The Canned Fish Manufacturers Association of Sri Lanka at a press briefing held in Colombo last week, called for immediate government intervention to prevent the local industry from collapsing.
President, Canned Fish Manufacturers Association of Sri Lanka, Shiran Fernando, urged the government to act swiftly to remedy their woes by implementing the following minimum requirements of re-introducing the import tax on foreign canned fish to previous levels of Rs102 and re-introducing the Rs 20 concession per tin offered by the Sathosa, limiting imports of foreign canned fish, purchasing local canned fish for government institutions, armed forces, soon, to prevent an imminent collapse of the industry which would have an immediate bearing on the livelihood of nearly a million people who depend on the industry. Fernando said already one local canned fish factory has closed down and many more will have to follow suit soon if quick remedial measure were not taken by the government. He said Lankan canned fish manufacturers use 100% local fish local cans and labels printed by local printers. There by the the value addition is 100%. He said they can provide 75% of Sri Lankan consumption which is approximately 175,000 cans per day.
He said local canned fish industry is capable of supplying the total requirements of the country, if the government fulfills their requirements and even look at the export market to become not only a foreign exchange saving industry, but a foreign exchange earning industry as well.
The local canned fish industry saves the country US $ 64 million, by engaging in production annually.
Fernando said that due to the import process being eased on foreign canned fish, and local importers are allowed to import on an adhoc basis with no control from the Ministry of Fisheries there has been an influx of canned fish from overseas in the past few months and these have been dumped in the market for low prices. As a result, local fish producers are unable to compete with these imported canned fish. He said they had purchased over Rs 600 million worth fish from local fishermen which would normally have been spent on imported canned fish. He said there was no control on payment for the import of canned fish; hence importers import containers on DA terms and after a few weeks in order to collect money sell them below cost. Fernando therefore requested the government to also impose the restrictions as done for payments on car imports on payments for items imported which can be manufactured locally. ( MFJ)
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