NATIONAL PLAN FOR DEVELOPMENT OF AQUACULTURE IN SRI LANKA^1/

1. BACKGROUND AND JUSTIFICATION

Fish contribute significantly to the protein intake of the people of Sri Lanka with 70 percent of the annual protein consumption being derived from fish. Present production of fish in the country is insufficient for the needs of the population and about 40 percent of the requirements have to be imported, largely in dried and processed forms. A recent restriction on importation of dried fish, due to national balance of payment problems, has reduced the per caput consumption of fish from 14 kg to 11 kg in the country emphasizing the need for increased local production. The domestic production of fish, amounting to 108 000 tons in 1974, is derived primarily from the coastal fishery. The 1974 inland fish component of 7 600 tons was mainly the result of stocking programmes (see table below).

Year	Annual fish production in Sri Lanka (tons)
	Deep sea	Coastal	Inland	Total
1970	3 258	86 588	8 296	98 142
1971	2 538	74 528	8 162	85 228
1972	2 557	90 706	8 437	101 700
1973	2 384	91 301	7 005	100 690
1974	2 230	98 794	7 658	108 682

Fish exports from Sri Lanka, particularly exports of shellfish, have increased in recent years as evidenced by the following figures:

Year	Quantity (tons)	Value (U.S.$)
1970	-	793 377
1971	-	938 566
1972	-	1 856 291
1973	1 008	3 491 580
1974	1 152	4 166 760

The figures for imports during the same period are as follows!

Year	Quantity (tons)	Value (U.S.$)
1970	43 932	13 882 131
1971	37 957	12 963 988
1972	41 456	14 957 213
1973	22 028	8 056 712
1974	16 716	7 777 607

^1/ Prepared by Mr. E.G. Goonewardene, Secretary, Ministry of Fisheries, Colombo and Mr. A.S. Mendis, Deputy Director (Research), Ministry of Fisheries

The present population of Sri Lanka is 13.85 million and is expected to rise to 17.1 million by 1985 and to an anticipated population of 21.5 million in 2000.

Fish is the preferred item of animal protein in the national diet and has been so over the years. With the rise in the standard of living, it is expected that the demand for fish and fish products will increase. In order to meet the increased demand for fish caused by the growth of population and the increase in per caput consumption, the Government has in its medium-term plan, 1972-77, provided for an increase in both marine and inland fish production. This is sought to be achieved by stepping up the mechanization programme in the coastal fisheries, expansion of the offshore and deep-sea fisheries, and a crash programme for the development of inland fisheries. A projected increase in production from marine and inland fisheries is indicated in the table in section 2.3.

It is anticipated that the total fish production will increase from 131 767 tons in 1975 to 334 780 tons in 1985, with production from inland fisheries accounting for 77 280 tons. With this increase in production, it will be possible to raise the present per caput consumption level of 11 kg to 25 kg as envisaged in the medium-term plan, 1972-77. In 1985, a population of approximately 17.1 million would require 427 500 tons of fishery products at a per caput consumption of 25 kg as against the estimated production of only 334 880 tons.

It is expected that of the total production in 1985, 10 percent of the marine fish production could be exported together with a very small proportion of production from coastal aquaculture.

1.1 National Policies

The national economic development policies envisage the ultimate attainment of self-sufficiency in food production both in the agriculture and fisheries fields. The land policies of the Government are directed toward elimination of large holdings as well as non-resident ownership, and increase in employment and productivity. Rural community development projects receive high priority and small export-oriented industries are encouraged. Foreign exchange savings will be affected by reducing consumption expenditure. Export earnings will be encouraged by special incentives for export-oriented industries.

The Government has recognized the importance of inland fisheries and aquaculture in attaining national objectives and improving the nutritional status of the people. It has, therefore, given high priority to a crash programme for the development of inland fisheries through aquaculture to increase the production of fresh fish and dried fish of suitable species to offset as far as possible the reduction in imports brought about by the recent restriction.

