Recently, the Asian Development Bank (ADB) urged Sri Lanka to adopt a strategic and sustainable method for developing its blue economy, stressing the need for improving investment, regulation, and branding to fully utilise the country’s extensive maritime resources.
Meanwhile, Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando announced Sri Lanka’s plan to lead South Asia in the blue economy – through Blue Economy Vision 2030 – with plans to position the country as a top investment hub for ocean-based industries.
For the country to achieve this, industry experts urge the need for clearer regulatory frameworks, strong strategic planning, and significant infrastructure development moving forward.
Lack of infrastructure
The Port of Colombo is recognised for its strong connectivity. Officials state that the Colombo Port could handle 8.2 million Twenty-foot Equivalent Units (TEUs) in 2025. In 2024, the port recorded an all-time high container throughput of 7.78 million TEUs, a significant increase from the 6.91 million TEUs handled the previous year. The Sri Lanka Ports Authority (SLPA) has projected the port’s total capacity to double to 15 million TEUs by 2026.
Speaking to The Sunday Morning Business, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku noted that while Sri Lanka naturally had the potential to develop its blue economy, the infrastructure was yet to match this potential. He also noted that the industry had not saturated but continued growing in terms of volumes and demand, which the Government was trying to capture.
The Deputy Minister further noted that, in the current context, the blue economy should consider the combination of the maritime and aviation industries, given the evolving dynamics. Thus, he noted that the Government’s plan was to develop shipping lines, airlines, and infrastructure, including ports and airports, as they all needed to be developed simultaneously, along with the services.
“We are planning to enable the Colombo Port to move around at least 30 million TEUs by 2035 and there is a 10-year plan for the shipping industry. There will also be a few terminals coming up. Currently, the Colombo Port has a capacity of around 8 million TEUs, cargo-wise. However, apart from that, we are not supplying other services to become a maritime hub,” Kodithuwakku said.
Moreover, he stated that while Sri Lanka already had a National Shipping Carrier, Ceylon Shipping Corporation Ltd., it was not in a financially viable position and the Government was exploring options to develop it.
On developing Sri Lankan branding, the Deputy Minister noted that the country was already branded to an extent, especially the Colombo Port. Certain areas that drive this branding are Sri Lanka’s efficiency and human resources, such as seafarers. However, he acknowledged that in terms of infrastructure, Sri Lanka was not branded adequately, since despite ships needing to come to Colombo, the country could not cater to all their needs.
Under both maritime and aviation sectors, there are two main international organisations: the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO).
“I will be visiting the upcoming IMO conference in the UK, and we have identified a person to be appointed as an ambassador for Sri Lanka at the IMO, which is another step that will drive branding,” he added.
In terms of strengthening the regulatory framework, he noted that the President was already working towards improving the investment process and climate in the country. Thus, he said that there would certainly be improvement in the process in time to come.
Branding SL as a logistics hub
SLPA Chairman Admiral (Retd) Sirimevan Ranasinghe stated that Sri Lanka lacked a few essentials in developing the blue economy and branding.
He noted that while Sri Lanka had a substantial number of advantages in terms of its strategic location, the country was yet to fully realise the potential or fully utilise that connectivity in achieving logistic developments, for which it had great untapped potential.
Ranasinghe further noted that plans for developing this aspect, which started in 2023, had not materialised yet, adding that the country was currently looking at re-tendering the available land for better optimisation.
“There have been many discussions around how and why Sri Lanka should start promoting the country as a logistics hub as well – in fact, far more than being a transshipment hub. This is the opportunity to do so, and the intention of the SLPA and the ministry involves promoting Colombo as a logistics hub beyond a transshipment hub,” he added.
Blue Economy Vision 2030
The Government’s Blue Economy Vision 2030 is a strategic framework designed to utilise the country’s extensive marine resources. It identifies five main sectors as priority areas for investment. These include sustainable fisheries and aquaculture, marine biotechnology and pharmaceuticals, port development and maritime logistics, marine tourism and recreation, and offshore and energy services.
Sustainable fisheries and aquaculture has specific aims to modernise fishing fleets, improve cold chain logistics, and introduce value-added seafood processing for export. The plan also targets marine biotechnology and pharmaceuticals, leveraging the country’s rich biodiversity for bio-based products and medical research ventures.
Port development and maritime logistics are also being focused on, through the expansion of the Colombo Port and the development of the Hambantota and Trincomalee Harbours, to establish the country as a regional centre for cargo handling, ship repair, and bunkering services.
Further, the vision also includes marine tourism and recreation, integrating experiences like sailing, diving, and eco-tourism into the tourism strategy, as well as marine and offshore services, which includes emerging opportunities for international investors in oil and gas exploration and energy hub development.
Implementing a strategic, sustainable project
Speaking to The Sunday Morning Business, Shippers’ Academy Founder and CEO Rohan Masakorala noted that while Sri Lanka’s blue economy had been a talking point for some time, there must be a commitment to implementing a sustainable blue economy project.
He observed several steps required as critical starting points, such as properly identifying a ministry that would take responsibility for and implement the blue economy under the Cabinet portfolio, along with the type of institutional network it would propose. He also highlighted the preliminary need to establish a structure, with the proper talent, know-how, and knowledge, to work towards the blue economy goals.
