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Friday September 4th, 2026

Fishing in troubled waters: Sri Lanka’s war-hit fishermen frustrated over Indian bottom trawling

ECONOMYNEXT – Resettled after the end of Sri Lanka’s 26-year war in 2009, Annalingam Annarasa had vowed to develop his family profession of fishing. Twelve years later, he struggles to continue his livelihood in the resettled Northern coastal island of Kayts.

The reason is bottom trawling by fishermen from neighbouring India.

The banned method of fishing still continues, and local fishermen are the most affected – fishermen who have just started to prosper from a livelihood they had been long denied as a result of being displaced by the war, fishermen who have finally allowed to resettle in their original fishing villages.

“We have lost around 40 percent of our daily fish catch due to bottom trawling by Indian fishermen,” Annarasa told EconomyNext over the phone.

The 43-year-old, who is President of the Federation of Jaffna District Fishermen Societies, says the local fishermen in Jaffna are deprived of fishing resources as Indian bottom trawling has reduced fish populations in Sri Lankan waters. The banned practise results in even fingerlings being caught while also damaging fishing nets used by local fishermen.

“Around 500 fishing nets have been damaged so far this year in Kayts,” he said, referring to an area where a number of small islands is situated in the Gulf of Mannar to the north-northwest of mainland Sri Lanka and to the south-southwest of the Jaffna peninsula.

Bottom trawling is banned in Sri Lanka and the law is strictly implemented to maintain the sustainability of the fishing industry by preventing fingerlings being destroyed.

Thousands of fishermen like Annarasa who are rebuilding their lives after the end of a decades-long war are now desperate in the face of increased bottom trawling by Indian fishermen.

Thousands of Sri Lanka’s northern fishermen have urged the government to make a final stand on the Indian trawler issue as the encroachment and the damage to their fishing equipment are hindering their livelihood and challenging Sri Lanka’s post-war resettlement efforts.

Around 800,000 people were displaced during the civil war that lasted from 1983 to 2009. The fighting escalated in Jaffna district in 1990, which saw many turn to state-run welfare centers or move to live with family elsewhere.

Bottom Trawling

Bottom trawling is a type of fishing net that’s pulled along the seafloor. Fishermen commonly use the technique to catch shrimp and bottom-dwelling fish.

However, in addition to targeting fish, the nets also catch a variety of ocean life that’s usually thrown back into the water dead or dying.

Dragging heavy gear across the seabed can also damage sensitive seafloor habitat. The harmful effects of bottom trawling on bottom-dwelling organisms and their habitat can be reduced by modifying the fishing gear or limiting the trawling area.

Annarasa says a fisherman needs up to 600,000 rupees to start fishing and if a net is damaged, the fisherman needs a quarter of that investment for repairs.

“These fishermen use kerosene oil for their boats to cut the costs, and we have lost our income due to bottom trawling. Our fishing community is now reduced to 17,000 from 23,000 in the past few years,” Annarasa said.

After many failed discussions with India on its fishermen illegally entering and using bottom trawl nets in Sri Lankan waters in Palk Strait, the fishing community in Jaffna launched a flotilla protest on October 17, demanding that the government strengthen existing laws and protect their own fishermen and bring to a stop the damage caused to their livelihood as well as the environment.

Resettlement is one of the key issues India has been pushing Sri Lanka towards since the end of the war as thousands of displaced Sri Lankan Tamils are still living in refugee camps in the South Indian state of Tamil Nadu.

Many international aid agencies including the United Nations Development Program and the Canadian International Development Agency (CIDA) have helped northern fishermen restart their livelihood after resettlement.

Back to zero?

The resettled fishermen had nothing but the skills of fishing and fish resources in the northern sea. They started from zero and now they are compelled to hit reset because most of their fishing gear is damaged.

“We need the government to strengthen the existing laws that already states entering into our waters and using trawler boats are illegal. The government must alsoe provide compensation for the damaged boats and provide a mechanism for fishermen who lost their livelihoods and are unemployed as a result of this,” N V Subramanian, Chairman of the Northern Fishermen Association, told EconomyNext.

