First fish canning factory goes into production end-2007

by Elmo Leonard

Sri Lanka's first operational fish canning factory is expected to go into production end-2007, in Mutwal, Colombo. The island's first fish canning factory built in Pesalai near Mannar in the early 1970, ended a white elephant consequent to unrest between the north and south.

The factory is a joint venture floated by a Russian company called Inform Progress Bank and Ceylon Fisheries Corporation (CFC).

The Russians will bring in $9.67 million and the CFC equity will be one acre and 72 perches of land within its premises, secretary to the Ministry of fisheries, G. Piyasena said.

The factory will put out 96,000, 200 gramme fish cans per day, 20 percent of which could be sold in the local market. Going into the canning will be, 36 tonnes of tuna per day and 2.9 tonnes of other varieties, including small varieties, herrings being one type.

In the first year, a profit of $500,000 is projected, when 300 workers will be employed.

In five years, the output is expected to be 232,000 million cans, and profits to reach $2.1 million, Piyasena said.

This joint venture was initially agreed upon in 2002, but put on hold. Fisheries Minister Felix Perera revived it. The fish canning factory is expected to be the first of five fish canning factories under the Mahinda Chinthana of President Mahinda Rajapaksa.

The second one is expected to be built in Galle, and negotiations are under way. A corporate in New Zealand, has shown interest, Piyasena said.

Tuna caught by foreign vessels outside Sri Lanka's EEZ and by local craft are processed in Colombo and exported en masse.

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