Banking
Bank of Ceylon supporting Cluster based Shrimp farming projects in Sri Lanka
View(s):Brackish water shrimp farming has been the most lucrative commercial aquaculture activity in Sri Lanka since it started in the mid- 1980s. Although the industry initially emerged in the Eastern Province (Batticaloa District), it collapsed due to civil disturbances in the area. Subsequently, the industry saw a revival in North Western Province (NWP) during the 1980s resulting in a rapid growth in both farm extent and foreign exchange earnings. As a result, North Western coastal belt became the hub of the shrimp farming industry in Sri Lanka. By the end of 1999, an estimated total of 1300 prawn farms covering an area of 4500ha and 80 hatcheries with an annual capacity of 750 million post larvae had developed in the area. The industry recorded its peak economic performances in the year 2000 by earning Mn US $ 69.4 worth of foreign exchange for the total exported volume of 4,855 MTSri Lankan exporters have enjoyed a good market for their product over the past. Japan, U.S. and EU countries are the most important markets for Sri Lankan Shrimps.
The National aquaculture Development Authority of Sri Lanka (NAQDA) is the main government organization responsible for development of inland fisheries and aquaculture in Sri Lanka. It is anticipated that the revival of shrimp farming in Vakarai would support coastal community in the area as an alternative livelihood especially for the Tsunami and war affected people. It has prepared a zonal plan for the Batticaloa District. Under that, a project is to be implemented for operating shrimp farm complex on the basis of cluster farming system.
It is funded by International Fund for agricultural Development (IFAD). The pilot project at Vakarai involves 27 out grower farmers. King Aqua Services (Pvt) Ltd is the investor. This pilot project proposed to have 30 ponds where 3 ponds will maintain by the investor and 27 will be maintained by the out growers. The out growers were identified by NAQDA with the Assistance of Divisional Secretary in the area. Selected out growers has to establish and operate shrimp farming on the basis of cluster system where the cluster farming system in shrimp aquaculture is one of the most sustainable method being practiced in other countries to avoid the risk of disease outbreaks and also to increase productivity of the farming system.
For the construction of each pond, with an area of 1.3 Acres, it may cost around Rs 0.3 million. It was realistic that Tsunami affected people cannot bear such a cost. Bank of Ceylon- Bankers to the Nation as the nation’s leading bank gave the helping hand for them to establish such ponds. They will give finance for the out growers under a special loan scheme from Bank of Ceylon. This loan scheme was initiated to continue financing in order to improve food security and reduce poverty especially in rural areas by promoting market, driven and sustainable management of inland fisheries and aqua culture through resource development and quality improvement. Maximum repayment period of the loan is of 2 years. 4 equal installments are set for the repayment of the facility.
A press conference was held on 15th march 2013 at BOC Head office to give information regarding the project. BOC Product and Development Banking Deputy General Manager, Mr Senarath Bandara, Assistant General Manager, Mr W A C Tissera, BOC Eastern Province AGM Mr K P Anandanadeshan, Arear Manager (Batticaloa) Mr M J Prabaharan, Chairman NAQDA, Mr Jayantha Chandrasoma, Director General of NAQDA Mr Nimal Chadraratne, National Cordinator of IFAD Mr P Prathapasinghe and Investor of the project Mr S Thayabaran were present at the programme.
Few out growers were offered this special facility at the occasion to remark the launch of this special loan scheme.
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