This chapter will present and discuss the aquaculture development strategy that the Mission proposes for Sri Lanka. The purpose of having a strategy is to ensure that the Government's efforts are focused on introducing, at a reasonable cost, economically self-sustaining aquaculture activities (or culture systems) that are socially relevant in the long run. The first step in formulating a strategic plan therefore is to select the most appropriate culture systems.
The social relevance of aquaculture activities depends upon the extent to which they satisfy the Government's long-range development objectives. Those are discussed in section 6.1. The culture systems which the Mission has identified as possible components of a strategic plan are described and appraised in section 6.2. In the following section 6.3, the Mission proceeds to rank the systems according to their long-term importance, and to select those which it thinks should be included in the strategic plan.
By establishing development objectives the Government attempts to ensure that social changes, achieved through economic activities, will be relevant in the long run. Summarizing the objectives of Government as a whole in terms applicable to fisheries they are:
In early 1980, the Government put priority on such activities that would involve the private sector and ensure rapid returns on capital invested.
The Mission considers the long-run economic viability of aquaculture activities to be very important and understands that the Ministry of Fisheries has the same view. Therefore, the social benefits of culture systems must be definite and considerable for the Ministry to give priority to a culture system which even in the long run is unlikely to become economically self-sustaining.
However, in order not to exclude activities which may be socially relevant although economically doubtful, the Mission, while appraising culture systems for inclusion in the strategic plan have included also some of those which appear economically questionable. The following culture systems have been considered:
The Mission has appraised the selected systems with regard to the following characteristics:
results as expressed by yearly harvests in 1985 and 1990 and by the culture system's contribution to Government's development objectives when systems are self-sustaining (see Table 4);
nature and quantity of inputs which Government need to provide in order to render the culture systems viable and self-sustaining (see Table 5);
the risk that each system runs of not developing as foreseen (see Table 6).
Although, at first glance the information provided in the three tables (4, 5 and 6) may appear arbitrary, this is not really so. For each of the culture systems to reach the physical targets specified in columns three, four and five of Table 4, a certain minimum effort is required; that is, the effort quantified in the columns of Table 51. Also, as aquaculture deals with living organisms, which have a life rhythm of their own, this imposes a certain minimum time-frame for production cycles: development time cannot necessarily be reduced by use of more funds, staff or equipment, even if it were accepted that costs can be allowed to rise very high in relation to results achieved. The information given in Table 6 on risk reflects the experiences elsewhere.
The culture systems will now be reviewed individually. The review is based on Tables 4, 5 and 6. As the economic aspects of individual culture activities (and in some instances systems) have been reviewed in Chapter 5, only a few comments will be made on that subject here.
(i) Culture of fish in seasonal tanks
The outstanding features of the culture of fish in seasonal tanks are two: first it is capable of providing considerable quantities of fish where it is most needed (in rural areas of the dry zone), and, second, it is efficient as far as use of manpower is concerned. The main reasons are that the culture is extensive and makes use of already existing water bodies. It means, however, that the culture does not generate much employment relative to the quantity of fish produced. Nevertheless, a large number of persons eventually may find part of their livelihood being derived from this activity.
While considerable Government inputs are required, particularly of extension staff and aquaculturists, the risks of failure seem small, that is, if a Government project of appropriate nature and scale is launched (see Annex 16).
(ii) Pond culture of fresh water fish
The use of Government resources for development would be relatively limited. The comparatively long development and demonstration phase is due to the present doubtful economic viability of the more obvious possibilities. The risks associated with commercial (or subsistence) pond culture of fresh water fish are low.
While many rural people could receive economic benefits from pond culture of fresh water fish, the employment provided is relatively small and so is the expected output of fish. The limited labour requirements mean that the culture could be undertaken as part time activities involving the least productive members of the household.
(iii) Establishment of carps in major tanks (reservoirs)
The main advantages of establishing carps in reservoirs would be that there could be better use of this natural resource. Contributions to other development objectives and to overall fish supplies are expected to be low during the next decade.
The costs of providing the seeds for the continued stocking programme are high, while the use of Ministry staff, other than aquaculturists, is low. One cannot be sure of the eventual success of the stocking programme.
