Fisheries

Research from the Central Bank reveals that the Northern province GDP quadrupled   from an average of 3.4% during the free Ceasefire time period (2002-2004) to 12.6%. The main area of growth that was seen was in the agricultural and fishing sector which expanded by an average of 32% during this period in the Northern Province. This clearly shows when the North is liberated the key focus area should be agriculture and fishing. For the fisheries industry in particular we require cooling systems to be developed, specifically an ice factory, whilst also the physical distribution system needs to be revamped so that goods can be transported to Colombo and the other parts of the country efficiently. The model implemented in the Eastern Province can be replicated to ensure the security aspects of doing business post liberalization.

Sri Lanka must also use the Northern Province fisheries sector development programme to develop a strategy targeting the EU. Shrimp farming should be introduced to this area as one of the key markets globally for Sri Lanka - the EU depicted a 77 percent growth last year which explains the opportunity that we have in the global market place. We must look at removing VAT from shrimp feed which can be an incentive to the farmers in the North to get involved in this project. May be we can also set up a BOI type export processing zone dedicated to shrimp farming.

Paddy Sector

However, World Bank research reveals that Paddy production doubled in the Northern Province from the average 65,000 tons to 138,000 tons during the 2002-2003 cease fire period. This means that, after the liberation of the Northern Province, we have the  opportunity of stopping the import of rice into the country and thereby also saving foreign exchange.

Labour Force

As per the 2004 report of the Department of Census and Statistics, in the Northern Province the labour force participation rate is as low as 34% whilst the national average is at 48.6%. This means that we need to drive livelihood development projects and get people involved so that there is no idle labour in the Northern Province. The focus on agriculture and fisheries is one way of addressing this issue. Recent studies done on this area reveal that with a focus thrust on agriculture and fisheries, labour force participation in the North can expand to over 50% which is above the national average.

Whilst driving the traditional industries we also need to focus our efforts on providing employment opportunities for women as the unemployment rate for women in the Northern Province is reported to be higher than the national average. Taking this information into consideration the main focus could be on industries like outsourcing (BPOs), which essentially recruit women.