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Increasing Fish Production in Sri Lanka

MANILA, PHILIPPINES (10 September 2002) - Aquatic resources in Sri Lanka will be developed and thereby increase inland fisheries and aquaculture production through a US$20 million loan approved today by the Asian Development Bank (ADB).

The project will enhance food security and reduce poverty, especially in the rural areas, by developing model aquaculture and fish processing enterprises that can be easily replicated by community-based organizations and by private entrepreneurs in other parts of the country. It will have five parts: inland fisheries and aquaculture development, fish quality improvement and marketing, facilitation of access to credit, institutional strengthening, and project management.

The project will increase production of freshwater fish and other aquatic products; improve the quality and increase consumption of inland fish; improve access to credit; and strengthen the capacity of the National Aquaculture Development Authority and other sector institutions. It will promote investments by small- and medium-scale private entrepreneurs and strengthen community-based fisheries management.

It will be initially implemented in nine districts in six provinces primarily in the dry zone: (i) Anuradhapura and Polonnaruwa in North Central Province, (ii) Kurunegala and Puttalam in Northwestern Province, (iii) Nuwara Eliya in Central Province, (iv) Ratnapura in Sabaragamuwa Province, (v) Badulla and Moneragala in Uva Province, and (vi) Hambantota in Southern Province. Sites have also been identified in other districts, including Amparai, Batticaloa and Vavuniya in the north and east, which can be developed when the situation permits.

Fish are the principal source of protein for Sri Lanka's population, and play a vital role in meeting basic nutritional and livelihood needs. The production potential of the freshwater and brackish water resources has not been optimally utilized as only 12 percent of the country's fish production comes from inland fisheries and aquaculture.

"Given the support to develop inland fisheries and aquaculture production and marketing, both community-based groups and the private sector will have a keen interest to invest here because of the growing demand," says Snimer Sahni, ADB Financial Specialist.

The total cost of the project is US$ 30 million. ADB will provide: (i) US$13.8 million from its Special Funds resources, with a maturity of 32 years, including a grace period of 8 years, and an interest charge of one percent during the grace period and 1.5 percent thereafter, to be paid semiannually; and (ii) US$6.2 million from its ordinary capital resources under ADB's LIBOR-based lending facility. The balance will come from the government, community-based organizations, the private sector and the National Development Trust Fund. The Ministry of Fisheries and Ocean Resources will be the executing agency while the National Aquaculture Development Authority is the main implementing agency.

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