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As Indian trawlers steal Sri Lankan fish, Chinese sea cucumber firm offers a lifeline

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  • Indian boats have been illegally poaching in Sri Lanka’s waters, taking advantage of the country’s economic crisis and struggling fishermen
  • Now a Beijing-owned venture has been helping them to cultivate sea cucumbers instead, to be exported to mainland China, Hong Kong and Taiwan

Sonia Sarkar

At 7am, Velupillai Rasaratnam, pushes his 15-feet long wooden boat closer to the Karainagar shore with the help of a younger fisherman in Sri Lanka’s war-torn Northern Province.

Wearing a black T-shirt and red shorts, the 70-year-old rows for around an hour, catching a few grey mullets that he plans to sell for 700 Sri Lankan rupees (US$2) at a local fish auction.

An hour is as far as his tired arms can take him. And as Sri Lanka reels from an acute economic crisis, it is increasingly clear that fishermen like Rasaratnam have borne the brunt of major fuel shortages.

With the price of kerosene quadrupling to 340 rupees (US$0.93) per litre, “I could not take my motorised boat to sea. Therefore, going too far wasn’t possible”, Rasaratnam said, adding that he goes fishing just twice a week these days.

Before the country went bankrupt, he used to go out every day to catch about 5kg of fish that earned his family of five around 5,000 rupees (US$13.89).

But kerosene was a scarce commodity even before the price hike in August, forcing many fishermen to buy it at 1,500 rupees (US$4.17) on the black market.

The availability and cost of fuel are not the only worrying issues fishermen are facing. In the last two decades more Indian boats have been making their way to Sri Lanka’s territorial waters to fish there, illegally.

“While we are confined to our homes due to a lack of kerosene, Indian fishermen are taking away all our resources,” said Rasaratnam.

Illegal fishing

Fishermen from India’s southern Tamil Nadu and Sri Lanka’s Northern Province are legally allowed to fish in the Palk Strait, a narrow strip of water between the two countries.

Three months ago, a representative of fishermen in Northern Province’s Mannar district appealed to Tamil Nadu’s chief minister to stop Indian fishermen from poaching in its smaller neighbour’s waters, especially at a time Sri Lanka is experiencing an economic crisis.

But that call went ignored. Last month, the Sri Lankan navy arrested at least 16 Indians for illegal fishing after they intruded into the island nation’s waters.

Kandasami Rajachandran, president of the Ambal Fishermen’s Cooperative in Karainagar, said that since the arrival of Indian trawlers, Sri Lankan fishers have for the past decade been bringing back just one basket of fish – weighing barely a kilo or two – whereas they used to return with six to eight earlier.

The foreign trawlers usually take away many kinds of marine life, including needlefish, emperor fish and prawns.

Rajachandran said the biggest catch that day was three stingrays weighing about 26kg each. “But we used to get much bigger stingrays earlier, now they are taken away by the Indian trawlers.”

The trawlers began intruding into Sri Lankan waters in 2002, he said, when fishermen in the north were banned from fishing as civil war raged between armed Tamil separatists and the Sri Lankan army.

Their livelihoods were further affected by the devastating tsunami that hit the Indian Ocean in 2004, he added.

Sri Lankan fisherman Thankarasa Prakash. Photo: Sonia Sarkar

Thankarasa Prakash, 40, another fisherman, who has often seen Indian trawlers near Karainagar, thinks his government has not addressed the problems caused by them because the Sri Lankans whose livelihoods are affected are mostly Tamils, an ethnic minority in the Sinhalese-majority country.

However, Sri Lanka’s fisheries minister Douglas Devananda, a Tamil politician, said the government had made several attempts to curb Indian fishing, but efforts had failed.

A new lifeline?

With the backdrop thus set, a Chinese company has stepped into the breach.

More than 1,000 fishermen in three northern districts – Mannar, Kilinochchi and Jaffna – are now cultivating sea cucumbers, a marine creature often seen as a delicacy in Chinese cuisine, as part of a venture between Gui Lan Hatchery and Sri Lanka’s national aquatic development authority.

The company, started in 2015, is run by four directors from mainland China and Taiwan.