Sri Lanka amended provisions in the Fisheries and Aquatic Resources Act No 2 of 1996 in both 2017 and 2018 to charge foreign fishermen who trespass into Sri Lanka’s waters and are involved fishing without a permit, entering into territorial waters without keeping the fishing gear stowed in their vessels and using banned bottom trawling nets towed by a mechanised boat.

Most fishermen urged the government to implement the amended act strictly. Already the amendment had angered Indian fishermen.

Gajendrakumar Ponnambalam, an opposition lawmaker raised the issue in the parliament and said on July 22 alone 277 fishing nets in a small fishing village in Jaffna were damaged, with total damage estimated at 4 million rupees.

“Indian fishermen have been encroaching into Sri Lanka waters. These are fishermen who come in large trawlers and they have literally destroyed the fishing assets of the fishermen of the Northern Province, particularly from Mannar to Jaffna and Mullaitivu,” he told the parliament on August 05.

Vincent Arulnathan, president of Annai Velangkanni Fishermen Association in Mullaitivu, expects another gloomy month in November as Indian trawler boats can be seen as near as 1 kilometre from the shore.

“In November, it is shrimp season and these Indian trawlers will come for shrimp resources depriving many of our fishermen,” he told EconomyNext over the phone.

“Our livelihood is fishing and it is now being destroyed. Resettlement hardly means anything for us without our livelihood, and we only know fishing.”

The fishing issue between the two neighbours began when India and Sri Lanka signed four Maritime Boundary Agreements between 1974 and 1976 that defined a mutual understanding of the international maritime boundary between the two countries. Katchatheevu Island, famous for its annual St Anthony’s festival, was ceded to Sri Lanka by India without consulting the Tamil Nadu state government.

Since then, Indian fishermen have only been allowed to use the island for resting, drying their nets and for the annual church feast, but not for fishing.

Since 2009, after the end of the war, the Sri Lankan navy has tightened surveillance of its northern maritime boundary to halt a potential return of Tamil insurgents, resulting in increasing the number of Indian fishermen arrests, even as Sri Lankan authorities argue that they are simply protecting the maritime boundaries of the country against poaching and are securing the livelihood of Sri Lankan fishermen.

Lingering bilateral discussion

President Gotabaya Rajapaksa when he met Indian Foreign Secretary Harsh Vardhan Shringla last month in Colombo pointed out that the long standing problems faced by the fishermen of the two countries could be resolved by identifying immediate solutions to the existing problems and providing the benefits rightfully owed by the fishing community.

Fisheries Minister Douglas Devananda also expressed his displeasure over the illegal fishing of Indian fishermen in Sri Lankan waters sabotaging the livelihood of Sri Lankan fishermen and ruining the aquatic resources in Sri Lanka, when he met the visiting Indian Foreign Secretary.

Minister Devananda had told the Indian official that a large number of Indian fishing trawlers enter the Sri Lankan waters daily for illegal fishing amid strong protest by Sri Lankan authorities.

The Minister said that he had submitted a legal draft to the Indian authorities with a proposal to set up an India-Sri Lanka Joint Coastguard to halt the Indian bottom trawling during his visit to India as a member of the official entourage headed by Prime Minister Mahinda Rajapaksa in 2020.

State Minister of Fisheries Kanchana Wijesekera said Sri Lanka has taken steps to ban bottom- trawler fishing practices and India too should do the same with its own fisheries act.

“So far we have not got positive feedback on that,” Wijesekera told EconomyNext.

Sri Lanka has also requested both countries’ coastguards to work together to find a mechanism to prevent either party crossing the border. Sri Lanka has already taken steps to use a Vessel Monitoring System (VMS) in all the vessels and has requested India to do the same.

“If the Indian fishing ministry implements this, it could prevent illegal fishing,” the state minister said.

“According to the laws in the country, the vessels that cross our border or are engaged in illegal fishing: those vessels will be confiscated, the fishermen will be released, but not the vessels,” he said.