Masakorala also stated that given Sri Lanka’s location in the Indian Ocean and its designation as a hot spot, the blue economy should be considered a viable, futuristic opportunity that the country needed to seriously pursue, adding that simply engaging in discussions would not advance the country.
“A concrete plan, financing, Government budgetary allocations, Public-Private Partnerships (PPPs), and attracting international investors with proper plans are necessary. Branding cannot take place without first establishing a proper product, or even a proper website stating what the Sri Lankan blue economy is, with information such as who is responsible, relevant financial institutions, ocean-related institutional frameworks, etc. Formulating measurable, verifiable processes and planning to be adopted is the first step,” he added.
Furthermore, Masakorala emphasised the need for a strong regulatory framework to establish a blue economy, which required a significant amount of focus, knowledge, know-how, time, and resources. He further highlighted political will and commitment by the private sector, especially in developing an executable strategic plan, as essential.
He also noted that proper structuring was required, as well as a national-level coordinating office, especially when considering investments, so that opportunities and the legal framework were clear. If the regulatory environment is not correct, it cannot sustain an investment climate.
“Developing the regulatory framework with modern structures while ensuring environmental sustainability is important, and marine spatial plans, marine renewable energy, and environmental protection are key in this. Furthermore, adapting modern ocean technology and ensuring proper investments in this regard are also necessary.
“However, establishing fundamentals, commitment, and the right frameworks with leadership are essential. The potential is substantial if the investments are done properly at the right time,” he added.
Key areas for developing blue economy
Meanwhile, Chamber of Marine Industries of Sri Lanka (CMISL) Senior Adviser Gamini Herath explained the key areas in relation to developing the blue economy in the country.
“One key aspect of the blue economy is nautical/maritime tourism and a developed nautical tourism strategy is ready for implementation. It is necessary to establish the required institutional elements to implement it, especially given that a strategy of this nature requires the cooperation of several institutions, ministries, and private sector industries. This touches upon several significant areas in the country, including Trincomalee, Mannar, Kalpitiya, and Galle,” he added.
Regarding nautical tourism, Herath also pointed out that recreational boating, which currently remained largely insignificant, needed further infrastructure development and expansion for both local and foreign tourists.
The second most prominent area for Sri Lanka, according to Herath, is wreck diving, which currently takes place only on a limited scale. Sri Lanka has 143 suitable locations, which include one of the oldest aircraft carriers sunk during World War II off the coast of Batticaloa. Herath added that these could be marketed profitably with proper branding.
He also explained other marine services that the private sector had ventured into on a small scale, such as providing services like oil rig layups and other maintenance and repair facilities for maritime services companies around the world, especially in Trincomalee. Furthermore, he highlighted potential in Sri Lanka venturing into the exploration of oil, for which expediting the processes was necessary.
According to Herath, the next promising area under the blue economy is the fisheries industry, where aquaculture and mariculture represent a prominent economic area. However, Sri Lanka’s traditional fish harvesting methods are facing challenges.
He observed that in the coastal areas, there was hardly sufficient fish for economic purposes, and even in the mid and deep sea, the returns were not adequately high due to low harvests. Nevertheless, he noted that, at present, the development of aquaculture and mariculture had already begun.
“These are all sustainable, especially environmentally sustainable, activities. However, they require regulations and proper implementation/execution mechanisms, alongside certain revisions to protect the country’s marine ecosystem, which are essential for ocean-based economic activities.”
Herath also highlighted maritime transport and support services for the sector, pointing out the need for high-standard infrastructure for cruise tourism and a cruise terminal in order to boost overall tourism.
Furthermore, he pointed to other areas that could be developed, such as mineral exploration, ocean-based renewable energy, and building marinas.
“Sri Lanka also has a substantial opportunity in ship building, boat building, and ship repair. We currently have only one functioning shipyard, which faces certain issues that need to be fixed soon. There is capacity to earn at least $ 200 million per year if the full capacity of this shipyard is utilised.
“Moreover, Trincomalee in particular, with its lucrative ocean depth, has substantial potential in ship repair and deserves greater focus. Hence, regulation and infrastructure facilities need to be developed as required,” he added.
Herath pointed out that in the ship building/repair sector, which alone could generate around $ 500 million per year, businesses had to go through various regulatory authorities to receive approval.
Hence, he stated that the blue economy would not take off unless there were streamlined and simplified processes and improved access. While a one-stop shop had been advocated for years, the need for establishing one still remains, which he noted as essential for foreign investments.
“We foresaw substantial potential in the blue economy decades ago and proposals have always been made but did not properly materialise. It is now high time to leverage these opportunities.”
Meanwhile, speaking to The Sunday Morning Business, former Chairman of the Sri Lanka Shippers’ Council (SLSC) Sean Van Dort highlighted that the country would never benefit from a blue economy unless the prevailing protectionist laws regarding maritime and logistics were revoked.
“Liberalisation in logistics is a must to unlock its full potential, which is the stepping stone for any country to move forward. International law is constantly upgrading its standing and holding countries responsible. However, the lack of implementation from Sri Lanka is found wanting,” he added.