.2.5.1. Production Systems

2.2.5.2. Midterm Progress

2.2.6. Fishing Community

2.2.6.1. Enhancement of Socio-Economic Status

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

3.1. Budgetary Allocations

3.2. Marine Fisheries

3.3. Inland Fisheries & Aquaculture

3.4. Research

3.5. Fish Marketing

3.6. Fish Exports

4.  ROADMAP 2013 – 2016

4.1. Policy Directions

4.2. Specific Objectives and Targets

4.3. Major Issues and Constraints

4.4. Strategies for Achievement of Objectives

4.5. Research

4.6. Implementation

4.7. International Cooperation

4.8. Investment

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.

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.

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 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, Peliyagoda

Established 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.


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 Proposed
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. / 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.
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