Banking
NDB supports SMEs in the Fisheries sector
View(s):Credit facilities of Rs.1.2 billion granted towards the industry
NDB with 30 years heritage of commitment towards SME development has assisted a large number of small and medium scale Fishermen and Fish Exporters in all parts of the country. Having understood the significance of the fishing industry and foreseen its limitless prospects, the bank has continuously extended its unwavering support via financial assistance to this sector amounting to around Rs.1.2 billion or 1.02% of NDB’s total current lending portfolio.
Significance of the fisheries sector
The fisheries sector plays an indispensable role in the economy of Sri Lanka contributing around 1.2% to the GDP. Fish products are important sources of animal protein, providing around 70% of the animal protein consumed in the country (Food Balance Sheet, Department of Census and Statistics).
The sector provides direct and indirect employment to around 650,000 people and is directly linked with the lives approximately 50% of the population residing in the coastal belt. Fisheries sector contribution to the total export earnings of the country is around 2.5%. Fish production in 2011 increased by 15.6 per cent to 444,830 metric tons. In 2011, all the provinces except Eastern Province showed an increase in catch supported by favorable weather conditions. The fisheries sector has a significant scope for increasing the contribution to the national economy through exploitation of the huge potential yet untapped.
The Unexploited Potential
Over the last ten years export of fish has remained less than 3% of total value of exports. Out of this, fresh & frozen fish account for about 81% while Crustaceans and Mollusks account for nearly 17% of total fish exports. The inadequacy of investment in fish processing and related activities has resulted in poor export performance.
High sea fishing /off shore fishing refers to fishing beyond the territorial waters extending up to Exclusive Economic Zone (EEZ) and beyond. Although the country has a narrow continental shelf with an extent of 30,000 Km2 (which is 5.8% of the country’s ocean area), Sri Lanka has an extensive sea area to engage in off shore/deep sea fishing activities.
High sea / off shore fishing segment of Sri Lanka is characterized with inadequate investments in technology and sophisticated, efficient equipment. On the other hand there is a need for introduction of the large sized and well equipped boats which are capable of exploiting deep sea resources. Thus the existing facilities such as storage, net and line hauling gear, safety and communication equipment etc. in the operating multi day fishing boats are not in a satisfactory condition.
NDB’s Contribution
NDB supports the industry by providing financial assistance to purchase boats, nets, line hauling gear, equipments etc. and to meet the capital expenditure by funding working capital needs to sustain ongoing projects. NDB is well equipped with an in-house Product Development Team that shares customized financial expertise coupled with industry know-how to empower the small and medium scale fishermen and exporters.
Having made the fishing industry a focal point in its lending agenda, NDB has developed several industry focused finance solutions to meet the specific needs of the sector. The Bank has also advanced its efforts to support the sector by developing a customized working Capital loan product for Fish exporters.
NDB is one of the fastest growing banks in the country with NDB Group having regional operations in Maldives and Bangladesh. The Bank offers a wide range of commercial banking services through its growing island-wide branch network, catering to an increasing customer base from all walks of life.
Through the combined synergies of the diverse constituents of the NDB Group, its customers have access to a full range of banking and financial services; including project finance, corporate banking, SME lending, retail banking, investment banking, stock brokering, wealth management and insurance solutions making NDB a truly Universal Bank.
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