Voyage Sri Lanka 2024

Exploring the Future of Marine & Offshore Export Services Growth

Introduction

Sri Lanka’s first-ever marine summit, “Voyage Sri Lanka 2024”, was held on the 26th of November 2024, marking an important milestone in the country’s efforts to establish itself as a regional marine & offshore hub. A collaborative effort between several related government organisations, the Sri Lanka Export Development Board (SLEDB) played the lead role with the support of many generous sponsors from the private and public sectors.

The summit was designed to showcase the Island’s blue economic potential in the marine & offshore services, and boat-building sectors. It brought together a diverse range of 200+ participants, including 21 overseas participants representing 8 countries. The composition included policymakers, industry leaders, investors, and experts from across the globe.

Leveraging its strategic location along key maritime routes, Sri Lanka aims to position itself as a marine & offshore hub for global trade. Thus, the summit’s primary focus was to build new partnerships, attract foreign investment, and explore innovative solutions to strengthen Sri Lanka’s export sector. Accordingly, Voyage Sri Lanka 2024 highlighted the country’s existing assets while also laying out a vision for future growth of the blue economy, driven by modernisation and sustainable practices.

The three-day event featured visits to the seaports of Trincomalee and Hambantota on the first two days, followed by a full-day conference in Colombo on the third day. A group of 21 potential foreign investors representing several countries, including India, Saudi Arabia, Maldives, France, Japan, Thailand, the United States of America, and Cambodia, visited these ports to clearly understand Sri Lanka’s existing capabilities, potential and its emerging blue economy.

During the full-day conference in Colombo, discussions centred on port infrastructure, maritime security, sustainable shipping, offshore fish farming, and the integration of new technologies, among other key topics. Having concluded successfully, the summit is expected to generate positive outcomes that can catalyse significant developments in Sri Lanka’s marine & offshore and boat building sectors. These efforts are expected to unlock new opportunities for economic growth.

Summit Programme Overview

The summit unfolded over three days, highlighting key aspects of Sri Lanka’s marine landscape and its potential for future development.

Day 1: Trincomalee Harbour Visit (24th November 2024)

The first day began with a guided tour of Trincomalee Harbour, one of the world’s best natural deep-water harbours. Delegates were given an overview of the harbour’s historical significance, current operations, and plans for future expansion.

Key Highlights:

• Strategic Importance: Trincomalee’s deep-water capabilities and natural geography make it ideal for handling large vessels and bulk cargo. Its location on Sri Lanka’s eastern coast positions it as a gateway to markets in South and Southeast Asia.
• Current Infrastructure: Recent upgrades, including expanded berthing facilities, and enhanced security measures, were showcased.
• Investment Opportunities: Potential areas for investments in ship repair & ship layups were highlighted in Sobaer Island, Clappenburg etc.
• Future Development Plans: Plans to expand the harbour’s capacity and integrate it with inland transport networks were discussed, along with attracting investments, bunkering, and marine & offshore services.

Several experts emphasised the harbour’s potential to become a regional Marine hub. The visit concluded with a discussion that revealed insights from local port authorities and international consultants.

Day 2: Hambantota International Port Visit (25th November 2024)

On day 2, the foreign participants were given a guided tour of the Hambantota International Port, a modern deep-water facility strategically located along key global shipping routes on the southern coast of Sri Lanka. The port’s development is central to Sri Lanka’s blue economy, given its capacity to handle large-scale maritime operations.

Key Themes:

• Role in Export Strategy: Hambantota’s proximity to emerging markets in Asia, Africa, and the Middle East positions it as a crucial node in global trade networks. Discussions focused on leveraging this connectivity to boost exports and attract foreign direct investments (FDIs).
• Business Opportunities: Delegates explored opportunities for setting up, value-added services, and industrial zones within the port’s vicinity. The emphasis was on fostering public-private partnerships to drive growth.
• Operational Strengths: Presentations showcased the port’s state-of-the-art facilities, including container handling, bunkering, and ship repair services. Its ability to accommodate ultra-large vessels was highlighted as a competitive advantage.
• Sustainability Initiatives: Efforts to implement green port practices, such as using renewable energy and reducing carbon emissions, were also discussed.