(iv) Large-scale culture of shrimps by corporate enterprises
From the Government's point of view, the main attractions of a future involvement of local entrepreneurs and industrialists in shrimp farming are the contributions that subsequent shrimp exports might make to foreign exchange. It has little positive impact on the other Government objectives. In addition, it would make very small demands on the present staff and budget of the Ministry of Fisheries, as it could be assumed that both know-how and facilities would be provided by the local entrepreneurs, probably through employment of foreign expertise and use of foreign equipment.
The risk that such activities would be less than profitable is considerable. Sri Lanka does not have the space, soil and tide conditions which lend themselves to extensive culture and the systems that would be required are not proven economic successes.
(v) Smallholder shrimp culture
Smallholder culture of shrimp in ponds, while not contributing anything to local supplies of fish, would provide foreign exchange (as most of the product could be exported), employment and a high participation of the rural population in the benefits of economic development.
For it to become of relevance for many smallholders a fair amount of effort would have to be exerted by Government both in identifying suitable pond configurations and construction methods for the less than ideal soil conditions often obtaining in Sri Lanka and in identifying suitable culture practices. Thus, considerable inputs by Government by way of both staff and facilities would be needed. While not as risky for the smallholder as the large-scale venture for the entrepreneur, since Government would assume the risks during the development phase, success cannot be guaranteed.
(vi) Culture of marine fish in enclosures
Successful establishment of the culture of marine fish (in pens or cages) would be in accordance with almost all the Government's development objectives. The relatively low investment required, and the ease of culture would allow a rapid expansion as and when commercially viable systems were identified. The Government inputs for such a development to take place are rather modest; the risks to the operator seem to be small. It is not certain, but likely, that the Government eventually will be able to develop one or more economically rewarding culture practices.
(vii) Culture of molluscs
Culture of molluscs (in particular mussels and cockles, but also oysters) would contribute significantly to the Government's development objectives. However, the local market for molluscs needs to be developed.
Government would have to allocate rather modest resources for technical development; initially skilled aquaculturists would be involved more than extension workers. Risks in operation of full-scale culture systems are low to medium.
(viii) Culture of seaweeds
While culture of seaweeds would not help in achieving the Government's objective of producing more food, it could provide foreign exchange at very little foreign exchange expenditure. The activity would involve the rural population and would make use of underutilized natural resources.
Modest trials of seaweed culture have already been undertaken, and Government inputs for development of viable systems should be modest. The risks associated with the culture are relatively small.
(ix) Aquaculture in salterns
Culture of fish in salterns would make only a minor contribution to the Government's development objectives. Little new employment would be created, the total area of salterns being relatively small. The main attraction is the use of under-utilized water masses.
Appraisal of results projected for culture systems considered for inclusion in the strategic plan
| Culture system | Order of magnitude of commercial production | Contribution to development objectives when self-sustaining activity1 | ||||||
| Earliest date of production | Yearly harvest by 1985 (t) | Yearly harvest by 1990 (t) | Increase in local fish supply by 1990 | Creation2 of employment (man-years) | Improvement3 in foreign exchange (net inflow) | Participation of rural population in economic growth | Use of under-utilized natural resources | |
| Culture of fish in seasonal tanks | 1983 | 2 500 | 12 500 | large | little | nil | high | high |