2. OBJECTIVES AND GOALS OF AQUACULTURE DEVELOPMENT

Development of inland fisheries in Sri Lanka has been through the stocking of lakes, reservoirs and ponds with Tilapia and common carp, which were introduced about 25 years ago. The yield from fresh and brackish waters average about 150 kg and 12 kg/ha respectively. Expertise in the field of aquaculture is limited. To remedy this and to increase production from the 200 000 ha of inland waters, the short-term objectives as set out in the crash programme for inland fisheries development envisaged the establishment of 13 freshwater extension centres and six brackishwater centres (i.e., one in each administrative district) at a cost of approximately Cey.Rs. 12 million^1/ .The projected increase in production is from 7 600 tons to 26 000 tons by 1977, comprising 20 250 tons from fresh water and 5 350 tons from brackish water by 1977. The work on the crash programmes is supplemented by the establishment of a Freshwater Fish Breeding Experimental Station through bilateral aid from China at a cost of approximately Cey.Rs. 10 million. This station is expected to supply initially about 400 000 fingerlings of grass carp and bighead carp for stocking of ponds, reservoirs arid farms.

^1/ U.S.$ 1.00 = approx. Cey.Rs. 7.12

Anticipated fish production through aquaculture will be as follows:

		Present production (kg/ha)	1980		1985
			Expected production (kg/ha)	Yield (tons)	Expected production (kg/ha)	Yield (tons)
Fresh water
	- large, low country reservoirs (56 000 ha)	150	400	22 400	650	36 400
	- "villus" (flood lakes) (4 000 ha)	75	200	800	400	1 600
	- village reservoirs (12 000 ha)	50	200	2 400	500	6 000
	- hill-country reservoirs (8 000 ha)	15	50	400	75	600
	- river and streams (8 000 ha)	5	10	80	10	80
	- fish farms	-	4 250 ha at 2 tons/ha	8 500	5 250 ha at 4 tons/ha	21 000
Total				34 580		65 680
Brackish water
	- deep lagoons	30	75	6 000	100	8 000
	- small lagoons and swamps (40 000 ha)	20	50	2 000	75	3 000
	- fish farms	-	200 ha at 1 ton/ha	200	400 ha at 1.5 tons/ha	600
Total				8 200		11 600
Grand total				42 780		77 280

In view of the lack of a technological base, and limited developments in fish farming in the past, a short-term (3-5 years) period has to be considered as an experimental phase for developing a suitable system of culturing the major carps. A target of 2 tons production per ha in 1980 is anticipated. The medium-term (10 years) objective is to develop intensified aquaculture to meet the production target of 4 tons/ha by 1985. The anticipated production target for brackishwater farms by 1985 is significantly less than half that of freshwater farms. The long-term objective will be to further intensify production to achieve yields higher than 4 tons/ha of water. It is hoped that this can be done by:

(i) the development of fish farms;
(ii) the development of fish feeds;
(iii) environmental improvements, e.g., oxygenation;.
(iv) genetic improvement of cultivated species.

2.1 Sectoral Priorities

In the short term (five years) the public sector will be largely responsible for the production programme. Once the economic viability of aquaculture is demonstrated, it is expected that the cooperative and private sectors will participate in aquaculture development. It is not anticipated that joint ventures will have a place in freshwater aquaculture, but this could be considered for brackish water and mariculture.

2.2 Levels and Scales of Production

Though subsistence-level fishing in inland fisheries is prevalent, it is unlikely that subsistence-level aquaculture for home or village consumption will develop to any great extent, at any rate in the short term, because of religious and social prejudices. Small-scale, low-investment/commercial-type operations are envisaged in the medium - and long-term phases when production levels of 2-4 tons/ha are attained.

2.3 Targets

The targeted production in 10 years with projections up to the year 2000, are given below. Reliance will be placed on carp culture in freshwater ponds and more intensive production from large open waters.

