A STUDY REPORT ON Implications of Blue Economy IN BY NAFSO – Sri LANKA & SNEHA - INDIA

RESEARCH TEAM A.Gandimathi, JESU RETHINAM, JONES THOMAS SPARTEGUS AND SRIDHAR RAO What is Blue Economy in Sri Lanka • The ecosystems of the Ocean and Coast to be opened up by coastal nations to private investors in sustainable way through ecosystem integrity to fulfil food security, decent livelihoods and economic growth. Our Assumptions ❖Ecological externalities such as loss of biodiversity as an inevitable consequence of exploitation of coastal and marine resources. ❖Exclusion of Marine and Coastal Communities from their habitats, governance and user rights on marine and coastal commons, and resulting in loss of livelihoods by allowing oceans and coasts as open access systems. ❖Enforcement of Maritime Security as a deliberate strategy of blue economy towards increasing global governance. Adoption Of Blue Green Economy

Focal Point 2013 •Efforts to enhance management Preparatory Meet SIDS at Seychelles mechanisms that minimize and mitigate unsustainable exploitation 2013 of marine resources. Nairobi Convention SIDS •State will entail a fundamental, systemic change in policy, legal 2014 and governance frameworks. Abu Dhabi Convention IORA •Enabling mechanisms include technology transfer, capacity building, targeted streamlined 2016 financing mechanisms, including Formal Launch Sri Lanka debt for nature with a scientific approach. Salient Features Of Blue-green Economy • Clean industries engaged in low carbon emission production. • Watershed restorative, health preserving organic agriculture for food security. • Renewable energy generation, low loss transmission and energy storage utility sector. • Green LEED standard construction industry • Creating an alternative energy: • Creating Green Cities and Villages that are healthy and safe to live. • Blue Green economy workforce. • Unlocking the value of Ocean’s living resources sustainably. • Research on biodiversity rich marine biological resources to discover new medicines and products. • Exploring ocean mineral & seabed resources to establish high technology “clean industries” for global market. • Establishing low carbon footprint port facilities • Developing a conservation-oriented tourism industry using renewable energy resources in the coast and oceans. • Promoting coastal recreational, beach, game fishing and water Sport activities • Opening up maritime archaeology and being the guardian of the Indian ocean • Pursuing new global opportunities in ocean energy • Developing coastal area protection measures and upgrade our coastal area habitat infrastructure Mega Policies Related Projects Under Blue Economy Mega Polis Projects National Physical Plan 2010-2030

Construction of Mega Cities, Industrial Zones, Super High Ways, Air Ports, Harbours in coastal areas by converting mangrove forest, Beaches and lagoons for Industrial Development and Tourism as a Smart Nation.

Nearly 150 Military runs shops, restaurants and holiday bungalows along A9 Road and Passikudah Beach.

Megapolis Development Program

Jaffna, , , Galle and Hambantota are being promoted as Metropolitan cities by conversion of coastal and forest lands VISION - 25 Land Administration Reforms It includes changes in the policy, Deregulation of Land Acquisition Act and Rights under Property Act. Labour Law Reform Labour Laws are deregulated and legal entitlements will be rested with the employers. Restructuring Social Safety Net Programs Employers Provident Fund and Employers Trust Fund, Public Servants Pension Scheme were diverted for development Boosting Technology Acquisition &Digitization Digital and network infrastructure Digital Skills, Skills development and Digital Literacy; Data Protection and Cyber security Leadership reforming and reinventing laws, regulation and process Trade and Security Agreements for Sri Lanka • Millennium Challenge Compact (MCC) for a grant of $480 million to develop Transport Corridors and Land Bank for -Trincomalee corridor. • Acquisition Cross-Servicing Agreement (ACSA) and the proposed Status of Forces Agreement (SOFA) as military agreement between Sri Lanka and the US. • Sri Lanka-Singapore Free Trade Agreement (SLSFTA) of 2018 with deregulations of investment and labour laws and permission for garbage waste from Singapore. • M0U on Trade and Economic Cooperation in May 2013 and Free Trade Agreement negotiation in 2014 between China and Sri Lanka. • Numerous Military agreements between Sri Lanka- China and Sri Lanka-India. India’s overall fund commitment stands close to $3 billion, out of which around $560 million are in grants $50m grant for SL military in 2019. • Trilateral Maritime Security Cooperation with Sri Lanka, India and the Maldives. • IORA Mauritius Agreement signed by Sri Lanka with 21 countries in 2015. • Sri Lanka signed Xiamen Declaration for BE, which was supported by FAO and Convention for Trade in Endangered Species (CITES) involving 13 important fishing countries. • The EU, in January 2015, imposed a ban on Sri Lanka’s fish exports, with official reason of engaging in IUU fishing activities, which was revoked in June 2016 after the enactment of new fisheries laws and policies in Sri Lanka. The Components Of The Blue Economy Taken For The Study

