High duty imposed on fuel purchases for fishing vessels has today become the cause of the collapse of a local and foreign fishing export industry causing an alarming situation that will adversely impact on revenues. According to officials at the Ceylon Fisheries Corporation the government is attempting to reduce the costs and other service charges imposed on these foreign vessels.
It is learnt that the Fisheries Ministry is attempting to submit a cabinet paper in this respect to obtain approval to provide the fishing vessels particularly those registered as BOI ventures in Sri Lanka to be provided concessions in order to continue their operations in the country. However, vessels calling at the Dikkowita harbour at Wattala are generating increased revenues to the country as most of them that are foreign and obtain fuel from Sri Lanka.
Each fishing trawler is said to require at least 50 MT of fuel every two months in a bid to carry out their operations to catch fish 70 per cent of which is exported in the international markets. One of the vessels operating here spoke with the Business Times on Thursday with Horizon Harvest GM Retired Commander Malith Lasantha Wijesinghe saying their parent company wants to leave Sri Lanka and head to Malaysia. He noted that up until 2020 they continued to receive duty concessions as a BOI venture for fuel and baits but suddenly they were informed that the duty free fuel facilities have been stopped.
Since then they as an industry have been having meetings with Fisheries Minister Douglas Devananda, Customs and the Department of Fisheries, but to no avail. Moreover, he pointed out that previously they were operating about nine vessels and now only operate four vessels as a result of which the rest are being charged for berthing as well amounting to US$30 per day.
Authorities state that these concessions are likely to be granted to ensure that they pay only for vessels that are in operation. The rest of the vessels, they are unable to operate due to a lack of spare parts as well. Ceylon Fresh Seafood Managing Director Prasad Gunathilaka told the Business Times that their operation of five large 25 metre length vessels have now reduced the number of voyages by 50 per cent they carry out due to the high fuel cost due to the duties imposed. This has also led to a drop in exports as well.
Import restrictions on fish from other countries for re-export with value addition is also not helping their industry as they are compelled to export only the fish made available in these waters. “If the situation is not feasible then we will have to move this operation to other countries or sell the vessels to other countries,” Mr. Gunathilaka explained adding that they will only have time for another six months. Fisheries Ministry officials point out that they have been in constant touch with the relevant industry persons and are dealing with the issues. But with no spare parts, high fuel costs and high cost of baits an entire industry is impacted that is gradually eating into the revenues of the country’s crucial fish exports.