Annual Production Targets (tons)

		1975	1976	1977	1980	1985	1990	2000
Marine fisheries		118 005	133 633	151 152	190 000	257 500	335 000	500 000
Aquaculture
	- freshwater	11 010	17 466	21 380	34 580	65 680	83 640	98 026
	- brackishwater	2 752	4 342	5 320	8 200	11 600	20 905	24 590
Total		131 767	155 441	177 852	232 780	334 780	439 545	622 616

2.4 Cultivated Species and Production Systems

The species which will be selected for culture include the following:

(i) Tilapia spp.
(ii) Varieties of common carp
(iii) Chinese carps - grass carp, silver carp, bighead carp and mud carp
(iv) Indian carps - rohu, catla and mrigal
(v) Air-breathing fish - catfish and murrels
(vi) Rainbow and brown trout
(vii) Mahseer for selected streams
(viii) Giant freshwater prawns
(ix) Penaeid prawns
(x) Chanos, Lates and Mugil spp.
(xi) Seaweed (Gracillaria)
(xii) Oysters and mussels.

At the present time, fish culture techniques for these species have not been developed in Sri Lanka. The technology will be developed through the work of the Freshwater Fish Breeding Experimental Station (established with aid from China) and the Central Institute for Aquaculture Development and Training, for which assistance has been requested from UNDP.

3. ESTABLISHMENT OF INFRASTRUCTURE

3.1 Extension Service

The existing extension service in aquaculture is extremely limited. To remedy this, steps have been taken to set up 19 extension centres in different parts of the country by 1977. These extension centres will be used for the organization of demonstrations for new staff and prospective fish culturists. The base for an extension service has been created by the recruitment of university science graduates, who have undergone training in China through support from a UNDP programme. More graduates have been appointed and it is expected that they will receive similar training in 1976 and possibly in 1977. These officers will be supported by other staff both during and after the present experimental stage.

External technical assistance for establishing an extension service has been sought under:

(a) a bilateral agreement with the People's Republic of China;

(b) UNDP assistance for setting up the Central Institute for Aquaculture Development and Training;

(c) FAO/SIDA - Establishment of a Centre for the Development and Marketing of Fish Products, to be operational in the beginning of 1976.

It is expected that advice and assistance in the design and construction of fish farms and other installations, farm management, health inspection and disease control, harvesting, processing and marketing will also be available from these sources.

3.2 Inputs

The total requirements for fish seed for the expanded aquaculture production programme will be as follows:

			Fingerlings (millions)
Fresh water
	- large reservoirs 56 000 ha at 1 500 fingerlings/ha		84.0
	- "villus" (flood lakes) 4 000 ha at 1 500 fingerlings/ha		6.0
	- village reservoirs 12 000 ha at 2 000 fingerlings/ha		24.0
	- hill-country reservoirs 8 000 ha at 750 fingerlings/ha		6.0
	- fish farms:
		4 250 ha in 1980 at 4 000 fingerlings/ha in 1980 (17.0 million)
		5 250 ha in 1985 at 5 000 fingerlings/ha in 1985	26,0
Total			146.0
Brackish water
	- deep lagoons 80 000 ha at 500 fingerlings/ha			40.0
	- small lagoons 40 000 ha at 1 000 fingerlings/ha			40.0
	- fish farms			3.0
		100 ha in 1980 100 ha for shrimp at 30 000/ha
		300 ha in 1985 300 ha for finfish at 5 000/ha		1.5
Total				84.5
Grand Total				230.5

The fish seed requirements indicated above will be produced by the following:

	Fingerlings (millions)
(a) The existing inland fisheries stations	12.0
(b) New inland fisheries stations to be set up under the crash programme	15.0
(c) Freshwater Fish Breeding Experimental Station	2.0
(d) Central Institute for Aquaculture Development and Training proposed to be established with UNDP assistance	15.0
(e) Collection from natural sources and supplemented by aid programmes/purchases from abroad	86.5
(f) New seed production units	100.0
Total	230.5

Supplementary fish feeds will require development and this will be done under the proposed UNDP programme referred to earlier. Fertilizer and feed requirements for fish farms are indicated below:

	1980 4 250 ha of ponds feed (tons)	1985 5 650 ha of ponds feed (tons)
Lime (0.5 tons/ha)	2 125	2 825
Inorganic fertilizer (0.7 tons/ha)	2 975	3 955
Organic manure (6.25 tons/ha)	26 562	35 312
Feed (rice, bran, oil cake, etc.) (2 tons/ha)	8 500	11 300

3.3 Training of Fish Culturists (Farmers)

Training of fish culturists (farmers) will be carried out by the extension/demonstration centres which are being set up under the crash programme and at the other existing stations. It is expected that the training would be carried out at 20 centres, each training two classes of 25 fish farmers/year.

