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Sri Lanka’s Chamber of Marine Industries of Sri Lanka charts course for $ 2 billion maritime economy

Sri Lanka’s Chamber of Marine Industries of Sri Lanka charts course for $ 2 billion maritime economy

Daily FT: The Chamber of Marine Industries of Sri Lanka (CMISL) unveils a visionary five-year strategic plan designed to transform the nation’s maritime industry. This ambitious initiative focuses on fostering strategic partnerships, developing critical infrastructure, and implementing key regulatory reforms. By 2029, the plan aims to generate $ 2 billion in revenue, solidifying Sri Lanka’s position as a premier maritime hub in the Indian Ocean. Leveraging the nation’s membership in the International Council of Marine Industry Associations (ICOMIA) and its pivotal geographic location, this strategy aspires to make Sri Lanka a leader in maritime innovation and economic prosperity.
Sri Lanka’s maritime boat exports industry currently contributes 1.4% to the national GDP, valued at $ 78.5 million in 2023. The marine sector including fisheries and boat manufacturing sector provides direct employment to 115,000 individuals and supports another 100,000 through related industries. Notably, the boat manufacturing industry alone has generated export income exceeding $ 200 million from 2019 to 2023. This robust foundation, combined with Sri Lanka’s strategic location and expansive coastline, presents a unique opportunity for transformative growth.
Through structured development and enhanced international collaboration, the maritime sector is poised to become a key driver of economic expansion, positioning Sri Lanka as a pivotal player in the global maritime economy. The $ 2 billion revenue target by 2029 is the brainchild of CMISL’s strategic plan, focusing on the development of the marine industry to realise this ambitious goal.
At the heart of this transformation lies an innovative dual-use harbour development strategy. This approach involves upgrading twenty-one existing fisheries harbours to cater to both commercial fishing and marine tourism. Major ports like Galle and Trincomalee are slated for significant enhancements to boost their operational capacity and appeal. Additionally, regional harbours such as Beruwala, Mirissa, Point Pedro, and Kapparatota will undergo modernisation to ensure they meet the demands of a growing and evolving maritime industry. This strategic development aims to position Sri Lanka as a key maritime hub, fostering economic growth and supporting diverse marine activities.
The manufacturing sector, currently consisting of 55 local boatyards and eight specialised export-oriented manufacturers, requires urgent support to meet growing demands. One critical need is the development of slipway facilities in Negombo, Beruwala, and Welipatanwila. These areas house most of the inland boat and yacht manufacturing facilities, which lack direct access to slipways. Addressing this gap will streamline the transport of manufactured vessels from yards to launching points. Strategically located slipway facilities will bolster manufacturing operations and promote efficiency.
Additionally, infrastructure upgrades by the Road Development Authority (RDA) and Ceylon Electricity Board (CEB) are necessary. These include adjusting the height of overhead power lines and widening roads to facilitate the smooth transportation of boats and yachts.
The Government is urged to release the ship/boat lifting equipment currently available at Mutwal Fisheries Harbour, which is under the purview of the Ministry of Fisheries, for use by the private sector. As this is the only available Ship/Boat lift of its capacity, aside from the one at Colombo Dockyard (CDL), it holds significant potential to enhance boat and yacht repair activities. This will greatly benefit local manufacturers by providing them with the necessary infrastructure to efficiently repair their boats, thereby reducing downtime and costs. Leveraging this asset can substantially increase USD revenue for Sri Lanka. By repurposing this valuable resource, the government can support the growth of the marine and boat manufacturing industry, fostering economic development and strengthening the country’s position as a key player in the maritime sector.

OSL take:
Sri Lanka’s maritime industry is on a growth path while the country targets on becoming a marine hub in the South Asian region. The country’s strategic positioning in the Indian Ocean in close proximity to the international maritime lanes and the many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have also helped to push the growth recorded by the local maritime industry. The expanding maritime industry has presented many business/investment opportunities in the ports, shipping and logistics sectors. The opportunities also include the development of infrastructure and supplementary infrastructure facilities required by the maritime industry in-line with the increasing activities in the industry as well as achieving maritime hub status. The growing business potential in the maritime industry has also attracted foreign businesses/investors to explore opportunities in the industry. Local authorities have also realized the increasing potential in the ports and shipping sectors resulting in projects to develop the key ports located island wide. Apart from the direct business/investment opportunities, these development projects have also presented opportunities for foreign businesses/investors. With the target of becoming a maritime hub, the opportunities in Sri Lanka’s maritime industry would see a continuous expansion presenting many lucrative opportunities.

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Article Code : VBS/AT/20241025/Z_2

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