A STUDY REPORT ON Implicationsof Blue Economy IN SRI LANKA BY

NAFSO – Sri LANKA & SNEHA - INDIA

RESEARCH TEAMA.Gandimathi, JESU RETHINAM, JONES THOMAS SPARTEGUS

AND SRIDHAR RAO

What is Blue Economy in Sri Lanka• The ecosystems of the Ocean and Coast to be opened

up by coastal nations to private investors in sustainableway through ecosystem integrity to fulfil food security,decent livelihoods and economic growth.

Our Assumptions❖Ecological externalities such as loss of biodiversity

as an inevitable consequence of exploitation ofcoastal and marine resources.

❖Exclusion of Marine and Coastal Communities fromtheir habitats, governance and user rights on marineand coastal commons, and resulting in loss oflivelihoods by allowing oceans and coasts as openaccess systems.

❖Enforcement of Maritime Security as a deliberatestrategy of blue economy towards increasing globalgovernance.

Adoption Of Blue Green Economy

2016

Formal Launch Sri Lanka

2014

Abu Dhabi Convention IORA

2013

Nairobi Convention SIDS

2013

Preparatory Meet SIDS at Seychelles

Focal Point

•Efforts to enhance management

mechanisms that minimize and

mitigate unsustainable exploitation

of marine resources.

•State will entail a fundamental,

systemic change in policy, legal

and governance frameworks.

•Enabling mechanisms include

technology transfer, capacity

building, targeted streamlined

financing mechanisms, including

debt for nature with a scientific

approach.

Salient Features Of Blue-green Economy

• Clean industries engaged in low carbon emissionproduction.

• Watershed restorative, health preserving organicagriculture for food security.

• Renewable energy generation, low losstransmission and energy storage utility sector.

• Green LEED standard construction industry

• Creating an alternative energy:

• Creating Green Cities and Villages that arehealthy and safe to live.

• Blue Green economy workforce.

• Unlocking the value of Ocean’s living resources sustainably.

• Research on biodiversity rich marine biological resources to

discover new medicines and products.

• Exploring ocean mineral & seabed resources to establish high

technology “clean industries” for global market.

• Establishing low carbon footprint port facilities

• Developing a conservation-oriented tourism industry using

renewable energy resources in the coast and oceans.

• Promoting coastal recreational, beach, game fishing and water

Sport activities

• Opening up maritime archaeology and being the guardian of the

Indian ocean

• Pursuing new global opportunities in ocean energy

• Developing coastal area protection measures and upgrade our

coastal area habitat infrastructure

Mega Policies Related Projects Under Blue EconomyMega Polis Projects

National Physical Plan 2010-2030

Construction of Mega Cities, Industrial

Zones, Super High Ways, Air Ports,

Harbours in coastal areas by converting

mangrove forest, Beaches and lagoons

for Industrial Development and Tourism

as a Smart Nation.

Nearly 150 Military runs shops,

restaurants and holiday bungalows

along A9 Road and Passikudah Beach.

Megapolis Development Program

Jaffna, Trincomalee, Kandy, Galle and

Hambantota are being promoted as

Metropolitan cities by conversion of

coastal and forest lands

Land Administration Reforms It includes changes in the policy, Deregulation

of Land Acquisition Act and Rights under

Property Act.

Labour Law Reform Labour Laws are deregulated and legal

entitlements will be rested with the employers.

Restructuring Social Safety Net ProgramsEmployers Provident Fund and Employers

Trust Fund, Public Servants Pension Scheme

were diverted for development

Boosting Technology Acquisition &DigitizationDigital and network infrastructure

Digital Skills, Skills development and Digital

Literacy;

Data Protection and Cyber security

Leadership reforming and reinventing laws,

regulation and process

VISION - 25

Trade and Security Agreements for Sri Lanka

• Millennium Challenge Compact (MCC) for a grant of $480million to develop Transport Corridors and Land Bank forColombo-Trincomalee corridor.

• Acquisition Cross-Servicing Agreement (ACSA) and theproposed Status of Forces Agreement (SOFA) as militaryagreement between Sri Lanka and the US.

• Sri Lanka-Singapore Free Trade Agreement (SLSFTA) of2018 with deregulations of investment and labour laws andpermission for garbage waste from Singapore.

• M0U on Trade and Economic Cooperation in May 2013 andFree Trade Agreement negotiation in 2014 between China andSri Lanka.

• Numerous Military agreements between Sri Lanka- China andSri Lanka-India. India’s overall fund commitment stands closeto $3 billion, out of which around $560 million are in grants$50m grant for SL military in 2019.

• Trilateral Maritime Security Cooperation with Sri Lanka,

India and the Maldives.

• IORA Mauritius Agreement signed by Sri Lanka with 21

countries in 2015.

