“We are the ones who bring dollars into the country and we are also the ones who suffer” – Aqua Ceylon International (Pvt) Ltd. Chairman/CEO Chamini Dinusha Kasthuri
Similar to Sri Lanka’s standing in terms of apparel, tea, and coconut exports and others, the country is acknowledged globally for supplying high-quality ornamental fish to over 125 countries. This recognition stems from its position in international markets, where it is regarded as a reputable supplier.
A recent report shows that in 2022, the export value of ornamental fish reached Rs. 7,143 million. The market for these fish was valued at $ 6.8 billion in 2019 and it is estimated to grow significantly, reaching around $ 11.3 billion by 2025. This growth represents a strong Compound Annual Growth Rate (CAGR) of over 10% until that time.
Although Sri Lanka’s ornamental fish exports are currently limited in quantity and value compared to its total exports, there’s enormous untapped potential in this sector. This potential is due to the country’s rich diversity of 111 ornamental fish species thriving in various aquatic environments, including freshwater, brackish, and marine habitats.
The nation’s advantageous climate and an assortment of water formations, including coral reefs, sand bars, lagoons, streams, rivers, and reservoirs, offer an ideal breeding ground for a diverse array of marine, brackish, and freshwater species. These environmental factors collectively create optimal conditions for the successful cultivation and proliferation of these aquatic species, contributing to Sri Lanka’s flourishing export market in ornamental fish.
Since its establishment, the Sri Lanka Tropical Fish Exporters’ Association (SLTFEA) has maintained close collaboration with essential stakeholders, including breeders, growers, suppliers, and diverse Governmental and non-Governmental entities, to ensure the protection of the industry. This concerted effort has significantly contributed to the growth and expansion of Sri Lanka’s ornamental fish sector, a vital source of livelihood for numerous individuals, particularly those residing in rural regions.
With robust backing from entities such as the Export Development Board (EDB), the National Aquaculture Development Authority (NAQDA), the National Aquatic Resources Research and Development Agency (NARA), the Department of Fisheries, and the Department of Animal Production and Health (DAPH), the industry has witnessed consistent growth across recent decades.
During the recent convening of the EDB Advisory Committee, ornamental fish exporters actively addressed the challenges and advocated for necessary reforms within their industry. They extensively presented the array of issues they encountered, offering insights into the reforms needed for the committee’s consideration.
According to the reports derived from the meeting, the discussion encompassed several crucial points. The exporters voiced concerns about competitive freight rates prevailing in other countries, significant reforms in import bans, importation conditions, and more.
Challenges with airline exports
Speaking to The Sunday Morning Business, EDB Chairman Dr. Kingsley Bernard pinpointed the primary issue within the industry: “These are live exports, hence necessitating prompt actions. Consequently, certain delays have occurred in the export process.”
Dr. Bernard stated that they had engaged with the pertinent Government organisations and were implementing corrective measures to address the concerns highlighted by ornamental fish exporters.
Aqua Ceylon International (Pvt) Ltd. Chairman/CEO Chamini Dinusha Kasthuri told The Sunday Morning Business that there were significant challenges with airline exports, such as frequent changes in prices, lacking consistency in terms of air freight rates, and irregular flight destinations.
“At times, finding flights to certain places becomes difficult. We primarily use airlines like Emirates, Qatar, and Turkish for fish shipments, but some carriers impose restrictions, refusing to accept fish cargo. At the airport, temperature control issues persist, and cargo needs to be submitted five hours before flights without adequate storage conditions,” she explained.
“The EDB holds a pivotal role in supporting exporters and as exporters contributing to the country’s revenue, we endure significant challenges,” she stressed.
“The EDB should take greater responsibility for these issues. While everyone talks about increasing revenue, there’s a lack of support for our business from the Government or any other entity. There’s considerable untapped potential for the EDB to enhance its current efforts,” she disclosed.
Visa issues
Lumbini Aquaria International (Pvt) Ltd. Chairman Vibhu Perera told The Sunday Morning Business that they were unable to obtain visas to travel to Europe. He also noted that in 2022, they had suffered a loss of Rs. 10 million after booking a booth for a show in Germany, along with paying for the hotels.
“I have travelled to Europe 15 times in the past 25 years without any issues. However, unfortunately, I couldn’t get my visa this time to travel to Germany. Consequently, we couldn’t participate in the exhibition there in 2022. Presently, we’ve booked stalls for 2024, and I hope and pray that we will be granted visas to Europe,” Perera said.
A majority of exporters find themselves unable to travel to Europe, leading to a considerable decline in market presence within the region. Despite the active participation of our competitors at the show, Sri Lanka, unfortunately, has been unable to engage fully.
Highlighting the significance of resolving this matter, efforts are underway to bring this issue to the attention of the President. This action has been prompted by the Export Development Board’s acknowledgement of its inability to petition the embassy for visa requests. The resulting impact has affected individuals who have long been travelling to Europe, thereby being confronted with substantial financial losses.
Necessity for effective management
Perera further noted that the ornamental fish industry held potential and was on an upward trajectory, with people actively breeding fish, both on large and small scales.
However, he expressed concern regarding the necessity of effective management. He highlighted the risk of a major disease outbreak devastating the entire ornamental fish industry, drawing parallels to what had occurred in the prawn industry. He suggested that management responsibilities should be overseen by NARA or NAQDA.
Firstly, the suggested approach involves conducting workshops across all districts to educate individuals involved in the business, identified as the primary action to be taken.
Moreover, over the last 15 years, there has been consistent advocacy for establishing a comprehensive database, which would facilitate interactions between exporters and suppliers (the breeders) for procuring ornamental fish. However, despite the advocacy, this initiative remains unimplemented.
As a result, the private sector has taken the lead by forming independent groups. Encouragingly, these groups now encompass a significant number of suppliers/breeders and participating as exporters in these groups provides consistent access to their requirements.
“I have been advocating for this for the past 15-20 years, but regrettably, the Government departments have been unable to implement it. Ultimately, it was the private sector that took the necessary steps,” Perera disclosed.
“Still, the Government has certain roles to play in managing the industry, although not necessarily in regulating it. Management includes providing advice and controlling diseases – these aspects should be overseen by Government departments. At the very least, the Government should educate people who are starting businesses in this industry.
“I am happy that the industry has developed around the country, except in the north and east,” Perera concluded.
State financial assistance inadequate
All Island Fishermen’s Association (AIFA) National Convenor Rathna Gamage noted that the available figures were based on the reports on the imports and exports of fish over the years in Sri Lanka.
“In 2000, fish imports to Sri Lanka amounted to Rs. 10,328 million, while in 2021, this figure surged to Rs. 63,222 million. Conversely, fish exports from Sri Lanka amounted to Rs. 5,132 million in 2000, experiencing a substantial increase to reach Rs. 25,080 million by 2021,” Gamage noted.
The report observes that the Government has allocated only 0.1% of its total expenses towards fish production and its associated industry. This allocation is seen as a significant issue, as it doesn’t provide adequate financial assistance for the industry’s survival.
Gamage observed that despite the industry’s potential and its crucial role in supporting the country’s economy, its collapse had resulted in economic hardship for those involved, consequently bringing the industry to a halt.
Despite attempts by The Sunday Morning Business, Minister of Fisheries Douglas Devananda was unavailable for comment regarding the ornamental fish exporting issue.