Devananda said he was also encouraging fishermen to explore other “alternative sources of livelihood” like cultivation of seaweed and sea bass too.

Steven Gong, Gui Lan’s Taiwanese co-owner and administrative executive who has lived in Sri Lanka for more than 30 years and has three children with his Tamil wife, noted that the start-up costs for such operations were low, with an initial investment of 500,000 rupees (US$1,369) per acre for setting up infrastructure lasting five years.

Fishermen also get financial help from the International Labour Organization to buy juveniles from the hatchery.

Gong said his firm provided cultivators 60-day-old sea cucumbers weighing 1 gram for 60 rupees each (US$0.16).

“The farmers, including some fishermen, nurse the juveniles for 10 months until each weighs about 250 grams, then they are sold for 1500 rupees (US$4) to exporters,” Gong said. “But [those] cultivators who nurse the sea cucumbers for a few more months till they weigh 500g each, sell them for about 3,000 rupees (US$8).”

In 2021, Sri Lanka exported about 336 tonnes of sea cucumbers – prized for their soft interiors and chewy skin – to Singapore, mainland China, Hong Kong and Taiwan.

The government this year approved a large-scale commercial sea cucumber project of over 5,000 acres in the country’s northern and eastern districts.

A bucket of sea cucumbers in Sri Lanka. Photo: Handout

M Thivagaran, president of the Jaffna Sea Cucumber Cultivators’ Association, said sea cucumber cultivation had given a ray of hope to fishermen suffering severe losses.

“Annually, a sea cucumber cultivator can earn a guaranteed sum of 1 million rupees (US$2,830), but a fisherman earns barely 480,000 (US$1,333), which is not guaranteed in the current economic scenario and at a time when Indian trawlers look unstoppable,” said Thivagaran. He said 300 fishermen in Jaffna, the capital of the Northern Province, had switched to sea cucumber cultivation since last year.

India-China rivalry

Critics have also raised concerns about the sea cucumber initiative as it comes at a time when China – one of Sri Lanka’s largest creditors with at least US$3.5 billion of outstanding loans – is being partly blamed for pushing the nation into a debt crisis.

Traditionally, India is seen to be closer to Sri Lanka’s north, largely because of the shared Tamil ethnicity, but China has also been making inroads in the region as both superpowers compete to gain a strategic edge over the island nation.

Last year, China’s ambassador in Sri Lanka, Qi Zhenhong, distributed rations to fishermen affected by Indian trawlers. In May this year, at the peak of the economic crisis, India sent 15,000 litres of kerosene to northern Sri Lanka’s fishermen.

Jaffna-based economist Vivekanandan Niranjan said Sri Lanka was allowing the India-China “geopolitical game” to play out in its territory because of the lack of political and economic stability.

Niranjan added that New Delhi and Beijing will use the island nation to settle scores with each other till it returns to normalcy.

“But both countries must understand that Sri Lankans are worried if the two are capitalising on the island’s current instability and using its territory as the playground,” he said.

South China Morning Post

Rs. 10,000 allowance for families suffering from nutritional deficiency

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Families suffering from nutritional deficiency triggered by the ongoing economic crisis will be given an allowance of Rs. 10,000, following a decision by the Finance Ministry. The allowance, accordingly, will be given from this month to the rest of the year.

61,000 families are said to have qualified to this benefit.

Funds received from the World Food Programme (WFP) have been allocated for this purpose, said Finance Secretary K.M.M. Siriwardena.

MIAP

Liz Truss new Prime Minister of UK!

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Liz Truss has defeated Rishi Sunak to be the new Prime Minister of Britain.

The result was announced at 12:30 pm (5 pm IST), after foreign minister Truss and her rival, former finance minister Rishi Sunak, spent the summer rallying support among the Conservative Party members who cast the final vote.

Long the front-runner in the race to replace Johnson, Truss, if appointed, will become the Conservatives’ fourth prime minister since a 2015 election. Over that period the country has been buffeted from crisis to crisis, and now faces what is forecast to be a long recession triggered by sky-rocketing inflation which hit 10.1 per cent in July.

The 47-year-old has consistently been ahead of 42-year-old Mr Sunak in polling among the estimated 200,000 Tory members eligible to vote.

