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Fisheries State Minister discusses lowering cargo charges

30 May 2021

By Karen Hapuarachchi  The State Ministry of Ornamental Fish, Inland Fish and Prawn Farming, Fishery Harbour Development, Multi Day Fishing Activities and Fish Exports informed that the discussions with SriLankan Airlines to lower the increased cargo charges influenced by airport restrictions, are still ongoing.  Speaking to The Sunday Morning Business, State Ministry of Ornamental Fish, Inland Fish and Prawn Farming, Fishery Harbour Development, Multi Day Fishing Activities and Fish Exports Secretary Jayantha Chandrasoma informed of discussions between the ministry and SriLankan Airlines.  “As far as I know, the State Minister Kanchana Wijesekera met the relevant authorities of SriLankan, although, I cannot confirm if there has been progress recently,” Chandrasoma stated.  Chandrasoma further added that the frequency of cargo flights has increased along with the exporting continuing. He clarified that the restrictions of airports are not applicable for travel of cargo.  “In fact, the restrictions are only for tourist arrivals, and generally, due to the Covid-19 pandemic, the crate prices are high. However, I did not receive any complaints during the new wave about a price hike on cargo costs, as of yet,” added Chandrasoma.  It was also highlighted that impacts of the Covid-19 pandemic can be seen to a certain extent from the countries that buy fish exports from Sri Lanka. Accordingly, most restaurants in the European Union from this region have closed down due to the effects of the pandemic in their countries.  Nevertheless, the ornamental fish sector had informed the State Ministry that the demand for ornamental fish has increased. However, it was stated that the exporters are finding it difficult to supply this demand.  “This is because the demand increases, but our farmers and our fishermen are not ready to supply. Also, it should be noted that the production of ornamental fish and seafood is not affected to a great extent by current travel restrictions,” stated Chandrasoma.  It was also revealed that the State Ministry and the organisations related to the State Ministry and Fisheries Ministry have issued permits for its workers to travel to work.  In a previous interview with State Minister Kanchana Wijesekera, it was stated that the effects of the Covid-19 pandemic are reflected in countries that have a great demand for Sri Lankan seafood and fish exports.  “Due to the global pandemic, Europe has been under lockdown for most of last year. This resulted in the demand for Sri Lankan fish exports decreasing from the foreign consumer base and European restaurants in 2020,” Wijesekera added.  He went on to mention that a decrease in production and increase in trade costs in relation to the airport restrictions last year resulted in a decrease in export value as well. The State Ministry, at the time, was negotiating a lower trade cost in order to resolve this issue with SriLankan Airlines.  The airport restrictions were reported to have led to a decrease in export revenue with regard to increased costs.  As of March 2021, $ 75.5 million was generated through the export of seafood. This was followed by the $ 189.8 million in 2020 amidst the introduction of the pandemic and $ 262.4 million in 2019, prior to the pandemic, according to statistics from the Export Development Board.  Wijesekera also explained in January that due to the first and second clusters of the global pandemic, in Sri Lanka, especially with regard to the Peliyagoda cluster that occurred last year, most of the fishermen and their associates were quarantined.  “We have made plans for productions for about 450,000 metric tonnes per year which is coming from ocean resources. We import about 90,000 metric tonnes annually and we also import canned fish and dry fish for another 70,000. So our requirement is about 650,000 metric tonnes,” stated Wijesekera.  Nevertheless, substitutes for imports were identified. The State Minister noted that the 90,000 metric tonnes of dry fish and food fish that are being imported, and the imports were substituted by the inland fisheries sections of dry fish and also food fish.  The canning requirement was estimated to be 250,000 cans per day, and the country’s capacity in the local market was 30,000 worth of local production previously. However, it was revealed that the capacity has increased to 200,000 in canning from the requirement.  It was further mentioned that the target is to achieve the 250,000 cans per day. Wijesekera also mentioned an investment in swan farming that is going to be involved in the export production targets.  Additionally, Wijesekera highlighted the increased taxes on imports and the tax rate for local producers with regard to the five-year tax rate for the fisheries sector that the Government recently announced. This was followed by the Ministry’s aim to replace 70% of foreign imports by local production even though there are some foreign fish imports that the local producers are unable to replace.


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