Multiday boats fetch major income share of fisheries industry
A small group of fishing boat owners and fish mudalalis (wholesale fish traders) are getting a major share of the income although Sri Lanka’s fisheries industry contributes almost 2 per cent of GDP to the country’s economy, official report revealed.
After deducting all operating expenses, the income is distributed among the owners of craft and gear, and fishermen providing labour. If the boat owner also owns the gear, he can acquire 2/3 of the income.
Wholesale fish traders use to collect another slice of income by selling the catch of fish to retail traders and other buyers.
Around 5000 multiday fishing trawler owners are receiving the highest income of the industry and the majority of over 50,000 small boat owners earn less income, the National Aquatic Research Agency’s (NARA) fisheries outlook report divulged.
The annual net profit of the owner of a 28-32ft multiday fishing boat is Rs 2.4 million, a 33-40ft trawler Rs. 4 million and 41-60 ft trawler Rs.3.9 million and the net profit of a fiberglass boat with an outboard engine (40 – 60 hp or over) is around Rs. 400,000, NARA data showed.
The highest net profit of Rs.10.3 million is derived from a multi-day boat (IMUL). The total profit of around 5000 owners of such multi-day boats is over Rs. 50 billion per annum.
However the income of those engaged in the fisheries sector is exempt from income tax; Finance Ministry sourced said adding that such high income earners should voluntarily comply by opening tax files at the Inland Revenue Department.
According to the findings of this study all vessels groups operating in the deep sea fisheries have earned net profit indicating that the fishing operations are profitable.
The highest net profit was earned by the 35 to 39 ft vessel group followed by the 28 to 34 ft group. The lowest net profit was earned by the 44 ft vessel group.
This sector directly and indirectly employs around 560,000 people, provide a livelihood for 2.7 million people and generate foreign exchange and produce animal protein.