Many fishermen say they are considering moving to some other area in search of new jobs though they have no idea what to do for a living besides fishing. (Colombo/Nov02/2021)

Sri Lanka’s ex–President Mahinda Rajaopaksa’s son arrested over Airbus bribe deal 

Namal Rajapaksa being sworn in before President Gotabaya Rajapaksa on June 03, 2021

ECONOMYNEXT – Sri Lanka’s opposition legislator and son of former President Mahinda Rajapaksa was arrested by the island nation’s anti-graft commission over a 2014 Airbus deal amid allegations of accepting Rs. 100 million bribe.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested Namal Rajapaksa, former sports minister, after a five-hour questioning regarding the allegation in a transaction related to the purchase of an Airbus aircraft for the state-run SriLankan Airlines when his father was the President.

He was later produced to court and remanded until September 18.

Namal Rajapaksa, a day before his arrest, told EconomyNext that the government was trying to arrest him to hide their failure in fulfilling election promises.

“I am not worried about arrest. But eventually they will have to prove it,” he said.

The CIABOC said Rajapaksa was questioned over the allegations and the “arrest was made in connection with the investigation being carried out based on the statement of the relevant Sri Lankan businessman and statements given to the Commission by officers of the Airbus company in France who came to the Commission, as well as documents and other information gathered in this regard.”

A British court found that the French aircraft manufacturer paid US$2 million to a shell company set up in Brunei under the name of former SriLankan Airlines CEO Kapila Chandrasena’s wife.

Chandrasena found dead in May this year under mysterious circumstances when he faced arrest over the same case.

Airbus deal is one of the controversial corrupt deals that took place under former President Mahinda Rajapaksa’s administration, and extensive investigations have been carried out following the British court’s revelations.

The CIABOC in March said that Chandrasena conspired with his wife and others to set up a shell company in Brunei Darussalam in his wife’s name, opened a bank account in Singapore under that company’s name, and received a sum of EUR 1,454,645.54 as bribe money from the European Aeronautic Defense and Space Company.

It said Chandrasena transferred the bribe money to his own account at the Commonwealth Bank of Australia and to several other individuals, including the then Director General of Sri Lankan Airlines.

Chandrasena and his wife, Priyanka Wijenaike, were first remanded in February 2020 after the British court found that Airbus had paid $2 million to Biz Solutions Inc., a shell company set up in Brunei in 2012.

Investigators revealed the money was transferred to the company’s Singapore account.

Chandrasena served as the CEO of SriLankan from July 2011 to February 2015, during former President Rajapaksa’s second term.

British court documents in 2020 revealed that his wife acted as an agent for the procurement of Airbus aircraft, and Airbus offered a bribe of $16 million.

In March last year, the Criminal Investigation Department (CID) of Sri Lanka Police questioned Namal Rajapaksa over receiving commission from the Airbus deal when his father was in power.

Junior Rajapaksa was questioned for over four hours based on a statement given by a state witness who had been questioned for his reported involvement in the money laundering.

The witness, a well-known former close ally of Rajapaksa and a businessman, had said that he facilitated the transfer of cash from the Airbus deal and handed it over to Namal Rajapaksa.

Namal Rajapaksa has denied the allegations and said the new government is attempting to attribute all unexplained wealth cases against the Rajapaksas.

International and local investigations have clearly pointed towards the involvement of bribes and misappropriations in the 2013 Airbus deal. (Colombo/September 04/2026)

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US FMC officials to visit Sri Lanka to advance trade interests

ECONOMYNEXT – US Federal Maritime Commission (FMC) Chairman Laura DiBella and FMC Commissioner Robert J Harvey will visit Sri Lanka to advance American trade interests, the US Embassy said.

The visit is “to advance US-Sri Lanka cooperation on maritime trade, investment, and the shipping networks connecting American businesses and consumers to markets across the Indo-Pacific”.

Sri Lanka plays an important role in keeping global trade moving, the embassy said.

“Over 80 percent of the containers moving through Colombo continue on to destinations around the world — a remarkable illustration of Sri Lanka’s role at the heart of Indian Ocean shipping,” US Ambassador Eric Meyer said.

