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SL’s canned fish producers say undercutting by importers has badly hit the industry
Calls for a level playing field
BY SURESH PERERA
Asserting that importers enjoy a competitive edge in Sri Lanka’s canned fish industry, beleaguered local producers called for a level playing field, saying they are “being pushed to the wall due to undercutting”.
The local manufacturers threw a lifeline to the troubled fisheries industry by procuring 700 metric tons of ‘Linna’ (Mackerel fish) in the backdrop of the drastic drop in fish consumption following the eruption of the Peliyagoda Covid-19 cluster, but questions are now being raised whether the move was viable as importers are one step ahead in terms of competitive pricing.
“How can Sri Lanka’s canned fish industry be developed when importers pay a duty of a negligible twenty five cents per kilo on the consignments they inject into the local market?”, asked Kamal Addaraarachchi, a member of the Canned Fish Producers’ Association of Sri Lanka.
This is ridiculous, he protested, adding that importers are given priority to the detriment of the local industry, which remains largely side-lined and fettered in its ambitious drive to boost the country’s economy.
With island-wide consumption at 250,000 cans per day, Sri Lanka imports canned fish worth Rs. 14.43 billion (US$ 78 million) annually. The products come largely from China, while Chile is also a source for procurement.
Though there are seven registered canned fish producing companies in Sri Lanka, only five are in active business, he said.
The local demand for canned fish has shot up as most people now avoid consumption of fish following the Peliyagoda corona outbreak. Canned fish is sold between Rs. 260-300 per 425g and small cans at Rs. 130-150.
However, with no effective price control mechanism coupled with the disruption in distribution, some traders have cashed in on the existing shortages to make a fast buck, consumers complained.
Unlike local producers, importers have no worries as they pay low duties and maintain a substantial margin so much so they can reduce as much as Rs. 25-50 per 425g can at any time and still make a profit, Addaraarachchi claimed.
The government should impose a cess on imported products to encourage local production, he emphasized.
He said that when procuring fish locally, there’s invariably 35% depreciation in terms of quality and another 15% is rejected due to poor handling. The fish that’s turned down is later sold as dry fish by suppliers, which is an unhealthy practice, he noted.
The high rate of rejection is due to non availability of facilities for fishermen to preserve their catch, which is an area that needs priority attention of the authorities to make maximum use of the country’s marine resources, he further said.
“At times, we import frozen fish from Japan, China and Chile to meet production demands”, he continued.
Asked whether the local industry has the capacity to meet the country’s annual demand for canned fish, Addaraarachchi outlined that imports should be gradually phased out until producers geared themselves to enhance production capacity.
Initially, if a stock of 150,000 cans is imported on a daily basis, this can be trimmed to 100,000 in a process that allows local production to systematically meet the shortfall. At the end of the day, the country will be saving a substantial volume of foreign exchange, he explained.
“We don’t want government subsidies. What we are asking for are adequate bank facilities to build up the industry. Within three months, we will be self-sufficient in canned fish and within a year even have excess stocks for export”, he added.
Addaraarachchi said the Association discussed their grievances with Trade Minister Bandula Gunawardena, who assured that the issues pertaining to duties (on imports) will be taken up with the Prime Minister and the Finance Ministry.
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PCoI on Easter Sunday attacks:
By Shamindra Ferdinando
Attorney General Dappula de Livera, PC is not bound by recommendations made by the Presidential Commission of Inquiry (P CoI) into the 2019 Easter Sunday carnage, or presidential directives in that regard, according to authoritative sources.
They said that the AG couldn’t under any circumstances initiate legal proceedings until he had received the full PCoI report.
President Gotabaya Rajapaksa received the PCoI report on Feb 1. The President’s Office delivered a set of PCoI reports to Speaker Mahinda Yapa Abeywardena on Feb 23, a day after the report was presented to the cabinet of ministers. The Island raised the matter with relevant authorities in the wake of a section of the media reporting the PCoI recommending punitive measures against former President Maithripala Sirisena, Defence Secretary Hemasiri Fernando, IGP Pujitha Jayasundera, Chief of State Intelligence Senior DIG Nilantha Jayawardena, Chief of National Intelligence retired DIG Sisira Mendis and All Ceylon Makkal Congress (ACMC) leader and Samagi Jana Balavegaya MP Rishad Bathiudeen et al over the Easter Sunday carnage.
Sources pointed out that due to the inordinate delay in sharing the PCoI report with the AG, the department hadn’t been able to take preliminary measures required to initiate the proceedings. Sources said that a team of officers would take at least six weeks or more to examine the report before tangible measures could be taken.
With the AG scheduled to retire on May 24, 2021, even if the AG Department received the P CoI it would be quite a tough task to initiate proceedings ahead of retirement, sources said. However, in terms of the 20th Amendment to the Constitution enacted in last October, both the AG and the IGP could receive extensions beyond 60 at the President’s discretion.