Day 3: Full-Day Conference in Colombo (26th November 2024)

Day 3 of Voyage Sri Lanka 2024 brought together leaders, marine enthusiasts, and experts to explore the future of Sri Lanka’s marine & offshore industry, at the Kingsbury Hotel in Colombo. With a focus on the blue economy, the varied discussions highlighted Sri Lanka’s strategic role in the global maritime sector. Keynote speeches, panel discussions, and networking sessions provided valuable insights into the potential for growth, collaboration, and investment in Sri Lanka’s marine and offshore industries.

Opening Remarks

Mr Mangala Wijesinghe, Chairman & CEO of the Sri Lanka Export Development Board (SLEDB), delivered a warm welcome to the gathering. He emphasised the EDB’s pivotal role in championing growth in Sri Lanka’s Blue economy by furthering international collaboration, aiming to grow the sector from about USD 200 million annually at present to USD 1 billion by 2027, thus capturing a greater share of the USD 1.5 trillion global maritime industry.

Address by the Hon. Minister of Trade, Commerce, Food Security & Cooperative Development

Speaking on behalf of the Government of Sri Lanka, the Hon. Minister highlighted Sri Lanka’s strategic commitment to and national plan for the marine & offshore services sector. Policy reforms and infrastructure investments were key themes that were discussed, underscoring a broad vision for the economic transformation of Sri Lanka’s Blue Economy.

Keynote Speech: Global Marine Security

Vice Admiral Anil Kumar Chawla (Rtd.), PVSM, AVSM, NM, VSM, PhD (India), delivered a compelling perspective and an overview of global maritime security issues before dwelling specifically on what Sri Lanka should do to further bolster its maritime security in the years ahead. His address highlighted conventional military threats, the scourge of terrorism, piracy, smuggling of narcotics and psychotropic substances, weapons and contraband, irregular human migration, maritime environmental pollution and damage, illegal fishing, climate change, and the issue of cybersecurity. Further, non-conventional maritime threats due to advances in technology, globalisation, state failure and climate change caused by global warming were emphasised.

Port Expansion & Infrastructure Development

Admiral Sirimewan Ranasinghe, Chairman of Sri Lanka Ports Authority (SLPA) highlighted the significance of Sri Lanka’s strategic location as a potential maritime hub in South Asia, and the ongoing port expansion & infrastructure development projects at Sri Lanka’s ports. The importance and the potential of Trincomalee Harbour as the fourth-largest natural deep-water harbour was also highlighted.

Sri Lanka’s Competitive Position in the Boat-Building Industry

Mr Kaushal Rajapaksa, Chairman of the Chamber of Marine Industries of Sri Lanka, underscored the nation’s strengths in boat building, with 12 existing companies already catering to 15+ international markets. He affirmed the future potential of Sri Lanka’s boating-building industry, positioning it as a prospective billion-dollar sector.

Panel Discussions and Presentations

Panel Discussion 1: Offshore Energy for a Sustainable Future

Panellists: Eng. Ms Preeni Withanage, Mr Samuel Morley, Dr Tilak Siyambalapitiya, Dr Naresh Bana

Moderated by Mr. Ricky Barnett, this panel discussion brought together leading experts from Sri Lanka’s energy sector to explore offshore energy opportunities. Key themes included oil and gas exploration, offshore wind energy, green hydrogen, public-private partnerships, and risk mitigation.

Key Insights

Sri Lanka’s Oil & Gas Industry – Current Status and Future Prospects

• Historical Overview: Exploration began in the 1960s in three key basins: Cauvery (North), Mannar (West), and Lanka (East).
• Basins: Divided into 922 offshore blocks (15x15 sq km each).
• Significant Discoveries: Mannar Basin yielded major gas discoveries (Dorado: 350 BCF, Barracuda: 1.8 TCF).
• Exploration Challenges: Lack of national gas policy, regulatory hurdles, no offtake agreements.
• Recent Developments: Petroleum Resources Development Act (2021), policy/licensing reforms (2022-2024), inviting proposals under open acreage licensing (2025 onwards).

