Import of second-hand boats to Sri Lanka should be restricted
Danusha Marine Lanka (Pvt.) Ltd and Danusha Group of Companies Managing Director Sumithra Fernando said that the government should safeguard the local boatbuilding industry by restricting the import of used boats (fishing crafts and leisure crafts).
He alleged that Sri Lanka has become a dumping ground for second-hand boats, as no age restrictions are imposed.
He said that from 2018 to 2020, about 448 boats and yatches had been imported to Sri Lanka and drained the country of Rs.750 million in foreign exchange.
“Of these, 60 were types of craft that are manufactured in Sri Lanka. By operating derelict craft, the lives of fishermen and tourists were at risk,” he added.
He suggested that operators should consider quotations from the local boat builders before opting to import second-hand crafts.
Fernando said that although an import duty of 25 percent is imposed on the import of fishing boats, the importers under invoice deprive the government of revenue. He also said that heavy tariffs are levied for the import of certain types of essential raw materials used by the industry.
Fernando started building 18-foot fishing boats for the local market on a very small scale in 1989. The business has grown gradually and today 31 years later, Danusha Marine Lanka (Pvt.) Ltd has an annual turnover of around Rs.600 million and build close to 500 boats a year. The company boasts of four boat yards situated in Moratuwa and Payagala and is capable of building various types of boats from four to 24 meters in length.
Building boats to international specifications and standards, Danusha Marine has regular orders from clients in Holland, South Korea, the Seychelles, Madagascar, Tanzania and Mauritius.
In addition to building boats, today the company imports and distributes inboard motors and raw materials needed by the industry.
Fernando said that the other setbacks the company was facing were the government’s inability to provide suitable land in proximity to a launching facility and the complexity in obtaining approvals. He said that his boat yard in Payagala was about two and a half kilometres from the Beruwala fisheries harbour, the closest place a large boat could be launched.
He also mentioned of instances where foreign investors had backed out, due to the delays caused by corrupt officials.
He added that there were around 40 companies that build boats in Sri Lanka and more or less the grievances were common.