Sri Lankan canned fish producers are seeking to remove the 18 percent VAT imposed on locally produced canned fish to ensure that low-income families have access to the cheapest source of protein to combat malnutrition among low-income families.
Domestic consumption of canned fish, which was around 300,000 cans per day two or three years ago, has now dropped to 200,000 cans.
“Canned fish is actually meant for the poorest people in Sri Lanka. It is one of the cheapest forms of protein available in this country. “Therefore, we urge the government to remove the VAT on canned fish as it is an essential commodity,” said Shiran Fernando, president of the Canned Fish Manufacturers Association of Sri Lanka (CFMASL), at a press conference in Colombo last Friday.
If the VAT is removed, the price of a can of canned fish could be reduced by about Rs. 50-80 per can, making it more affordable and accessible, especially for low-income families.
Fernando said that the World Health Organization has already warned that protein consumption among Sri Lankans is very low.
“This is of great importance in a country where malnutrition remains a serious problem. By making canned fish more accessible, the government can improve food security and nutrition among low-income communities, ensuring that millions of Sri Lankans have access to an affordable and nutritious source of protein.
Canned fish is 100 percent natural with no preservatives. There is no reason why consumption cannot increase,” he added.
Sri Lanka’s canned fish industry has the capacity to produce 500,000 cans per day, which is double the current consumption.
Meanwhile, Fernando urged the government to take steps to develop the infrastructure of the fisheries sector on the East Coast, including the operationalization of the Oluvil Fisheries Harbour, to realize the untapped potential of the East Coast.
“The government has promised to open the Oluvil Harbour, which will accommodate between 400 and 500 fishing boats There are a number of anchored there “You can stop. Then again, you’ll see more fish coming in from the east coast.
Right now, we’re fishing on the west coast, but the fish on the east coast are getting old and dying. “No one is catching them,” he stressed.
The move is expected to ensure a stable supply of fish throughout the year, strengthen production capabilities and secure long-term industry growth.
If the right kind of support is provided, CFMASL members are also keen to move into fish production in Maldives, which could further generate foreign exchange savings for the country.
Before the establishment of the local canned fish industry, the country spent US$79 million per year on importing canned fish.
The government banned the import of canned fish into the country about a year ago. However, Fernando pointed out that imported canned fish products were still on the shelves of retail stores and supermarkets, which showed that imported canned fish was entering the country on a large scale before the ban.
The local canned fish industry also plays a key role in sustaining local fishermen.
“In addition to the fact that before the canned fish industry in Sri Lanka started, we used a lot of foreign exchange for imports, fishermen in this country had good prices for their fish “The price was not available. Now, my association and I are buying a lot of fish from Sri Lanka at a very affordable price for the fishermen,” he added.
Fernando urged the government to continue supporting the industry, especially targeting markets like South Korea, as it focuses on exports.
“We are asking them to help us more in the future, where we will go into canned exports. That is our ultimate goal. “My association and I would really like to export canned fish in the future,” he said.