Sri Lanka’s Offshore Wind Energy Potential

• Geographic Advantage: Northwestern coast offers favourable wind speeds and minimal shipping lane disruption.
• World Bank Collaboration: Ongoing two-year feasibility study for optimal locations.
• Project Timeline: Study concludes 2026, bidding 2027, development targeted for 2028.
• Challenges: High initial investment, specialised vessels, environmental concerns.

Green Hydrogen – A Transformative Energy Source

• Potential Applications: Advanced fuels, heavy industry decarbonisation, export potential.
• Challenges: Lack of storage/transport infrastructure, need for electrolysis and grid investment.

Public-Private Partnerships (PPPs) in Offshore Energy

• Global Case Studies: Hornsea Wind Farm (UK), Amrum Bank (Germany).
• Sri Lanka’s Readiness: Need for policy stability, transparent bidding, proactive risk management.
• Indo-Sri Lanka Collaboration: Leverage India’s expertise in offshore wind.

Investment and Infrastructure Challenges

Discussions covered oil and gas exploration progress, the need for a committed investor, and the role of LNG in Sri Lanka’s energy mix, highlighting the lack of an LNG terminal.

Risk Analysis and Mitigation Strategies

Key risks explored included planning, environmental, financial, and regulatory aspects of offshore energy projects.

Key Takeaways

• Need for clear regulatory frameworks.
• Importance of Indo-Sri Lanka collaboration.
• Infrastructure modernization (LNG terminals, ports).
• PPPs as a crucial driver.

Investment Climate in Sri Lanka

Mrs Renuka Weerakone, Director General of the Board of Investment (BOI), outlined Sri Lanka’s investment-friendly policies and incentives for the marine and offshore sectors.

Panel Discussion 2: Marine Innovations – Navigating the Future with Cutting-Edge Solutions

Panellists: Capt. Sriyantha Arampath, Mr Benny Fernando, Prof Terney Pradeep, Mr Bindu Ranasinghe

This panel delved into marine industry innovations, workforce development, port competitiveness, and environmental sustainability.

Key Insights

Vocational Training and Workforce Development in Shipbuilding

• Urgent need for vocational training to bridge workforce gaps.
• Importance of recognizing skilled workers (welders, shipbuilders).
• Need for public-private sector collaboration in training.
• Incentives for OEMs to invest in Sri Lanka.

Shipbuilding Excellence: Case Study of the ‘Sophie Germain’ Vessel

Mr Emmanuel Decugis praised the vessel's performance (20% better in adverse weather, 18% fuel savings), validating Sri Lanka's shipbuilding potential.

Environmental Impact of Shipping and Port Development

• Harbours face biodiversity threats from sedimentation and pollution.
• Colombo Port shows low biodiversity due to high pollution.
• Galle Harbour affected by coastal sedimentation.
• Need for stakeholder-driven marine spatial planning.
• Environmental scrutiny needed for Trincomalee and Hambantota.

Hambantota International Port – A Strategic Asset

• Strong partnership between China Merchant Ports & SLPA.
• Rapid growth in transshipment units (100k in 2017 to 700k in 2023).
• Focus on bunkering, oil/gas, and RoRo services; container operations expanding.
• Proposal for a unified "Sri Lankan Ports" national brand.

Improving Maritime Disaster Preparedness

Recommendations include improving research facilities, enhancing legislation, and developing training programmes.

Boosting Sri Lanka’s Maritime Attractiveness: Key Policy Recommendations

• Challenges: Lack of integrated services, higher operational costs.
• Policy Recommendations: Reduce port tariffs, lower bunkering costs, enhance ship repair facilities.

