“Lanka’s marine economy needs to upscale from 10% contribution to GDP”

Despite being an island nation Sri Lanka’s marine economy currently contributes a less than 10% of Sri Lanka’s GDP of about US$ 84 billion said Vice Admiral Anil Kumar Chawla, a retired Indian Navy officer, who served as Flag Officer Commanding-in-Chief Southern Naval Command in India at the Marine Conference, “Voyage Sri Lanka” in Kingsbury Colombo yesterday.

Sri Lanka has been a maritime country since its ancient past and he said that this figure is grossly insufficient for an island nation. Sri Lanka’s marine economy, especially its logistics sector is a vital component of its overall economy, with logistics services contributing to 2.5% of its GDP.

Sri Lanka’s maritime boat exports industry currently contributes 1.4% towards the national GDP. The fisheries sector is also significant and contributes 1.4% of Sri Lanka’s GDP. The tourism sector, which contributes towards 8% of Sri Lanka’s GDP also has a significant marine component. Today Colombo handles 70% of all maritime traffic (and nearly 70% of India’s transhipment cargo), with Hambantota, Galle and Trincomalee ports handling the rest.

“However contribution from all these factors is still inadequate and urgent steps should be taken to increase them.”

Providing services for maritime trade could be a major driver in Sri Lanka’s economic development, he suggested. Colombo Port is already one of the busiest trans-shipment ports in the world and there is significant potential for further development in port and related services, including ship maintenance and repair, logistics, bunkering and other services.

“In this regard, Hambantota port holds significant potential. As this industry develops, these services come with associated threats relating to maritime safety, port security and environmental risks.”

The development of an indigenous ship-building industry is also something that needs to be envisioned, especially as Sri Lanka already has a world class boat building industry. Sri Lanka is heavily dependent on fisheries for food, economic benefits and employment. More can be done in developing Sri Lanka’s potential in the fisheries sector, including better protecting resources, as well as in improving the management and productivity of Sri Lanka’s fishing fleet. The maritime domain is likely to become a significant source of renewable energy for Sri Lanka, including through offshore wind and wave generation, and, potentially, offshore oil and gas.

(However later speakers said that surveys, studies and approvals of large scale investments have delayed the progress and it will take at least five more years before even EOI could be called.)He identified the marine-based tourism industry as another area to further develop.

Minister of Trade and commerce Food security and Cooperative development, Wasantha Samarasinghe said that the new government would look at the Maritime sector development in a more organized manner to reap more economic benefits to the country.

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