Dappula de Livera received an Acting appointment as the AG a week after the Easter Sunday carnage whereas his predecessor Jayantha Jayasuriya, PC, was elevated to Chief Justice.
Responding to another query, sources said that the Attorney General two weeks ago requested Secretary to the President for a copy of the P CoI. However, the AG was yet to receive one, sources said. In spite of the AG not receiving a P CoI copy, the AG had instructed the IGP to obtain a copy of the report when he requested the police to complete investigations into the Easter Sunday carnage. The AG issued specific instructions after having examined police files pertaining to the investigations.
The IGP, too, hadn’t received a copy so far though some sections of the report were in the public domain.
Agriculture Minister Mahindananda Aluthgamage displayed at a live political programme on Derana a copy of the P CoI report he received at the cabinet meeting earlier in the day.
Sources said that the Attorney General’s Department couldn’t decide on a course of action in respect of the Easter carnage on the basis of a section of the report. In terms of the Commission of Inquiry Act (Section 24), the AG enjoyed significant powers/authority in respect of investigations; sources said adding that the Department urgently required both the P CoI report and police investigations report. The Attorney General’s Department has raised the delay in receiving a P CoI report amidst the Catholic Church attacking the government over the same issue.
Sources said that ministerial committee appointed to study the P CoI report couldn’t decide on how to proceed with the recommendations and the matter was entirely in the hands of the AG. Sources pointed out that the delay on the part of the government to release the report had received the attention of sections of the international media, including the New York Times. Public Security Minister retired Rear Admiral Sarath Weerasekera having met Malcolm Cardinal Ranjith at the Bishop’s House on Dec 8, 2020 said that the AG would get a copy of the P CoI report once the President received it. Minister Weerasekera said that the CID had handed over the relevant files after having completed investigations into eight blasts. Referring to the Parliamentary Select Committee (PSC) report on the Easter Sunday carnage, the former Navy Chief of Staff said that all such documents would have to be brought to one place and considered before initiating legal proceedings. Acknowledging that there could be delays, lawmaker Weerasekera said that on the instructions of the Attorney General a 12-member team of lawyers was working on the case. The minister vowed to expose the mastermind behind the Easter Sunday attacks. Investigations continued while some of those wanted were overseas, the minister said.
The minister acknowledged that the Attorney General couldn’t proceed without the P CoI report. Minister Weerasekera reiterated that once the President received the P CoI report, it would be sent to the Attorney General. The minister said that there were documents two to three feet high that needed scrutiny. The minister assured comprehensive investigation. The minister said that investigations pertaining to eight blasts had been completed and the reports handed over to the AG. However, the Attorney General had found shortcomings in those investigations.
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By Saman Indrajith
The Presidential Commission of Inquiry on the Easter Sunday bombings had failed to identify the mastermind of , the JVP said yesterday.
Addressing the media at the party headquarters in Pelawatte, JVP Propaganda Secretary MP Vijitha Herath said that the PCoI report had levelled accusations against former President Maithripala Sirisena, former IGP and head of intelligence for their dereliction of duty, shirking of responsibilities and not taking action to prevent the attacks and negligence. There were reference to the causes of the terror attacks and actions to be taken to avoid such attacks and the influence of extremist organisations. “However, there is no mention of the mastermind of the attacks, the handlers of the attackers and those whose interests the carnage served. It is also not mentioned whether there has been any foreign or local organisation behind those attacks. As per the PCoI report the attack took place as a result of culmination of extremism.
“According to the PCoI the extremist activities were a result of the prevailing political situation then. The entire nation was waiting to see who was responsible and who masterminded those attacks. The PCoI has failed to identify the true culprits responsible for the terror attacks. The report says that the leader of the suicide cadres killed himself in the attacks and it was a puzzle. That means those who are actually responsible for the attacks are still at large. The report does not provide exact details of the sources of the attacks. The PCoI had sittings for one year and five months. It summoned various persons and got their statements but it has failed to shed any light on the terror attacks. Everybody knows that the top leaders of the government and heads of security and intelligence establishments failed in their duties. Ranil Wickremesinghe was the second in command and he too is bound by the responsibility but the PCoI report fails to identify him as one of the persons against whom legal action should be instituted. The PCoI has treated Wickremesinghe and former President Maithripala Sirisena differently. We are not telling that this report is a total failure but we cannot accept this as a complete report. The PCoI handed over its report to the President on Feb 1. After 23 days it was sent to Parliament. Now, a copy of the report is there in the parliamentary library for the perusal of MPs.”
Herath said that the PCoI did not have powers to take punitive action. “It only has powers to name those responsible and recommend action to be taken against those named.