Strengthening Sri Lanka’s Maritime Workforce

Emphasis on collaborating with military institutions for skilled professionals.

Key Takeaways

• Investing in workforce training is essential.
• Environmental sustainability must be a priority.
• Hambantota’s growth offers opportunities; collective port marketing needed.
• Government policy reforms can enhance competitiveness.
• Disaster preparedness needs strengthening.

Nautical Tourism for Inclusive Growth

Dr Dietmar Doering highlighted the untapped potential of nautical tourism for economic growth. Mr Shan Perera showcased Sri Lanka’s boat-building expertise. Mr Buddhika Hewawasam outlined the marine tourism sector’s development and future possibilities.

Panel Discussion 3: Sustainable Fisheries Management for Economic Growth

Panellists: Mr Athif Shakoor, Mr Irfan Thassim, Mr Lex Guez, Dr Rochana Weerasinghe

Key Insights

Sri Lanka’s Transition into Fisheries and Aquaculture

• Economic Diversification: Aquaculture as a new export-driven industry.
• Reducing Dependence on Wild Fishing: Aquaculture for food security and sustainability.

Advancements in Fish Farming Technology

• Floating Cage Technology: Imported from Scotland, used in Trincomalee, producing thousands of tons annually.

Comparing Fisheries in Sri Lanka and the Maldives

• Sustainable Fishing Methods: Maldives relies on pole-and-line and handline fishing.
• Marketing Strategies: Maldives markets seafood as a high-value product.

Deep-Sea Aquaculture and Offshore Farming

• Offshore Aquaculture Platforms: Operate 12-20 miles offshore, minimize disruption, withstand extreme weather.
• Key Technological Features: Renewable energy, centralized automation, four-directional mooring.
• Production and Investment Costs: Up to 8,000 tons/annum per platform; Phase 1 investment ~€58.7 million.
• Planned Collaboration: Sri Lankan shipyards to construct platforms.

National Fisheries Data and Aquaculture Growth Potential

• Current Fish Consumption: Sri Lankans consume 11.9 kg/capita annually.
• Aquaculture Development Opportunities: Seaweed, sea cucumber farming; need for hatchery investment.

Challenges Facing Sri Lanka’s Fisheries and Aquaculture Sector

1. Monsoonal Disruptions: Submersible cage technology recommended.
2. High Feed and Labour Costs: Government tariffs and VAT impact profitability.
3. Lack of Hatchery Facilities: Reliance on wild populations; need for investment.

Expanding Sri Lanka’s Fisheries Industry

• Exploring New Locations: Northern Peninsula identified for expansion.
• Global Model for Growth: Norway’s aquaculture success; Sri Lanka’s head start.

Lessons from the Maldives: Fish Quality and Processing

• Refrigerated Seawater (RSW) Systems: Used in Maldives for optimal storage.
• Sri Lanka’s Challenge: Reliance on ice blocks degrades quality; need for upgrades.

New Developments and Future Prospects

• Lobster Farming: Hatchery development underway.
• Mooring Systems for Deep-Sea Platforms: Four-directional system ensures stability.

Key Takeaways

• Invest in advanced aquaculture technology.
• Government policies must support development and infrastructure.
• Premium branding and quality improvements for exports.
• International partnerships are essential.

Maritime Domain Awareness – Safety & Security

Vice Admiral Priyantha Perera emphasized the Navy’s role in ensuring maritime safety and security.

Colombo Port City Development

Ms. Dhanya Gunawardana discussed the Port City Colombo project's role in transforming Colombo into a global trade and financial hub.

B2B Meetings, Networking & Dinner to Support International Collaboration

The summit culminated in B2B meetings and a networking dinner, fostering partnerships for investment in shipbuilding, port infrastructure, offshore energy, sustainable fisheries, and marine tourism.

Key Insights and Takeaways Overall

The summit provided valuable insights into the future of Sri Lanka’s blue economy, highlighting recurring themes of the nation’s potential and the steps needed to unlock it.

