Thursday, February 2, 2017

Sri Lanka yet to reap benefits from EU fish ban lift

President Maithripala Sirisena, Minister Rishad Bathiudeen, former CWE Chairman Kiran Attapattu examining locally canned fish cans at a Sathosa outlet.

 Though the European Commission (EC) fish ban imposed on Sri Lanka in 2015 was lifted last year by the EU, Sri Lanka has not yet reaped benefits from it.

Sri Lanka Canned Fish Producer’s Association President, Shiran Fernando said they still have to pay a duty component of 16.5% for fish exports. “First we salute the lifting of the fish ban and thank the Sri Lankan government and the EU which has made exports possible after two years.”

“However the real time benefits can come only when the GSP Plus is fully implemented as it is only then that the 16.5% duty will be taken off.”

 CEO and Director TESS Group  Shiran Fernando

Fernando said today Sri Lanka has lost its market advantage due to the two year ban. “Countries like Maldives have taken our place and even the customers have got used to their products. Hence we now have now to reposition Sri Lanka’s fish in the international market which is a tall order.”

He said that during the EU fish ban Sri Lanka fish exporters faced tremendous hardships and several companies retrenched their staff as margins fell by big numbers.

Fernando who is also the CEO and Director of TESS Group of Companies exports fish for the past 35 years said that it is very sad that Sri Lanka being an island and having one of the biggest sea areas (517,000 square kilometers) which is bigger than the world’s largest fish producing country, Thailand’s fishing area) is still importing fish at an annual expense of Rs. 9,6 billion mainly from China in canned form.

He said the irony is that Sri Lanka is not reaping full benefits from the sea and he said that fish are ‘dying of old age’ in the East with no takers. “This is one of the main reasons for fishermen from other countries to fish in Lankan waters.” 

He said fishing is the only industry that had a readymade market in Sri Lanka everyday and no one should have second thoughts to invest in it.

Fernando said the government recently at a special appointed committee comprising Ministers, Mahinda Amaraweera, Rajitha Senaratne, Ravi Karunanayake, Rishard Bathiudeen and Dr. Sarath Amunugama came up with the idea to offer an incentive payment of Rs. 25 for each Mackerel can sold at Lanka Sathosa during the time when Kiran Attaputtu was its Chairman. “This was very good step as it saved the four Sri Lankan producers.”

He said that Sri Lanka is the largest importer of canned fish from China which is being sold in super markets at low prices. “Due to this move we are now able to match their price.”

He also said that the government must now request government institutions like the Armed Forces, and hospitals to buy local products to encourage and safeguard local producers.”

He said that given this kind of encouragement, Sri Lanka can be not only be self sufficient in fish but be one of the biggest fish exporters in the world.

“This will help the fishing industry to be the biggest foreign exchange earner to Sri Lanka.” 

 

 

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