3.4 Training of Core Personnel

The categories and numbers of personnel to be trained are as follows:

(i) Research officers/understudies to UNDP experts (honours graduates) approximately eight.

(ii) Fish culturists (university science graduates) approximately 40;

(iii) Other staff will, it is expected, be trained locally at the Institute for Aquaculture Development and Training and at the Freshwater Fish Breeding Experimental Station.

The core personnel, particularly the fish culturists, will have to be trained at a regional or sub-regional centre to be set up for the purpose.

3.5 Organizational Research

For research in aquaculture, the Ministry of Fisheries, Sri Lanka, has its main freshwater research station at Polonnaruwa. A smaller freshwater station is located at Uda Walawe, a midland freshwater research station is under construction at Ginigathena, and there is a trout farm with a hatchery at Nuwara Eliya. For research in brackish aquaculture, there is a farm at Pitipana, Negombo. However, the above farms and laboratories cannot fulfil the anticipated research needs. For developing techniques of intensive aquaculture, especially of the Chinese carps and Indian major carps, and for undertaking adaptive research in respect of technologies developed elsewhere for the above species, there is a proposal to set up, with UNDP assistance, a Central Institute of Inland Aquaculture Development and Training with four stations located in different agro-climatic zones of the country. There are also proposals to set up with UNDP assistance a running-water fish culture centre, and to enhance the capabilities of the present trout farm in order to carry out development-oriented research for commercial trout production. In the field of brackishwater fish culture, there is a proposal to carry out investigations leading to the development of farms suited to the tidal regime prevalent in Sri Lanka and to develop a system for breeding and culture of the giant freshwater prawn Macrobrachium.

Research personnel are proposed to be trained in Canada, China, India, Japan, the Philippines, Malaysia and Thailand. Theoretical and practical instruction to students, teachers, extension workers and prospective fish culturists will be given at the Central Institute of Inland Aquaculture Development and Training and its regional stations. Extension and demonstration of technology developed at the research station in respect of warm freshwater fish culture will be undertaken at nine centres widely distributed throughout the country. Technologies developed for running-water culture, trout culture, Macrobrachium culture, and brackishwater fish farming should be demonstrated to fish culturists and fish farm personnel at the relevant research stations.

Equipment for research is expected to be acquired with UNDP assistance and from local sources.

The estimated expenditure of Sri Lanka Government on the establishment of the Central Institute of Inland Aquaculture Development and Training, its four regional stations, the running-water fish culture centre, trout production commercialization centre, and the Macrobrachium centre at the brackishwater farms investigation centre is expected to be approximately Cey.Rs. 10 million (i.e., local contribution). The UNDP contribution has not yet been finalized, but is expected to be in the region of U.S.$ 1.5 million.

4. PRODUCTION PROGRAMMES

4.1 Financing and Credit

The first stage of 3-5 years will be primarily a period of experimentation, in which the public sector will play a leading role with assistance from the UNDP and through bilateral aid.

The second stage (1980-85) will involve intensification of production with the participation of cooperative and private sectors, in small- and large-scale activities. It is expected that the financing of inputs will be undertaken by the two State banks as was done in the case of the poultry industry, and as has been agreed to for the financing of inputs under a special marine fisheries project. It is expected that, as in the case of this fisheries project, the extension services of the Ministry of Fisheries will act as a link between the borrower and the banks and that the banks will be guided by the recommendations of the extension arm of the aquaculture group.

