Fuel subsidy in sri lanka fisheries: data analysis and possible improvements

Abstract

Fisheries subsidy is defined as direct or indirect financial assistance to the fishing sector from the government or public organisations. In 2012 and 2013, the Sri Lankan government issued fuel subsidy to motorised fishing vessels due to high fuel prices. Non-motorized fishing vessels owners did not receive the subsidy. This study covers the impacts of fuel subsidy in Sri Lanka coastal fishery, no previous study were found with similar analyses. This project aims to provide such study, the paper is divided into three parts: Firstly, evaluation of the impact of fuel subsidy on fishing effort and vessels profit in Jaffna coastal fisheries in Sri Lanka. Secondly, asses quality of Sri Lanka coastal fisheries data as input to fuel subsidy methods. Thirdly, identify suitable ways to improve data quality and estimate the cost of modification. Six different types of fishing vessels are engaged in fishing activities in Sri Lanka marine fisheries sector; four types of motorised fishing vessels and two types of non-motorized fishing vessels. For the evaluation, monthly coastal fisheries data were collected from three landing sites from the Department of Fisheries in Jaffna. Suitable methods for the evaluation were obtained by reviewing the literature of fuel subsidy in the fisheries sector. Analyses of available data in Sri Lanka coastal fisheries reveal the current data not to be sufficient as input to fuel subsidy methods. The number of vessel groups was skewed from one period to another (shifted), the catch by landing sites could not be separated by fishing vessels, and the data of fishing cost was missing (i.e. fishing hours and amount of fuel consumption). As a recommendation, the author suggests three data collection methods to improve the data quality as a base to the scientific decision in the coastal fisheries. Recommended methods were grouped by the technology needed. The advanced complete enumeration is the most technological method, it is designed to monitor the fishing vessels, fishing activities and landing sites with 24 hours surveillance. The complete enumeration data collection method is designed to monitor the landing site only with 24 hours of surveillance. In both methods, data will be collected from all the fishing boats in the landing site. The stratified sampling method is designed to collect a number of fishing vessels from a landing site. These three methods vary in human resources, financial resources and technologies facilities. High quality data can be obtained from complete enumeration and lower quality data from the stratified sampling method. The complete enumeration methods are not economically feasible due to a large number of landing sites and lack of infrastructure in Sri Lanka coastal fisheries. The author recommends the data collection methods in Sri Lanka coastal fisheries to be reinforced to fully evaluate the effects of governmental support to the fishing sector. The stratified sampling method was seen to be the most likely collection method, as it is most suitable to current infrastructure in Sri Lanka coastal fisheries