Boris Johnson was forced to announce his resignation in July after months of scandal and he will travel to Scotland to meet Queen Elizabeth on Tuesday to officially tender his resignation. His successor will follow him and be asked to form a government.

NDTV

Billionaire Chamath Palihapitiya Says One Crypto Sector Is in Classic Bubble Cycle

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Billionaire investor and tech entrepreneur Chamath Palihapitiya says that one crypto sector could be in the midst of a classic hype cycle.

In a new All-In podcast, the Social Capital CEO addresses the massive drop off of trading volume in the non-fungible token (NFT) market.

Palihapitiya uses the example of Burning Man and Coachella, two large-scale music festivals that aim to be unique but perhaps end up being mostly the same thing.

The billionaire compares the two music festivals with NFTs and the general art market.

“I do think that there’s this thing – the Burning Man/Coachella example is the best way to describe this. A lot of these things are the same, but when a few people approach something early, they’re too insecure to admit that it’s the same as something else and so they spend a lot of time trying to tell you a narrative about why it’s totally different. The Buffett example would be the quote, ‘Whenever somebody tells you this time is different, it’s probably not that different.’ Or the other quote that’s well-worn in history is, ‘Things don’t necessarily repeat in history but they rhyme.’ 

All of this is trying to say, other than fundamental leaps in science, there’s not a lot of stuff that’s new in the world. We are repeating things over and over, and one of the things we repeat is the social capital that you get from having certain choices and then getting other people to validate those choices because you want to feel like you’re worthwhile. And this happened in NFTs, and I’m sure in the first phase in different movements in art, that also happened. It’s probably happened in a bunch of other markets as well, so these things are more similar than they are different.

Coachella and Burning man: the same. NFTs and part of the art market: the same. Everybody that runs to you with why it’s so different, I would just have a grain of salt and say, ‘It doesn’t need to be different, you can just enjoy it because you think it’s cool.’”

According to DappRadar, trading volume on leading NFT marketplace OpenSea hit a one-year low earlier last week.

The Daily HODL

LITRO declares news gas prices. Price of a 12.5 kg cylinder slashed by Rs. 113

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LITRO Gas has released its revised lp gas prices, effective from midnight today (05).

Accordingly, the price of a 12.5 kg domestic gas cylinder has been slashed by Rs. 113, making its price drop from Rs. 4664 to Rs. 4551.

The price of a 05 kg cylinder has been slashed by Rs. 42, dropping the price from Rs. 1872 to Rs. 1827, and the price of a 2.3 kg cylinder by Rs. 21, from Rs. 869 to Rs. 848.

The state-run lp gas distributor which had been incurring losses has once again begun to earn profits since July, and within August alone it incurred a profit of Rs. 700 million.

The prices have been slashed in consideration of the profits and the drop in global gas prices.

MIAP

Dates set for Grade 05 Scholarship Exam and ALs

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The Grade 05 Scholarship Examination of this year will be held on December 05, declared the Department of Examinations.

The Department also declared that the 2022 GCE Advanced Level Examination will commence from December 05.

However, no final decision has been made on the dates for the GCE Ordinary Level Examination.

MIAP

No discussion on GR being given titles: Ruwan Wijewardena

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President Ranil Wickremesinghe held no negotiation pertaining to former President Gotabaya Rajapaksa being appointed as the Prime Minister, said United National Party (UNP) Deputy Leader Ruwan Wijewardena, assuring that neither the President nor his Party makes any intervention on the ex head of state’s political affairs.

Wijewardena made this observation yesterday (04) in response to reporters on the speculation that the ousted Sri Lankan President being given a top government position upon his return to Sri Lanka.

The UNP Deputy Leader also said that the President intervened to provide the necessary facilities and security for ex President Rajapaksa to return to the island based on the recommendations by the Human Rights Commission of Sri Lanka (HRCSL), and that he, accordingly, has received all the facilities entitled to a former head of state.

A group of Sri Lanka Podujana Peramuna (SLPP) MPs made the resolution on Mr. Rajapaksa being appointed as the Prime Minister, however, certain members of the Rajapaksa family are of the opinion that the ex President shall not engage in politics further.