• Sri Lanka signed Xiamen Declaration for BE, which was

supported by FAO and Convention for Trade in

Endangered Species (CITES) involving 13 important

fishing countries.

• The EU, in January 2015, imposed a ban on Sri Lanka’s

fish exports, with official reason of engaging in IUU

fishing activities, which was revoked in June 2016 after

the enactment of new fisheries laws and policies in Sri

Lanka.

The Components Of The Blue Economy Taken For The Study

• Port City Project in Colombo

• Chundikulam National Park – Elephant Pass

• Fisheries Sectors in Jaffna and Negambo

oWomen Fish Workers around NegambooLagoon

oKuttiduwa Fish Workers

• Highway Corridor (A9) from Negambo to Jaffna(Mullivaikal)

CHUNDIKULAM NATIONAL PARK COLOMBO PORT CITY

MULTI DAY BOAT BY SOUTHERN FISHERSA9 HIGHWAY KANDY TO JAFFNA

SSF IN POINT PEDRO

DRY FISH VENDORS IN NEGAMBOO KUTTIDUWA FISH WORKERS

FISHERIES–NORTH – OBSERVATIONSNorthern Region has traditional fishing communities.

There are at least 1,337 fishing villages in the marine sector, with 1,289 in the inland

sector.

Year Changes in the Fishing Sector

1950 Kattumarans with Cotton Nets replaced by Nylon Nets from Japan.

1975 Mechanized Boats and Trawlers were introduced from Norway.

1983 Before 1983 contributed 43% of ’s Fishing Economy. Afterwards

restrictions imposed by Navy, Tigers, and also Indian Peace Keeping

Force(IPKF).

2004 Northern coast was devastated by Tsunami which further

marginalized the coastal communities.

2009 Slow and gradual recovery. At present, Northern Province contributes

23%

Militarisation of the coasts, service delivery and governance are the major

issues being experienced by the people of the Northern Province.

IMPLICATIONS

•The construction of Infrastructure projects like Restaurants, Resorts, Desalination

Plants and Naval Base along the A9 Road have displaced the coastal communities and

many of them are settled in Internally Displaced Persons (IDP) camps and 82,000

Women Headed Families were worst victims of displacement where SSF are wage

laborers in other sectors.

•Deep-sea and High Sea commercial fishing vessels from Southern Province (multiday

boats) and Indian trawlers are not regulated by the State .

•Promotion of Chundikulam National Park has displaced people in and around Jaffna

lagoon who were dependent on fishing.

The following projects are also depriving the communities access to livelihood

Onshore Wind mills – Anairavu and Mannar by Malaysian, Chinese, Indian companies.

Army’s coastal tourism projects

Paruthithurai commercial port (Point Pedro)

Offshore oil exploration in Pesalai and Trincomalee

Industrial shrimp farming and Salt harvesting in Kilinochi

Check dams preventing freshwater meeting the sea

Inadequate social security measures for fishers

FISHERIES –SOUTHERN PROVINCE OBSERVATIONS

Shift in Fisheries (Traditional to Commercial)Kattumarans and Beach siene were the main gears in 1950s. Then, the Long Plank

Boats with Outboard Motors were introduced in 1960s, followed by the

introduction of single-day Small Mechanised Boats with Inboard Engines.

Some fishers improved the Small Mechanised Boats with cold storage facilities and

used them for multiday fishing. With the support of Norway and Japan, multiday

long line and gillnetting, and also Trawling were introduced.

Changes In Crafts And Gears

• SSF started using Motorised and Mechanised with the minimal non-motorised

boats.

• Multiday Boats with 45 feet got engaged in fishing in n waters mostly in Mannar,

Trincomalee, and Mullativu.

• Multiday Boats above 45 feet were fishing in the High Seas as well as Territorial

Waters of Red Sea, Diego Garcia and other regions in Indian Ocean Rim.

IMPLICATIONS

• The Colombo Port City Project has already resulted in massive

destruction of large scale to coastal ecology and near-shore fishery

resources and habitats of fishing communities. SSF no longer have adequate

fish catch.

• The Southern Coast is facing Sea Erosion, Sea Water Intrusion, Coastal

Flooding and vulnerable to natural hazards.

• The EU Fish Trade Ban in the name of regulation had forced Sri Lanka to

bring in “sustainable fishing”.

• High-Sea multi day Deep-sea boats are under Vessel Monitoring Systems

regime. Sea Food Exporters Association are trying for MSC certification.

• Foreign EU vessels from Seychelles and Mauritius were allowed to fish

in the same areas such as Southern fishing fleets.

• The Deep-sea vessels were employing the Sri Lankan fishers as

labourers.

• The SL Government was constructing fishing harbours for landing the

Multi Day Deep-sea boats in the north supported by Asian Development

Bank (ADB), infringing on northern fisher’s rights.