“DiBella’s visit recognizes the importance of that role and provides an opportunity to deepen our cooperation with the people and institutions that keep this vital trade moving across the Indo-Pacific.

“Secure and efficient shipping creates opportunities for American businesses, strengthens Sri Lanka’s position as a regional hub, and supports prosperity in both our economies.”

DiBella and Harvey will meet with government and maritime leaders during the visit from September 6–10.

DiBella will also address the Colombo International Maritime and Logistics Conference and Harvey will serve on a panel.

The Federal Maritime Commission is the independent federal agency responsible for regulating the US international ocean transportation system for the benefit of US exporters, importers, and consumers. (Colombo/Sep4/2026)

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Sri Lanka urges farmers to change cultivation timetable, irrigation due to El Nino

ECONOMYNEXT — Sri Lanka authorities have urged farmers to complete sowing by mid-October to withstand heavy rains and prepare for an El Niño-driven dry spell early next year.

The island nation is targeting approximately 830,000 hectares for paddy cultivation in the upcoming 2026/27 Maha season.

The advisory follows meteorological forecasts indicating above-average rainfall across the island in October and November due to prevailing El Niño conditions and a positive Indian Ocean Dipole.

Rains are expected to drop sharply from January as temperatures climb.

Department of Agriculture Director General G G Wickramasinghe urged farmers to begin land preparation immediately with late September rains and finish sowing between October 15 and October 25.

Sowing early ensures crops are roughly a month old before intense November downpours arrive, preventing flood damage and allowing 3.5-month varieties to be harvested in late January before the dry spell sets in.

She noted that strict water discipline this season is vital to guarantee a successful Yala season in 2027.

To conserve water, the department advised farmers to avoid long-duration paddy varieties and adopt Alternate Wetting and Drying (AWD) irrigation, introduced by the Rice Research and Development Institute in Batalagoda to save roughly three full irrigation turns.

“After establishing the crop, keep the field flooded for about two weeks, and then allow the water to gradually deplete over the next two weeks,” Wickramasinghe said.

Director General of the Department of Meteorology in Sri Lanka is A L K Wijemannage said the World Meteorological Organization has indicated near-100 percent certainty that the El Niño event will persist through February, peaking between October and November.

“Moving into next year — particularly January, February, and March — temperatures will climb further while rainfall drops, leading us into a distinctly dry and warm period,” Wijemannage said.

To protect water reserves and cut imports, the Department of Agriculture is urging water-deficit paddy tracts to transition to Other Field Crops (OFCs) such as maize, green gram, cowpea, and finger millet.

Farmers shifting to OFCs on paddy lands will remain fully eligible for fertilizer subsidies, the officials said. (Colombo/Sep4/2026)

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Sri Lanka stocks trend up Friday, Kotagala to absorb subsidiary

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading up on Friday morning, CSE data showed, with the benchmark All Share Price Index moving up 0.37 percent.

The ASPI was up 79.28 points at 21,474.39, while the more liquid S&P SL20 was up 0.47 percent, or 27.95 points, at 6,023.20.

Positive contributors to the ASPI were Hatton National Bank (up 0.66 percent at 379.75 rupees), Dialog Axiata (up 0.86 percent at 46.90 rupees), Royal Ceramics Lanka (up 2.51 percent at 49.10 rupees), Ceylon Cold Stores (up 1.85 percent at 124.00 rupees), Sunshine Holdings (up 2.08 percent at 29.40 rupees), and Sampath Bank (up 0.18 percent at 139.00 rupees).

Commercial Development Company (down 2.51 percent at 35.00 rupees) was a top negative contributor.

Market turnover was 248.3 million rupees. Materials led turnover with 108.98 million rupees.

Kotagala Plantations said it had resolved to amalgamate with its 99.999 percent owned subsidiary, Rubber and Allied Products (Colombo), subject to shareholder approval.

Under the proposed amalgamation, minority shareholders holding a combined 9 shares in Rubber and Allied Products will receive a cash consideration of 8.10 rupees per share, while the parent company’s shares will be cancelled.