MIAP

Paris Club ready to start the Sri Lanka debt restructuring process

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The Paris Club has said that it is ready to start the debt treatment process of Sri Lanka following the conclusion of the Staff-Level Agreement with the International Monetary Fund (IMF) last week.

The Paris Club in a statement also reiterated its willingness to coordinate with non-Paris Club official bilateral creditors to provide the necessary financing assurances in a timely manner and ensure fair burden sharing, as already proposed to the largest other official bilateral creditors.

“The Paris Club remains at the disposal of Sri Lanka authorities and non-Paris official bilateral creditors to further discuss the next steps of the debt treatment process,” it said.

The statement said Paris Club members welcome the SLA between the Sri Lankan Government and the IMF for a 48-month arrangement under the Extended Fund Facility worth $ 2.9 billion. “This agreement represents an important step to restore macroeconomic stability and public debt sustainability,” the statement added.

The Paris Club was formed in 1956 and is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

Paris Club members are Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, United Kingdom and United States. India has been an observer state since 2019.

Sri Lanka’s foreign currency bilateral debt as at end 2021 was $ 9.6 billion or 11% of GDP as against $ 20 billion held by private creditors. Guaranteed SOEs bilateral debt was $ 300 million and those held by the Central Bank of Sri Lanka was $ 1.8 billion. Of the Paris Club members, the giant share is held by Japan (32%) followed by Korea 3%, Germany and France 2% each, USA and Spain 1% each.

Travel advisories exert adverse impact on tourist arrivals in August

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Sri Lanka could achieve the set target of one million tourists, whilst earning over $ 1.75 billion by year-end despite the the drop in tourist arrivals in August owing to adverse travel advisories by some foreign countries Sri Lanka Tourism Development Authority Chairman Priantha Fernando disclosed.

The adverse travel advisories imposed by multiple countries against Sri Lanka have severely impacted numbers, as August becomes the third lowest arrivals month for the year so far.

In August, arrivals fell by 20.2% to 37,760 from 47,293 in July, the shattering industry hopes to exceed the year-to-date half-a-million mark.

May recorded the lowest tourist arrivals with 30,207, whilst the second lowest inflow was in June with 32,856.

Arrivals in the first eight months amounted to 496,430 (as against 5,040 in COVID-hit August of 2021), a welcome development for the triple-hit tourism industry, but performance is still down by 81% compared to the same period in pre-COVID 2018.

The latest data released by the Sri Lanka Tourism Development Authority (SLTDA) showed the daily average arrivals have dropped to 1,218 from 1,526 in July. The highest daily average arrivals were in March with over 3,600, but the numbers kept crumbling as ramifications of the economic crisis and political upheaval.

The UK topped the tourist traffic to Sri Lanka with 18% or 6,776 tourists despite the adverse travel advisories, followed by India with 5,340 tourists (14%) and Germany with 3,251 (9%).
India remains strong as the top tourist source market for Sri Lanka YTD with cumulative number of arrivals at 80,132 followed by UK 65,655, Russia with 49,747, Germany 40,359, France 28,235, Canada 19,056, Australia 18,412, US 14,259, Ukraine 13,908, and Poland 13,334.

Earnings from tourism in the first seven months were at $ 824.9 million, as against $ 50.4 million in the corresponding period of 2021, as per Central Bank provisional data.

In July, tourism earnings were estimated at $ 85.1 million, compared to $ 6.3 million a year ago.

Despite the multiple challenges, Sri Lanka’s tourism industry looks to be in high season, as they ramp up efforts to achieve the set target of one million arrivals and boost foreign exchange inflows to overcome the economic woes.

President RW needs at least 175 MPs’ support to build SL

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Chairman of the United National Party (UNP) MP Vajira Abeywardena speaking to a briefing called in by the Party yesterday (04) said President Ranil Wickremesinghe needs each and everyone’s support to build the country.

“Mr. Ranil Wickremesinghe has taken over the stewardship of the nation. So, he continues to ask for everyone’s support in this regard. To recover this country from where it fell, at least 175 MPs’ support is needed, he said over and over again. What is being done is uniting all compatible and incompatible political parties for a national programme. Such a programme cannot be implemented overnight,” he said.

MIAP