• Port City Project in Colombo • Chundikulam National Park – • Fisheries Sectors in and Negambo oWomen Fish Workers around Negamboo Lagoon oKuttiduwa Fish Workers • Highway Corridor (A9) from Negambo to Jaffna (Mullivaikal) CHUNDIKULAM NATIONAL PARK COLOMBO PORT CITY

A9 HIGHWAY KANDY TO JAFFNA MULTI DAY BOAT BY SOUTHERN FISHERS SSF IN POINT PEDRO

DRY FISH VENDORS IN NEGAMBOO KUTTIDUWA FISH WORKERS FISHERIES–NORTH – OBSERVATIONS Northern Region has traditional fishing communities. There are at least 1,337 fishing villages in the marine sector, with 1,289 in the inland sector. Year Changes in the Fishing Sector 1950 Kattumarans with Cotton Nets replaced by Nylon Nets from Japan. 1975 Mechanized Boats and Trawlers were introduced from Norway.

1983 Before 1983 contributed 43% of ’s Fishing Economy. Afterwards restrictions imposed by Navy, Tigers, and also Indian Peace Keeping Force(IPKF). 2004 Northern coast was devastated by Tsunami which further marginalized the coastal communities. 2009 Slow and gradual recovery. At present, Northern Province contributes 23% Militarisation of the coasts, service delivery and governance are the major issues being experienced by the people of the Northern Province. IMPLICATIONS •The construction of Infrastructure projects like Restaurants, Resorts, Desalination Plants and Naval Base along the A9 Road have displaced the coastal communities and many of them are settled in Internally Displaced Persons (IDP) camps and 82,000 Women Headed Families were worst victims of displacement where SSF are wage laborers in other sectors. •Deep-sea and High Sea commercial fishing vessels from Southern Province (multiday boats) and Indian trawlers are not regulated by the State . •Promotion of Chundikulam National Park has displaced people in and around Jaffna lagoon who were dependent on fishing.

The following projects are also depriving the communities access to livelihood Onshore Wind mills – Anairavu and Mannar by Malaysian, Chinese, Indian companies. Army’s coastal tourism projects Paruthithurai commercial port (Point Pedro) Offshore oil exploration in Pesalai and Trincomalee Industrial shrimp farming and Salt harvesting in Kilinochi Check dams preventing freshwater meeting the sea Inadequate social security measures for fishers FISHERIES –SOUTHERN PROVINCE OBSERVATIONS Shift in Fisheries (Traditional to Commercial) Kattumarans and Beach siene were the main gears in 1950s. Then, the Long Plank Boats with Outboard Motors were introduced in 1960s, followed by the introduction of single-day Small Mechanised Boats with Inboard Engines.

Some fishers improved the Small Mechanised Boats with cold storage facilities and used them for multiday fishing. With the support of Norway and Japan, multiday long line and gillnetting, and also Trawling were introduced.

Changes In Crafts And Gears

• SSF started using Motorised and Mechanised with the minimal non-motorised boats. • Multiday Boats with 45 feet got engaged in fishing in n waters mostly in Mannar, Trincomalee, and Mullativu. • Multiday Boats above 45 feet were fishing in the High Seas as well as Territorial Waters of Red Sea, Diego Garcia and other regions in Indian Ocean Rim. IMPLICATIONS • The Colombo Port City Project has already resulted in massive destruction of large scale to coastal ecology and near-shore fishery resources and habitats of fishing communities. SSF no longer have adequate fish catch. • The Southern Coast is facing Sea Erosion, Sea Water Intrusion, Coastal Flooding and vulnerable to natural hazards. • The EU Fish Trade Ban in the name of regulation had forced Sri Lanka to bring in “sustainable fishing”. • High-Sea multi day Deep-sea boats are under Vessel Monitoring Systems regime. Sea Food Exporters Association are trying for MSC certification. • Foreign EU vessels from Seychelles and Mauritius were allowed to fish in the same areas such as Southern fishing fleets. • The Deep-sea vessels were employing the Sri Lankan fishers as labourers. • The SL Government was constructing fishing harbours for landing the Multi Day Deep-sea boats in the north supported by Asian Development Bank (ADB), infringing on northern fisher’s rights. ISSUES AND CONCERNS IN FISHERIES SECTOR