ISSUES AND CONCERNS IN FISHERIES SECTOR

• Adoption of Neo-Liberal Economy in 1977 and B.E in 2016.

• Deregulation of Labour laws, Environment laws, Social Security Policies

• Shift from Production to Trade and Service sector

• 100% equity for Foreign Direct Investment

• Investing Public Funds (EPF and Pension Funds) in Mega Projects

• Conversion of Inland water bodies in Northern Region for industrialaquaculture – (drinking water sources, Irrigation Channels, Lagoons,Reservoirs).

• Destruction of Traditional Pathways, Waters Ways, Flood plains andextraction of ground water for intensive shrimp farming resulting indrying up of surface water bodies as resulted in acute water crisis, healthhazards like kidney stone and waterborne communicable diseases in thenorth.

• Conversion of coastal lands into tourism, aquaculture, hotels,infrastructure and development projects, with the direct intervention ofmilitary and forced eviction of coastal communities.

ECOLOGICAL IMPICATIONS OF PORT CITY

• Loss of habitats and coastal lands of fishing communities from Negombo-

Pitipana coastal belt in Morawala, Udappuwa in Puttalam, Calido Beach in

Kalutara and the coastal belt in Mount Lavinia, Dehiwala and Ratmalana

due to sea erosion and the increasing vulnerability to stormy cycles and

Floods.

• In addition to Biodiversity loss (wildlife, agro-diversity), Food insecurity

(crop damage), Soil contamination, Large scale disturbance of hydro and

geological systems, Noise pollution, Soil erosion, Deforestation and loss of

vegetation cover in the terrestrial eco-system.

• Destruction of both terrestrial and coastal eco-system has resulted in

Displacement, Loss of livelihood, Social impacts on women, Land

dispossession, Loss of landscape/sense of place.

• Destruction of coral reefs and spawning grounds and habitats of fish, sea

bed weeds, mangroves and sea grass habitats due to sand mining on the sea

bed

• People may consume heavy metals via the food chain from detritus feeders

fauna by fishes .

Gender Implications of B.E Projects

• Commercial fishing and Industrial aquaculture has displacedWomen from the value chain and supply chain.

• Salinization of land and ground water resources and nonavailability of drinking water which adds to the work load ofwomen and serious health hazards like development of kidneystones.

• Conversion of coastal land for industrial and infrastructureprojects have pushed them from their original habitats. Manyof them are resorting to IDP camps, not by choice but byforced eviction without any compensation for loss of land andlivelihood.

• The women in IDP camp faces physical insecurity andeconomic insecurity. There is no adequate infrastructurefacilities including water, drainages and toilets.

• Exclusion of women fish workers in policies, legislations.

CONCLUSIONS

1. The deregulation of environmental laws, social security programmes andland reforms have promoted the financilization and commodification ofNatural Capital resources to the benefit of Global players and Corporates atthe cost of peoples habitat and livelihoods.

2. Blue Economy an extension of ongoing Neoliberalism is an accumulationstrategy of finance capital backed by the state promoting free markets andprivate corporates within and outside the country to the benefit of anemerging oligarchy and creating new forms of social exclusion and conflictamong the coastal and other marginalized communities.

3. Thus the assumptions made in the study is validated through the empiricalevidences from the implications of

• Industrialization of capture and culture fisheries leading to displacement oftraditional fishers

• Promotion of development projects (Port city project, A9 Highway corridor, )by the conversion of ocean and coastal commons

• Exclusion of women from supply and value chain

• Militarization of the coast by exercising control over developmentinterventions by the Army

These prove the process of externalization of ecological resources, exclusionof SSF and Women and enforcement of Military for the accumulation of Globalcapital and centralization of Governance at the National and Global level.

RECOMMENDATION

1. Constitutional Amendment must be ensured which must necessarily reflectnew perspectives on economic (right to life and livelihood) and socialrights, including environment and sustainable development.

2. Devolution of powers and funds to Northern Province and local self-governments should be ensured. Public discourse in the Parliament on theongoing major reforms should be facilitated for protecting the rightsensured in the article12 of the constitution which ensures right to equalityand protection for all.

3. In-depth research on the impact of port city projects, industrial fishing andaquaculture and tourism on the coastal, marine and terrestrial eco-systemsand their cumulative impact on the livelihoods, habitats of the fishingcommunities especially SSF and women.

4. Comprehensive cumulative impact study encompassing technical, socio-economic, environmental and financial aspects to be made for port cityproject.

5. Revisiting policies and legal provisions and the economic reforms to ensurethe inclusion of SSF and women fish workers by ensuring gender andenvironmental justice.

6. Reparation Packages to the victims of development to be ensured throughlegal measures.