Fillip for boat-building industry in Budget

Sanjeevi Jayasuriya

Targeted as a main stream revenue earner of $ 1 b within the next five years, the boat-building industry is expected to run into turbulent waters with regard to financing its targeted growth. The performance in the first half of 2012 was weak due to a sluggish European market with Germany being the only exception.

"With patronage from countries such as Seychelles, the Maldives, India and Pakistan and the present confirmed orders, the industry could make some headway," Boat Building Technology Improvement Agency Managing Director, Gamini B. Herath told the Sunday Observer Business.

With the slow recovery of traditional markets adversely affecting the local boat-building industry, strenuous efforts are now being made to find new markets in countries such as the United Kingdom and the Netherlands, he said.

Neil Marine, a premier boat- building company in Sri Lanka participated in the UK Boat Show and secured approval for several products.

The boat-building industry which receives considerable support from the Government has been earmarked for further concessions in the forthcoming Budget.

The industry requires consistent orders from the local market for its sustainability and to promote its products abroad. However, the import of cheap boats is an obstacle.

The present duty structure should be reconsidered to protect the local industry, he said.

The only way forward is to aggressively promote the industry worldwide.

"We intend to participate in boat shows in the UK, the Netherlands, Singapore, China and Korea," Herath said.

He said that a program is under way to train technicians with the support of the EDB. "We plan to have a mini boat show at the Diyawanna Oya to stimulate demand in the local market and introduce new designs. It is to be held at the end of next year."

These efforts will cushion the negative trend the industry is facing. The building of marinas around the island will make the industry progress.

The first marina is to be constructed in Beruwala. The building of marinas will be promoted by the Ministry of Tourism. Foreign and local investors are being sought for this new and lucrative venture.

Sri Lanka has the potential to develop marinas and reach the levels of Thailand and Singapore where marinas have become a thriving market.