Fuel subsidy lifeline for Sri Lanka’s fishermen
The new administration has swiftly launched a fuel subsidy initiative aimed at revitalising the struggling fishing industry in Sri Lanka, which has faced economic challenges since 2019.
This policy is focused on developing and managing the fishing sector in a sustainable and environmentally responsible way, aiming to boost fish production, improve accessibility for consumers at reasonable prices, and enhance the livelihoods of those working within the industry.
A local fish market.
Under the scheme, fishermen will receive monthly fuel subsidies for both multi-day and one-day fishing vessels.
Similar to subsidies offered to the agricultural sector, the financial support will be directly deposited into the bank accounts of fishermen, said sources at the Finance Ministry.
Current projections indicate that Sri Lanka’s fish production will rise steadily, with expectations to reach around 690,000 metric tonnes by 2028, up from approximately 330,000 metric tonnes in 2023.
Fish consumption in Sri Lanka however is expected to decline slightly
On October 1, the President directed the Treasury to implement the fuel subsidy for the fishing community, aiming to enhance the fishing industry and reduce production costs for fishermen.
Although an earlier cabinet meeting of the former government had approved remedial measures due to rising fuel prices, the decision was not executed during the presidential election period.
However, cabinet spokesman Minister Vijitha Herath confirmed that the Election Commission approved the proposal, establishing a maximum concession price of Rs. 250 for diesel and Rs. 150 for kerosene.
The new Cabinet of Ministers has approved the President’s proposal to provide fuel concessions for six months, commencing October 1, 2024.
Vessel owners will receive a subsidy of Rs. 25 per litre of diesel, with a cap of Rs. 300,000 per month. For kerosene users, the subsidy will also be Rs. 25 per litre, limited to 15 litres per day for up to 25 working days each month.
This programme ensures that fishermen benefit from a 7.5 per cent concession on diesel and a 12.5 per cent concession on kerosene, with adjustments based on the fuel price formula.
While this initiative is designed to relieve the financial pressure on small and medium-scale fishermen, some fishermen have voiced concerns about not receiving direct benefits from this scheme. Many urge the government to lower overall fuel prices for the fishing sector or to adjust the subsidy so it directly reaches those in need.
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