4.2 Phasing and Management of Production Programmes

4.2.1 Areas to be developed

These will be largely the low-country plains. Aquaculture will be undertaken with warm-water fish mainly, while trout culture will be undertaken in the hills. The management of production programmes will largely be the responsibility of the public sector in the experimental phase of the development programme with the private and cooperative sectors taking over thereafter.

Arrangements for the acquisition of sites for extension/demonstration centres will be carried out under the normal acquisition procedures available to Government under the existing laws of the country. The cooperatives and private sectors are not expected to have any special difficulty in obtaining sites for the establishment of viable projects.

4.2.2 Construction of farms and installations

As far as the construction of farms in the public sector is concerned, the appropriate department of the Government which has experience in related fields will be given the responsibility. An expert in farm construction and installations is expected to be provided through the proposed UNDP project.

4.2.3 Manpower requirements

(a) A total of 48 scientific staff and 72 personnel for auxiliary, technical and extension work will be required.

(b) It is anticipated that the employment generated through aquaculture will be as follows:

		1980				1985
		Yield (tons)	Employment potential			Yield (tons)	Employment potential
			Full-time	Part-time	Ancillary		Full-time	Part-time	Ancillary
Fresh water
	- large low-country reservoirs	22 400	6 400		2 133	36 400	10 400		3 466
	- "villus" (flood lakes)	800	228		76	1 600	457		152
	- village reservoirs	2 400		1 846		6 000		4 615
	- hill-country reservoirs	400	114		38	600	171		57
	- rivers and streams	80		61		80		61
	- fish farms	8 500	8 500		2 833	21 000	10 500		3 500
Total			15 242	1 907	5 080		21 528	4 676	7 175
Brackish water
	- deep lagoons	6 000	1 714		571	8 000	2 285		761
	- small lagoons and swamps	2 000		1 538		3 000		2 307
	- fish farms	200	200		66	600	400		133
Total			1 914	1 538	637		2 685	2 307	894
Grand Total			17 156	3 445	5 717		24 213	6 983	8 069

The employment potential of aquaculture has been estimated on the basis of the following assumptions:

(i) In the large, low-country reservoirs, villus, hill-country reservoirs, and deep lagoons, fish is commercially harvested mainly from dugout canoes and log-rafts, each craft being manned by two fishermen. The average annual catch of a unit is estimated at 7 tons. Each 7-ton unit of catch will provide employment for two persons.

(ii) In the village reservoirs, rivers and streams, and small lagoons and swamps, fish is harvested by subsistence fishermen using rod and line, castnets, or other simple gears. The average catch/fisherman is estimated at 1.3 tons at the rate of 10 lb (4.5 kg) per day for 300 days. Fishing is considered a part-time employment for these persons.

(iii) The average size of each freshwater fish farm is assumed to be 1 ha, and the average size of a brackishwater fish farm is 2 ha. Each farm will be operated by one family unit as a full-time occupation. Each farm is deemed to provide full-time employment for two persons - one male adult and one female adult.

(iv) Ancillary employment will be provided in processing, transport, sale of fishing equipment, constructing fishing craft, supply of fertilizer, supply of fish food, supply of spawn/fingerlings and in wholesale and retail marketing. The number of persons for which ancillary employment is provided is assumed to be one third the number of persons for which full-time employment is provided by fish production.

4.2.4 Training of core personnel for production programmes

Apart from core personnel dealt with in section 3.4, it is expected that 1 000 persons (50 persons a year at 20 centres) will be trained each year at extension/demonstration centres run by the Ministry of Fisheries.

4.2.5 Health and disease control

Various external and internal infections of fish caused by bacteria, viruses, fungi, protozoa, Crustacea, etc., are known to afflict fish. These infections and infestations, and their control, become more significant and important as aquaculture techniques become more intensified. The proposed Central Institute for Aquaculture Development and Training is expected to develop the capability required to deal with problems of fish diseases as they develop.

4.2.6 Organization of harvesting and marketing

There already exists a demand for freshwater fish in Sri Lanka, and markets also exist throughout the country for sale of fish. Suitable harvesting and marketing procedures for the produce of aquaculture will be developed in the country consistent with the social and religious circumstances of the people. Part of the fish will be marketed in the dried or smoked form.

