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A Study on Sri Lanka's Readiness to Attract Investors in Aquaculture With

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A Study on Sri Lanka's Readiness to Attract Investors in Aquaculture With A Study on Sri Lanka’s readiness to attract investors in aquaculture with a focus on marine aquaculture sector Prepared by RR Consult, Commissioned by Norad for the Royal Norwegian Embassy, Colombo, Sri Lanka Sri Lanka’s readiness to attract investors in aquaculture TABLE OF CONTENTS Table of contents .................................................................................................................................... 2 Abbreviations and Acronyms .................................................................................................................. 6 Background and scope of study .............................................................................................................. 8 Action plan - main findings and recommendations ................................................................................ 8 Ref. Annex 1: Regulatory, legal and institutional framework conditions related aquaculture ...... 9 Ref. Chapter I: Aquaculture related acts and regulations ............................................................... 9 Ref. Chapter II: Aquaculture policies and strategies ..................................................................... 10 Ref. Chapter III: Aquaculture application procedures ................................................................. 10 Ref. Chapter IV: Discussion on institutional framework related to aquaculture ......................... 11 Ref. Chapter V: Environmental legislation .................................................................................... 11 Ref. Chapter VI: Investing procedures in Sri Lanka, including incentives in custom, taxes and financing ........................................................................................................................................ 12 Ref. Annex 2: Strategies for building human resources, research and technology with a focus on marine aquaculture ....................................................................................................................... 12 Ref. Annex 3: Models for encouraging commercial development in marine aquaculture ........... 12 Ref. Chapter 1: Private companies, joint venture with foreigner ................................................. 12 Ref. Chapter II: Buy Back arrangements ....................................................................................... 13 Ref. Chapter III: Public-Private-Partnership arrangements .......................................................... 13 Ref. Chapter IV: Aquaculture parks ............................................................................................... 13 Ref. Chapter VI: Other models to encourage commercial development ..................................... 13 Ref. Annex 4: Why should foreign investor look into Sir Lanka? .................................................. 15 Ref. Chapter III: How to mobilize foreign aquaculture investors - by Sri Lanka ........................... 15 Annex 1: Regulatory, legal and institutional framework conditions related aquaculture ................... 15 I. Aquaculture related acts and regulations ............................................................................. 16 a) Department of Fisheries & Aquatic Resources ..................................................................... 17 b) National Aquaculture Development Authority of Sri Lanka ................................................. 18 c) Department of Animal Production and Health ..................................................................... 25 d) Recommendations ................................................................................................................ 25 II. Aquaculture policies and strategies ...................................................................................... 26 III. Aquaculture application procedures and licensing .............................................................. 29 IV. Discussion on institutional framework related to aquaculture ............................................ 32 a) Department of Fisheries & Aquatic Resources ..................................................................... 32 RR Consult, commissioned by Norad for the Royal Norwegian Embassy, Colombo 2 Sri Lanka’s readiness to attract investors in aquaculture b) National Aquaculture Development Authority of Sri Lanka ................................................. 33 c) National Aquatic Resources Research and Development Agency ........................................ 34 d) Research ................................................................................................................................ 34 V. Environmental legislation ..................................................................................................... 36 a) In the coastal zone ................................................................................................................ 36 b) Outside the coastal zone ....................................................................................................... 37 c) Marine Environment Protection Authority (MEPA) .............................................................. 39 VI. Investing procedures in Sri Lanka, including incentives in custom, taxes and financing. ..... 41 a) Board of Investment (BOI) .................................................................................................... 41 b) One stop shop ....................................................................................................................... 44 a) Labour law ............................................................................................................................. 45 b) Incentives .............................................................................................................................. 46 c) Financing/funding ................................................................................................................. 47 Annex 2: Strategies for building human resources, research and technology with a focus on marine aquaculture ........................................................................................................................................... 47 I. Universities ........................................................................................................................... 47 a) University of Peradeniya ....................................................................................................... 48 b) University of Kelaniya ........................................................................................................... 48 c) University of Ruhuna ............................................................................................................. 48 d) University of Sri Jayewardenepura ....................................................................................... 49 e) Wayamba University ............................................................................................................. 49 f) University of Jaffna ............................................................................................................... 49 g) Ocean University ................................................................................................................... 49 h) Conclusions ........................................................................................................................... 50 II. Foreign multi- or bilateral cooperation in aquaculture ........................................................ 51 a) FAO ........................................................................................................................................ 53 III. Strategies for research and development projects to support sector development ........... 54 Annex 3: Models for encouraging commercial development in marine aquaculture .......................... 56 I. Private companies, joint venture with foreigner .................................................................. 56 a) OceanPick .............................................................................................................................. 56 b) Ceylon Seafood Limited ........................................................................................................ 59 II. Buy Back arrangements ........................................................................................................ 60 a) Hailey’s .................................................................................................................................. 60 RR Consult, commissioned by Norad for the Royal Norwegian Embassy, Colombo 3 Sri Lanka’s readiness to attract investors in aquaculture b) Aqua N’Green Ltd .................................................................................................................. 63 III. Public-Private-Partnership arrangements ............................................................................ 64 a) Shrimp hatchery at Batticaloa ............................................................................................... 65 b) Divron .................................................................................................................................... 65 c) Marine fish hatchery Batticaloa ............................................................................................ 66 d) Recommendations ................................................................................................................ 66 IV. Aquaculture parks
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