Emerging Trends in Global Marine Trade

Experts discussed shifting dynamics driven by technology, sustainability, and geopolitics, emphasizing Sri Lanka's strategic advantage.

Benefits of Improved Port Infrastructure

Modernization efforts at Trincomalee and Hambantota will improve efficiency, reduce costs, and attract more business, boosting competitiveness.

Recommendations for Stakeholders

1. Strengthening Public-Private Partnerships (PPPs): Encourage FDI, facilitate joint ventures, streamline regulatory approvals, develop special economic zones (SEZs).
2. Enhancing Sri Lanka’s Competitive Edge in Shipbuilding and Repair: Invest in workforce training, modernize facilities, expand OEM incentives, establish dedicated ship repair zones.
3. Accelerating Offshore Energy Development: Fast-track wind projects, establish frameworks for oil & gas, develop incentives for renewables.
4. Expanding Marine Services and Maritime Logistics: Position as a maritime service hub, enhance bunkering operations, promote Colombo and Hambantota as transshipment hubs.
5. Sustainable Fisheries and Aquaculture Expansion: Encourage deep-sea aquaculture, develop hatchery facilities, improve seafood cold storage and transport.
6. Policy and Infrastructure Modernization: Harmonise policies, upgrade port infrastructure, implement digital platforms.

Opportunities for the Marine Industry in Sri Lanka

The summit underscored Sri Lanka’s immense potential to establish itself as a global maritime hub. Key opportunities include:

Port Development and Expansion

• Colombo Port Expansion: Attract new international shipping lines and logistics providers.
• Hambantota Port Growth: Become a global logistics and bunkering hub, regional leader in ship refuelling and cargo handling.
• Trincomalee Port Development: Potential for bulk cargo, industrial development, ship maintenance, marine tourism, cruise operations.

Growth in Sri Lanka’s Shipbuilding and Ship Repair Industry

• Expanding Shipbuilding Capabilities: Target specialised vessels (OSVs, ferries).
• Developing a Marine Engineering Ecosystem: Encourage OEMs, invest in dry/floating docks.

Offshore Energy Development – Wind, Oil & Gas, and Green Hydrogen

• Offshore Wind Energy: Develop wind farms, diversify energy mix.
• Oil & Gas Exploration: Invest in Sri Lanka’s hydrocarbon sector.
• Green Hydrogen & Renewable Energy Exports: Become a low-cost hydrogen exporter.

Sustainable Fisheries & Deep-Sea Aquaculture

• Expansion of Deep-Sea Fish Farming: Investment in deep-sea platforms.
• Developing Hatcheries & Aquaculture Infrastructure: Support export-driven aquaculture.
• Premium Branding for Sri Lankan Seafood Exports: Improve value of fisheries exports.

Nautical Tourism & Marine Recreation

• Expanding Marine Tourism Offerings: Develop marinas, floating hotels, cruise terminals.
• Positioning Sri Lanka as a Dive & Eco-Tourism Destination: Leverage coral reefs, shipwrecks, marine biodiversity.

Enhancing Maritime Services & Logistics

• Strengthening Colombo’s Role: Modernise operations against regional competitors.
• Bunkering & Fuelling Services Expansion: Offer low-cost fuel at Hambantota.
• Growth of Maritime Training & Crew Change Services: Become a key provider of seafarers.

Collaborations with International Business Partners

Partnerships with global companies are crucial for expertise, capital, innovation, and efficiency.

New Export Markets

Enhanced maritime connectivity will enable reach into new markets across Asia, Africa, Europe, and the Middle East.

A Sustainable Maritime Future for Sri Lanka

Voyage Sri Lanka 2024 positioned Sri Lanka as a rising maritime hub with immense potential. The event is expected to draw significant FDI inflows, catalysing growth in the blue economy.

The long-term vision requires leveraging strategic location, modernizing port infrastructure, and fostering a business-friendly environment. By capitalising on strengths and embracing collaboration, Sri Lanka can secure its place as a regional maritime leader, driving sustainable economic growth.