The Ceylon Fisheries Corporation, the cooperative wholesale establishment and cooperative societies will also be associated with marketing of aquaculture products. Ice-making and fish storage capacity for marketing are available to meet expected demands. Assistance in product development will come from the FAO/SIDA Centre for the Development and Marketing of Fish Products.

4.3 Budget

Estimated capital and annual operational costs of aquaculture development projects are given below:

	Local capital requirements (million Cey.Rs.)	Recurrent expenditures (million Cey.Rs.)	Expected returns (1985)	Remarks
			Million fry
Existing freshwater stations1/ (A)	3.5	0.5	12.0	Fry of common carp, tilapia, etc.
Crash programme stations1/ (B)	12.2	0.5	15.0	Fry of common carp, tilapia, etc.
Proposed Central Institute for Aquaculture Development and Training (C)	10.02/	1.5	15.0	Fry of common carp, tilapia, etc., and major carp
Freshwater fish breeding experimental stations	10.0	0.5	2.0	Fry of Chinese carp
Collection and distribution of fry from natural sources	-	-	86.5	Funds from items (A) and (B)
New seed production units	5.0	0.5	100.0	Fingerlings of all types of fish
			Tons of fish
Construction of new ponds	100.0	5.0	21 500	Capital is for construction of new ponds
Increasing fish production in large reservoirs	-	-	36 400	Funds for the purpose have been pro vided under items (A) - (C)
Increasing fish production in "villus" (flood lakes)	-	-	1 600	Funds for the purpose have been pro vided under items (A) - (C)
Increasing fish production in hill-country reservoirs	-	-	600	Funds for the purpose have been pro vided under items (A) - (C)
Increasing fish production in village reservoirs	-	-	6 000	Funds for the purpose have been pro vided under items (A) - (C)
Increasing fish production in deep lagoons	-	-	8 000	Funds for the purpose have been pro vided under items (A) - (C)
Increasing fish production in small lagoons and swamps	-	-	3 000	Funds for the purpose have been pro vided under items (A) - (C)

^1/ Fry production will be in addition to other functions of these stations
^2/ The UNDP contribution is likely to be in the region of U.S.$ 1.5 million

Sri Lanka has had no experience of commercial fish farm construction, hence any estimates of capital outlays on farm construction would be merely conjectural. Detailed capital outlays will be known after the exact areas of cultivable waters of the country have been identified and some commercial farms constructed. Apart from fish farm construction, there is recurring expenditure in fish culture, such as cost of pond manuring and fertilization, cost of producing or procuring stocking material, cost of feeding fish, pond maintenance, harvesting and marketing. It is expected that the cost of production of fish would not exceed Cey.Rs. 2/kg. If the rate of production is 4 000 kg/ha/year then, at the wholesale rate of Cey.Rs. 4/kg, one can expect a gross income of Cey.Rs. 16 000/ha/year. After allowing for operational costs, a net income of Cey.Rs. 8 000/ha/year could be expected. The rate of production can substantially increase with further development of technology, imparting a greater measure of economic viability to aquaculture.

4.4 External Assistance Requirements

Technical assistance required for the implementation of the development programme will be in the following fields:

(i) Fish farm designing
(ii) Fish breeding
(iii) Fish culture techniques in static and running waters
(iv) Commercialization of trout production
(v) Macrobrachium culture.

Over a period of four years, the foreign cost of the above would be approximately U.S.$ 800 000. Meanwhile, equipment required for the implementation of the programme would cost approximately U.S.$ 750 000.

While the national centre referred to earlier will engage in the short-term programmes of improvement of production technology, training of technical manpower, etc., the country will have to lean heavily for its long-term requirements on the proposed regional centre for aquaculture development. This regional set-up is particularly important to a country like Sri Lanka, with its high priority for fish production through aquaculture to reduce the large protein deficiency of an expanding population, to raise the employment potential in rural populations, to improve the technical competence in different aquaculture fields, to train core personnel and to raise aquaculture for subsistence-level production to the level of an organized industry.