| Pond culture of fresh water fish4 | 1982 | 50 | 200 | small | medium | nil | high | medium |
Establishment of carps in major tanks | 1988 | - | 2005 | small | little | nil | medium | medium |
Large-scale culture of shrimp by corporate enterprises | 1983 | 100 | 1 000 | nil | medium | positive | low | medium |
| Smallholder shrimp culture | 1984 | 5 | 200 | nil | medium | positive | high | high |
Culture of marine fish in enclosures | 1982 | 50 | 500 | medium | much | nil | high | medium |
| Culture of molluscs | 1983 | medium | medium | nil | high | high | ||
| Culture of seaweeds | 1983 | nil | medium | positive | high | high | ||
| Aquaculture in salterns | 1982 | 50 | 200 | small | little | nil | low | medium |
| Valli culture | 1983 | 50 | 800 | medium | little | nil | medium | high |
1 The following qualitative measurements are used to appraise the various culture systems:
Increases in local fish supply by 1990: large, medium, small, nil
Creation of employment (man-years): much, medium, little
Improvement in foreign exchange (net inflow): positive, nil, negative
Participation of rural population in economic growth: high, medium, low
Use of under-utilized natural resources: high, medium, low
4 Assuming that ponds are constructed explicitly for fish culture
Appraisal of type and quantity of Government inputs required to develop viable and self-sustained culture systems
| Culture system | Number of years to develop the system | Funds | Foreign expertise | Use of local staff | ||||
| External (millions of US$1 | Internal (millions of Cey.Rs.) | Need for foreign expertise | Man-years of expatriate specialists | Man-years of expatriate training for local personnel | Man-years of aquaculturist time2 | Man-years of fishery inspectors and/or extension worker time | ||
Culture of fish in seasonal tanks | 2–4 | TA: 1.0 Imp: 0.2 | 20–25 | yes | 6–8 | 1–2 | 30–40 | 150–200 |
Pond culture of fresh water fish | 1–53 | TA: 0.1 Imp: 0.1 | 1 | yes | 14 | - | 8–12 | 24–36 |
Establishment of carps in major tanks | 8–12 | TA: 0.1 Imp: | 6–8 | yes | 14 | - | 20–30 | 10–15 |
Large-scale corporate culture of shrimps in ponds | 2–3 | 5 | 5 | yes | 6 | 2 | 1–2 | 1 |
| Smallholder shrimp culture | 3–5 | TA: 1.0 Imp: 0.3 | 10–15 | yes | 4–6 | 2–47 | 15–25 | 45–75 |
Culture of marine fish in enclosures | 1–3 | TA: 0.1 Imp: 0.1 | 1–3 | yes | 1 | 1 | 5–8 | 15–24 |
| Culture of molluscs | 3–4 | TA: 0.5 Imp: 0.1 | 1–3 | yes | 2–4 | 2 | 6–12 | 18–36 |
| Culture of seaweeds | 2–3 | Imp: 0.1 TA: 0.1 | 1 | yes | 1 | 1 | 5–8 | 15–24 |
| Aquaculture in salterns | 1–2 | TA: 0.1 Imp: 8.1 | 1 | yes | 0.1 | 1 | 1–2 | 1 |
| Valli culture | 3–5 | TA: 0.1 | 5–10 | yes | 1–2 | 1 | 3–5 | 2–3 |
6 It is unlikely that this will be less than 10 man-years for any one company
7 This expertise would be used to run a multi-purpose marine hatchery
Appraisal of risk associated with culture systems considered for inclusion in the strategic plan for aquaculture development
| Culture system | Nature of risk1 | |||||
| Degree of technical sophistication2 | Damage from winds or from bad water quality | Disease | Economic | |||
| Seed production | Grow-out to commercial size | due to high inflation | due to fluctuations in exchange rate | |||
| Culture of fish in seasonal tanks | medium | low | low | low | N.S. | N.S. |
| Pond culture of fresh water fish | low3 | medium | low | low | N.S. | N.S. |
Establishment of carps in major tanks (reservoirs) | medium | low | high4 | low | N.S. | N.S. |
Large-scale corporate culture of shrimps in ponds | high | high | high | high | S. | S. |
| Smallholder shrimp culture in ponds | high5 | medium | high | medium5 | S. | S. |
Culture of marine fish in enclosures (pens or cages) | low | medium | medium | medium | S. | N.S. |
| Culture of molluscs | medium | low | medium | low | N.S. | N.S. |
| Culture of seaweeds | medium | low | medium | low | N.S. | S. |
| Aquaculture in salterns | medium6 | medium | medium | medium | N.S. | N.S. |
| Valli culture | low | low | medium | low | N.S. | N.S. |
Degree of technical sophistication: low, medium, high
Damage from wind or from water quality: low, medium, high
Disease: low, medium, high
High inflation: sensitive (S.), not sensitive (N.S.)
Fluctuations in exchange rates: sensitive (S.), not sensitive (N.S.)