Kotagala Plantations shares were trading up 1.23 percent at 8.20 rupees. (Colombo/September04/2026)

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Benelux sandbox can boost Sri Lanka’s EU trade: Dutch envoy

SLBBC ExCo for 2026/2027 – (Seated L-R) Deputy Ambassador Iwan Rutjens, Ambassador Wiebe de Boer, Farhath Amith, President, Shameel Mohideen, Snr VP, Shiran Fernado, Sec Gen/CEO Ceylon Chamber of Commerce. (Standing L-R) Pasandi Senara, Secretariat of The Ceylon Chamber of Commerce, Hiwin Chandrasekara, Dr D S K Pathirana, P M Abeysekara, Suwaneetha Senanayake, Consul to Luxembourg, Somasena Mahadiulwewa, Acting Director General of Commerce, Andre Fernando, Asela Samarapperuma.

ECONOMYNEXT – The Benelux union could be used as a sandbox for Sri Lankan exporters’ further European integration, including its role in linking to the Port of Rotterdam, Ambassador of the Netherlands Wiebe de Boer has said.

Sri Lanka’s GSP+ access remains in place until 2029, with a two-year window to reapply under a new regime, he noted, and “expressed hope that Sri Lanka could eventually progress from GSP+ to a full Free Trade Agreement with the EU, similar to the EU-India FTA signed this year.”

He raised concerns over bureaucratic hurdles facing entrepreneurs, citing delays in quality-control clearances and restrictive foreign investment caps.

He was speaking as chief guest at annual general meeting of The Sri Lanka-Benelux Business Council (SLBBC) of The Ceylon Chamber of Commerce.

Council President Farhath Amith called for continued Benelux support to extend Sri Lanka’s GSP+ status by a further five years, noting key sectors for collaboration, including renewable energy, floriculture, agriculture and agro-processing (including GI-certifiable crops such as cocoa and vanilla), eco-tourism, the coconut industry, and healthcare.

The process of selecting Sri Lankan spices and agricultural commodities for GI Certification has been very slow over the years, he said, causing the country to miss out on expanding export market opportunities to the EU.

“With the Netherlands serving as the gateway for the floriculture industry in the EU, Sri Lanka should be considered as the hub in South Asia for the tropical ornamental plants and cut-foliage trade,” he said.

Amith, Director of Fanam International, was re-elected president for the 2026/2027 term, while Shaameel Mohideen (Spillburg Holdings) and P M Abeysekara (Vinu International Trading Company) were reappointed senior VP and vice president respectively.

The council elected committee members representing Andrew The Travel Company, MAC Holdings (Pvt) Ltd, Maliban Healthcare, Propylon One Private Limited, Sri Lanka Technology Development Corporate Society, and Thames International Educational Consultancy, Sajith Wijenayake, (Aitken Spence Travels) will continue to serve on the committee as immediate past president. (Colombo/Sep4/2026)

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Sri Lanka rupee at 328.20/30 to US dollar spot, bond yields higher

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 328.20/30 to the US dollar in the spot market on Friday, from 328.45/60 the previous day, while bond yields were quoted slightly higher, dealers said.

A bond maturing on 15.05.2030 was quoted at 10.45/55 percent.

A bond maturing on 15.10.2030 was quoted at 10.73/78 percent, up from 10.68/75 percent.

A bond maturing on 01.10.2032 was quoted at 11.05/15 percent.

A bond maturing on 15.01.2033 was quoted at 11.20/30 percent.

A bond maturing on 15.10.2034 was quoted at 11.75/80 percent, up from 11.65/75 percent.

A bond maturing on 15.08.2036 was quoted at 11.83/90 percent, up from 11.80/90 percent.

The telegraphic transfer rate for the dollar was 323.90 buying 332.90 selling; the euro was 374.3715 buying 388.1523 selling; the pound was 437.4812 buying, 451.5896 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.32 percent, or 67.83 points, at 21,462; while the S&P SL20 was up 0.46 percent, or 27.68 points, at 6,022. (Colombo/Sep4/2026)

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