Catching the wave of prosperity

Could water related industries bring new waves of prosperity to Sri Lanka? International experts seem to think so.

Visiting international marina consultant and developer, Simon J. Arrol, Managing Director of Arrol Ltd in Jersey has outlined exciting potential for Sri Lanka to Industry and Commerce Minister Rishad Bathiudeen.

Arrol, believes marinas are the boat parks and ‘the infrastructure’ for yachting. The marinas around the world constitute very high potential multi-billion dollar revenue sector and is closely linked to yachting and related activities such as diving, offshore fishing, and water-sports. In the UK, the equivalent of Rs. 280 billion ($ 2 billion) and 63,000 jobs are found in this sector. The reason is that along with boat parking, commercial property development such as shops and theme parks too spring up with Marinas.

 The beautiful coastline, the foreign tourists, and the increasing wealth of the professional classes in Sri Lanka mean that there is vast potential for doing marina business. Sri Lanka also has the necessary hospitality, boat-building, and sporting skills to add.

 The potential for Sri Lanka is so strong that if marinas, yachting, and related activities contribute just 5 percent extra revenue to the Government’s tourism target of the annual revenue of US $ 2.75 billion by 2016, then this sector alone will return $140 million (Rs. 17 billion) per year. This will be in addition to other benefits such as port development, creation of jobs and introduction of new sporting and leisure activities to the country. Also, Sri Lanka is well placed to develop all classes of Marinas – the “Ocean class” which are full-service marinas, “Coastal class”, which are limited-service marinas and “Yachting Stations” for safe, overnight berthing.”

Arrol also explained his evaluation of the potentials of a strong Marina in the capital. In his view a well-designed Marina in Colombo can boost its international profile significantly. It will draw leisure tourists and Colombo could become a marina destination. International marina events can be held regularly generating valuable worldwide publicity which will be almost free, an essential factor for a fast growing tourism destination.

Diving in Sri Lanka’s warm and coral sprinkled waters is another popular past time, which can help build the economy. Whale and dolphin watching is already reaping rewards even though it needs to be regulated more extensively for sustainability and environmental considerations. The fishing industry is another area that can be improved on as Sri Lanka despite being an island imports around US$145 million worth of fish every year.

With the end of the war fishing in the north and east has increased but there are significant infrastructure difficulties that hamper market access internally and externally. On aspect is that there are no freezing and packing plants, large boats with freezers on board or an efficient export avenue for the fish. In most cases transport costs are so high that most of the fish are sold at low prices but that benefit is not passed to the consumers. In such a scenario disorganisation means that imported fish are cheaper.

Inland fisheries and prawn farms among many other marine industries suffer from the same malady of high production costs and irregular market demand. If Sri Lanka can tap into these resources it could sail on the high seas of prosperity.