• Adoption of Neo-Liberal Economy in 1977 and B.E in 2016. • Deregulation of Labour laws, Environment laws, Social Security Policies • Shift from Production to Trade and Service sector • 100% equity for Foreign Direct Investment • Investing Public Funds (EPF and Pension Funds) in Mega Projects • Conversion of Inland water bodies in Northern Region for industrial aquaculture – (drinking water sources, Irrigation Channels, Lagoons, Reservoirs). • Destruction of Traditional Pathways, Waters Ways, Flood plains and extraction of ground water for intensive shrimp farming resulting in drying up of surface water bodies as resulted in acute water crisis, health hazards like kidney stone and waterborne communicable diseases in the north. • Conversion of coastal lands into tourism, aquaculture, hotels, infrastructure and development projects, with the direct intervention of military and forced eviction of coastal communities. ECOLOGICAL IMPICATIONS OF PORT CITY

• Loss of habitats and coastal lands of fishing communities from Negombo- Pitipana coastal belt in Morawala, Udappuwa in Puttalam, Calido Beach in Kalutara and the coastal belt in Mount Lavinia, Dehiwala and Ratmalana due to sea erosion and the increasing vulnerability to stormy cycles and Floods. • In addition to Biodiversity loss (wildlife, agro-diversity), Food insecurity (crop damage), Soil contamination, Large scale disturbance of hydro and geological systems, Noise pollution, Soil erosion, Deforestation and loss of vegetation cover in the terrestrial eco-system. • Destruction of both terrestrial and coastal eco-system has resulted in Displacement, Loss of livelihood, Social impacts on women, Land dispossession, Loss of landscape/sense of place. • Destruction of coral reefs and spawning grounds and habitats of fish, sea bed weeds, mangroves and sea grass habitats due to sand mining on the sea bed • People may consume heavy metals via the food chain from detritus feeders fauna by fishes . Gender Implications of B.E Projects

• Commercial fishing and Industrial aquaculture has displaced Women from the value chain and supply chain. • Salinization of land and ground water resources and non availability of drinking water which adds to the work load of women and serious health hazards like development of kidney stones. • Conversion of coastal land for industrial and infrastructure projects have pushed them from their original habitats. Many of them are resorting to IDP camps, not by choice but by forced eviction without any compensation for loss of land and livelihood. • The women in IDP camp faces physical insecurity and economic insecurity. There is no adequate infrastructure facilities including water, drainages and toilets. • Exclusion of women fish workers in policies, legislations. CONCLUSIONS 1. The deregulation of environmental laws, social security programmes and land reforms have promoted the financilization and commodification of Natural Capital resources to the benefit of Global players and Corporates at the cost of peoples habitat and livelihoods. 2. Blue Economy an extension of ongoing Neoliberalism is an accumulation strategy of finance capital backed by the state promoting free markets and private corporates within and outside the country to the benefit of an emerging oligarchy and creating new forms of social exclusion and conflict among the coastal and other marginalized communities. 3. Thus the assumptions made in the study is validated through the empirical evidences from the implications of • Industrialization of capture and culture fisheries leading to displacement of traditional fishers • Promotion of development projects (Port city project, A9 Highway corridor, ) by the conversion of ocean and coastal commons • Exclusion of women from supply and value chain • Militarization of the coast by exercising control over development interventions by the Army These prove the process of externalization of ecological resources, exclusion of SSF and Women and enforcement of Military for the accumulation of Global capital and centralization of Governance at the National and Global level. RECOMMENDATION

1. Constitutional Amendment must be ensured which must necessarily reflect new perspectives on economic (right to life and livelihood) and social rights, including environment and sustainable development. 2. Devolution of powers and funds to Northern Province and local self- governments should be ensured. Public discourse in the Parliament on the ongoing major reforms should be facilitated for protecting the rights ensured in the article12 of the constitution which ensures right to equality and protection for all. 3. In-depth research on the impact of port city projects, industrial fishing and aquaculture and tourism on the coastal, marine and terrestrial eco-systems and their cumulative impact on the livelihoods, habitats of the fishing communities especially SSF and women. 4. Comprehensive cumulative impact study encompassing technical, socio- economic, environmental and financial aspects to be made for port city project. 5. Revisiting policies and legal provisions and the economic reforms to ensure the inclusion of SSF and women fish workers by ensuring gender and environmental justice. 6. Reparation Packages to the victims of development to be ensured through legal measures.