The Ornamental Fisheries Industry and Cultivation Project: Sri Lanka

This project, presented by S.P.H. Nisansala, examines the ornamental fisheries industry, focusing on its global and local trends, particularly in Sri Lanka. It covers various aspects, including product descriptions (freshwater fish), market feasibility, technical and financial considerations, and the business environment. The project analyzes the industry's potential, marketing strategies, and technological advancements, along with financial projections and risk mitigation. It also explores the roles of key institutions and government regulations within the Sri Lankan context, including a SWOT and PESTLE analysis to understand the external and internal factors affecting the industry. The project highlights the industry's significant demand, particularly in the US market, and the potential for growth, emphasizing the importance of financial planning and risk management for establishing a successful ornamental fishery business.

ORNAMENTAL FISHERIES
INDUSTRY AND CULTIVATION
Presented by,
S.P.H.NISANSALA
Diploma in Credit Management 2017/ 2018
The Institute of Bankers
Of Sri Lanka

Acknowledgement
I have an immense pleasure in the successful completion of this project titled; “Ornamental
Fishery Industry” has tried my level best to present this information as clearly as possible.
I would like to extend my gratitude to a number of people whose help was very valuable in
completing this project.
I have completed this project under the guidance and supervision of the lecturer, Mr. A. R.
Ahamed Nawaz I will be failed in my duty, if I do not acknowledge the esteemed scholarly
guidance, assistance and knowledge given by him in completing the research.
I would also like to thank the staff of the institute of bankers of Sri Lanka and the staff of
NITA and NACDA for support on this.
Then I would like to thank Mr. Thilina Pathum for sharing his knowledge and experience
with me about the fishery industry as experienced producer.
Mere acknowledgement may not redeem the debt I owe to my parents, brother and friends for
their direct/indirect support during the entire course of this project.
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Abstract
In this study mainly discuss about ornamental fishery industry and its trends in the world and
locally. This industry has huge demand all around the world. There are many countries
engaged with this industry and there are many producers, sellers all around the world. It
means many suppliers and vendors in the world. Sri Lanka also does this business very well.
Under this in here discuss about product, marketing feasibility, technological feasibility,
financial feasibility and business environment of this industry.
Attention to the product there are many products which are marine water fisheries, fresh
water fisheries and brackish water fisheries. Main buyer of these fishers is United Status
America. Main producer is Singapore. Sri Lanka has huge demand and they fulfill 2& of the
world demand.
Describe about the marketing feasibility world demand can divide mainly two parts. Marine
water and fresh water is these two parts.
In technological industry people who are engaged with this industry use many technologies
and government also introduces many technologies by many ways. They organize training
programs and trade shows for this. Exhibitions also have done good part for developing this
industry.
There are two parts for business industry those are external market and internal market of the
industry. SWOT analysis and PESTLE analysis are helps to study external and internal
market of the industry. There are many government rules and regulations under this.
Financial analysis of the industry is very important part and mainly it identify equity capital,
profit, fixed cost, variable cost, market share of the industry etc. When we calculate this we
can identify credit need and owners capital not only that we can identify profit of the
business.
There are some risk factors of the industry and we can reduce them by using many things.
Key words – Ornamental Fishery Industry, Market, Technology
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Table of Contents
1 Introduction........................................................................................................................2
1.1 Purpose of the project.................................................................................................2
1.2 Product description.....................................................................................................2
1.3 Promoter’s profile.......................................................................................................3
1.4 What is the expect from the bank................................................................................4
2 Analysis..............................................................................................................................5
2.1 About the Industry......................................................................................................5
2.2 Market Feasibility.......................................................................................................8
2.3 Technical Feasibility.................................................................................................11
2.4 Financial Feasibility..................................................................................................13
2.5 External and Internal Environment...........................................................................18
2.5.1 SWOT analysis..................................................................................................18
2.5.2 PESTLE analysis...............................................................................................20
2.6 Risk and Risk mitigation factors...............................................................................21
3 Conclusion........................................................................................................................22
4 References........................................................................................................................23
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1 Introduction
1.1 Purpose of the project
This report reference to the workshop we have participated about the Entrepreneur
development organized by the North Central provincial office. At the work shop I met the
banking officer from Serendib Development bank. In there we informed bank wish to support
to select once who wish to start up Ornamental Fisheries Cultivation for improve their
technical and financial management skills.