3 From “low” to “medium”, depending upon species
5 From “medium” to “high” depending upon culture system (see Annex 19)
6 From “low” to “high” depending upon species
Government inputs for development should be very small. Some marginal effort would be made by the National Salt Corporation. The risks of failure would depend upon the species cultivated, but would be medium to low.
(x) “Valli” culture
While “valli” culture could be expected to make a reasonably good contribution to the local supply of fish, it would make only very minor contributions to other development goals, with the exception of use of under-utilized resources. It might be difficult to distribute the benefits (in terms of increased catches) in any predetermined manner amongst fishermen.
The inputs required by Government are relatively minor, and the risk of mishaps, once the system has been established, are relatively low.
In this section, the Mission's selection of culture systems for Sri Lanka is listed according to priority. It should be noted that it is only a ranking of the urgency of developing and introducing the various culture systems; priority should not be construed as meaning a need for massive use of Government funds. Thus, while considerable effort and funds may have to be spent on e.g. “culture of fish in seasonal tanks” and on “smallholder shrimp culture”, initial expenditures on cultures of seaweeds and molluscs will be relatively small. The culture systems identified as of first priority for the long-term strategy remain of first priority virtually independent of the amount of funds (and therefore facilities and personnel) available to Government.
In ranking, and selecting, culture systems the Mission attempted to evaluate the extent to which the various systems contributed to development goals, used Government resources and were exposed to risk (that is, the Mission tried to summarize the information contained in Tables 4, 5 and 6).
The method used to weight the data was as systematic and quantitative as was feasible with the information available and is explained in some detail in Annex 20.
The result of the weighting, or summarizing, of Tables 4, 5 and 6, is given in the first three columns of Table 7.
In order to arrive at a ranking of the culture systems, the information contained in Table 7 had to be summarized. Again the procedure used was systematic and quantitative (see Annex 20). Major importance was given to “expected achievements of Government's development goals” and to “estimated economic viability, using costs and technologies as known in 1980”; less was given to “risk” and to “probable changes in economic viability”.
The Mission's assessment of the information contained in Table 7 has led it to rank the culture systems in three groups. While the priority of the “first” group over the “second” and the “second” over the “third” is definite, the order of priority amongst culture systems within each of the two first groups is less so.
The first group, which thus should be accorded top priority, includes:
Summary appraisal of culture systems considered for inclusion in an aquaculture development strategy
| Culture system | Expected achievements of Government's development objectives2 | Projected use of Government resources for development of viable and self-sustaining system2 | Risk analysis2 | Expected economic viability1 | |
| Using costs and technologies as known in 1980 | Possible changes due to development during early 1980s | ||||
| Culture of fish in seasonal tanks | high | large | low | 1 | + |
| Pond culture of fresh water fish | medium | medium | low | 0 | + |
Establishment of carps in major tanks (reservoirs) | low | medium | low | -1 | 0 |
Large-scale corporate culture of shrimps in ponds | medium | low | high | 1 | + |
| Smallholder shrimp culture in ponds | high | large | high3 | 2 | + |
Culture of marine fish in enclosures (pens or cages) | high | medium | medium | 0 | |
| Culture of molluscs | high | medium | low | (0)4 | + |
| Culture of seaweeds | high | medium | medium | 15 | + |
| Aquaculture in salterns | low | low | medium | 1 | 0 |
| Valli culture | medium | low | low | -16 | 0 |
4 The Mission has not formally appraised economic viability of mussel culture
5 No formal appraisal made by the Mission
6 For those lagoons where water control structures must be built
The second group consists of:
The Mission excludes the following activity from a place in the strategic plan for aquaculture development:
establishment of carps in major tanks (reservoirs)
The Mission has not explicitly assessed the merits of aquaculture (in satisfying Government development objectives) relative to the rest of the economy. Therefore, it is not in a position to comment on the desirable overall level of funds that should be used to develop aquaculture.
The “aquaculture environment” in Sri Lanka appears comparatively stable, and the Mission does not expect changes in it during the next few years, such that the present plan needs to be significantly altered other than in ways indicated by the implementation of the plan itself.
