Economy & Growth

Tariff reforms to ease bait fish imports for deep-sea fishing industry

The Cabinet of Ministers on Monday approved a set of targeted trade and tariff reforms aimed at addressing the critical shortage of bait fish required by the deep-sea fishing fleet, while safeguarding the interests of local fishing communities.

Accordingly, the Cabinet decided to introduce a new Harmonised System (HS) code specifically for the import of milk fish and to restrict such imports to registered fishing societies. In addition, a special trade tax of Rs. 180 per kilogram will be imposed on imported Wekkaya fish, replacing the existing tariff structure. From this tax, a concession of Rs. 130 per kilogram will be granted to fishing societies importing Wekkaya fish, effectively reducing their cost burden.

The decisions were taken after considering a proposal submitted by the Fisheries, Aquatic and Marine Resources Minister, in response to the operational challenges faced by the deep-sea fishing sector.

In Sri Lanka’s deep-sea fisheries, owners of multi-day fishing vessels primarily use long line fishing gear to harvest high-value tuna species. This method relies on bait fish such as milk fish, ribbon fish, flying fish and cuttlefish. Fish caught using long line gear are widely regarded as high quality and sustainably harvested, enabling them to command premium prices in international markets.

At present, around 2,200 multi-day fishing vessels operate with long line gear, collectively requiring an estimated 8,000 tons of bait fish annually. However, domestic production can supply only about 4,000 tons, leaving a substantial shortfall that directly affects fishing operations and export earnings.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa addressing the weekly post-Cabinet meeting media briefing noted that while plans are underway to develop local Milk fish production for bait purposes with private sector participation, interim measures are necessary to ensure the uninterrupted functioning of the industry.

“In this context, tariff relief on milk fish imports was approved until domestic production became sufficient to meet demand,” he added.

He said the new HS code, revised trade tax structure and targeted concessions as a balanced approach that supports deep-sea fishing activities, promotes sustainable harvesting methods, and channels benefits through registered fishing societies, while longer-term efforts focus on strengthening local bait fish production capacity.

Source: Daily FT