When I describe about the purpose of this project I wish to start Ornamental Fisheries
Cultivation and I need to support for start this project from the bank. I have prepared this
project for explain how I wish to process this project, what is the products, market feasibility,
financial feasibility, strategies, threats, opportunities, external and internal factors of the
industry, and what I expected from the bank.
1.2 Product description
When we describe about the Ornamental fisheries are attractive colourful fishes of peaceful
nature. Those are kept as pets’ suitable place of an aquarium or garden pool. People hope
enjoying their beauty, fun and fancy. In other words, we can call ornamental fishers as “live
jewels” for their beautiful coulors and playful behavior.
People get more advantages from this business and as pets. As a business this product has
high demand not only the local market but also all around the world. When the person starts
this business he has more opportunity to develop his business.
These Ornamental fisheries are mainly three ways which are fresh water fish products, and
marine fish products. In my project I wish to select only fresh water fish products as my
product. World high demand also shows this fresh water fish products. As a percentage it is
90% of full demand of the industry.
There is more difference fishes are in different names. Most demanded fish called as guppies.
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Not only guppies but also we can identify fishers are swordtails, platys thorns tetras, angels,
gourami’s catfishes etc.
The result of my study I wish to cultivate crafts, zebra and gold fish. There are three types of
zebras and gold fishes. Zebras are in red, yellow and luminous colour. Gold fishes are in
Orinda, calico and red caps.
We can see many advantages of this industry as below,
 Self employment opportunities
 Land usage & suitability
 Foreign income generation
 Minimum investment & minimum space
1.3 Promoter’s profile
Back Ground
I am Hasitha Jayawardana and I am 20 years old. I live in Kuliyapitiya area and expect to
start a business near to our area. I have one brother and one sister and still not married. I
done my AL in commerce stream and got one B and two Cs. Then I started doing AAT. My
father is a business man and mother is a retired teacher. Father has a good experience about
business handling and business ideas. I think it is a big support to me and my mother also
like to support me when I doing this.
We have a land near to Pannala Kuliyapitiya road and I hope to start my new business at
there. Its owner is my father. I think it is suitable area for this fresh water fish cultivation. We
can collect the water from near stream and well water also at there. It has big trees and not
came sunshine directly to the land. It is better to fishery cultivation.
Qualification (Technical and Professional)
I have done my AL at commerce stream and I done AAT exams also. I think it is important
to me for handling the business and manage the financial features. I wish to start a certificate
cause about the fishery cultivation at the NACDA and its duration is one and half months.
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Not only that I search some places which have well experience people offer the training
programmers for new comers. One of like this place situated near to Kirindiwela area.
(Gampaha district) Gradually I can do advance diploma and degree also. I think it is better
for my knowledge and help to develop this business properly.
About the Cause -
Experience
Still I am not experience in this business but I have discuss with NITA and they told when I
am doing the cause I can work with well experienced cultivation business man and I can get
better experience how to start the business and how develop the business and how to
continue the business.
1.4 What is the expect from the bank
I need a facility for the startup this fishery cultivation business. Total cost of the project as
total cost and fixed cost. Owner gives the land and Rs.100, 000.00 for the business as his
capital and the owner expect from bank credit facility for other needs. According to
estimations need Rs. 500,000.00 from the bank. I expect the guidance and advices for
developing this business. After first six months I can earn my revenue from this business. So
I can settle the loan after six months.
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2 Analysis
2.1 About the Industry
When I describe about the Ornamental fishery industry it can be describe under two
categories as below,
 Sri Lankan Ornamental fishery Industry
 World ornamental fishery Industry
Sri Lankan Ornamental fishery Industry
Sri Lankan fishery industry has a long history and it starts on 1952 as an industry. Many
importers, buyers, retailers and cultivating people are engaged with this industry and
government rules and regulations published under this industry.
Mainly Sri Lanka exports three categories of fishes,
a) Fresh water ornamental fish species
b) Brackish water fish species
c) Marine ornamental fish species
Fresh Water Cultivation
In Sri Lanka fresh water species are bred in captivity by a large number of small and medium
scale producers and retailers and exporters are involved to the middle part of the industry.
These producers are dedicated to maintaining the highest standards of quality.
Fresh water aquarium fish comprise the more colourful and striking species of guppies,
swordtails, platys, bards, tetras, angels, gouramies and catfish. Out of these freshwater
species exported from Sri Lanka about 60-70% consists of famous fancy guppies. In
international market highly recognized due to the strength and diversity of the particular fish
species when compared to other countries.
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Marine ornamental fish species
Marine fish and invertebrates are collected by experienced scuba divers from the waters
around the island. This is also very important and good opportunity to Sri Lanka as a Island.
Other thing is need to verify fish are in good health conditions and good quality. Department
of Animal on health accompanies issued a certificate for that by each and every shipment.
Not only that but also many Sri lankan departments and institutes engaged with this industry
many ways. We can show this under below table.
Table 01
Institution or department Present Involvement
 Ministry of fisheries and aquatic
recourses
 Policy planning formulating and
implementation of rules and
regulations
 National Aquatic resources Research
& development Authority
 Research & Development
 National Institution of fisheries and
natural engineering
 Training & Education
 Export Development Board  Providing opportunity to trade fair
and linking exporters with producers
 Department of Animal Quarantine  Quarantine of exports and import
ornamental fishers
 Board of Investment  Promotions of investment
 Sri Lanka Custom  Implement the fishers and tax charges
There are 40 regular exporting companies in Sri Lanka. Main buyers of Sri Lankan
ornamental fish are the USA Japan and the European Union.
Sri Lankan ornamental fish are in high demand and are exported all around the world. Sri
Lanka has ideal conditions and resources for this industry. A Conductive climates and the
availability of coral reefs, sand bars, lagoons around the country as well as inland water
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bodies such as streams, rivers and reservoirs provide the ideal ground for breeding of marine,
brakish water and freshwater species in Sri Lanka. And Sri Lanka has two seasons for rain
those are Northeast (December to March) monsoons and Southwest (June to October).
This industry has many changes and developments. The growth rate of Sri Lanka’s aquarium
fish industry is a healthy 4.7% with our share of 2.7% of the US$412 million world market.
In time to come, the aquarium fish industry in Sri Lanka will look to expand their foothold by
breeding high value marine ornamental fish including excising new varieties and rare species
endemic to the tropical island.
World ornamental fishery Industry
This industry has highly demanded all around the world. The industry worth US$3 billion
and export worth is US$200 million.
Market leader of this industry is Singapore and leading importer of the industry is USA. USA
has 25% of market shares.
World ornamental fishery industry has many trends and divers are finding new ways to catvh
fish without harming the environment. New methods are introduced to importer, buyer and
retailers.
Further many other industries are supported by ornamental fish industry.
Mainly this is considered as two categories fresh water and marine. We can see as a
parentage of the world demand of fishery Industry 90% for fresh water and 10% for marine
fishers. We can show this by using below chart.
Source by http://aquafind.com/articles/Culture-of-Ornamental-Fishes.php
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Figure 01
90%
10%
Word demand for fishary
Fresh water
Marine
2.2 Market Feasibility
When we describe about market feasibility we can describe as whether a product or service
can sustain in a specific market or not as well whether it is capable of generating financial
surplus for the firm or not.
When we are doing market feasibility we have to consider below things,
- Description of the industry
- Current market analysis
- Competition or purpose of competing products
- Anticipated future market potential
- Potential buyers & sources of revenues
- Sales projections
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When we describe about the industry, I explained about previous paragraph with more
details.
Export Market
Mainly we can describe about market demand and supply. Firstly we can explain about Sri
Lankan Market about this industry. Sri Lanka exports many countries and many producers,
retailers and exporters are in our country. Sri Lanka fulfills 2% of the world demand.
Sri Lankan customers we can show as below with percentages,
Figure 02
USA (23%)
Japan(14%)
Germany(13%)
UK(13%)
France(8%)
Italy (6%)
Fishary Exportors of Sri Lanka
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