1. Development of shrimp aquaculture
in the rural area through
establishment of a model of cluster
shrimp farm and the involvement of
an experienced investor, engaged in
shrimp farming to manage and
strengthen the cluster farm

2. Back ground of shrimp aquaculture industry
in Sri Lanka
• The shrimp aquaculture industry initially
emerged in the Eastern Province
• It collapsed due to civil war
• The industry was revived in the north western
province in 1980
• The industry recorded its peak economic
performances in the year 2000 by earning Mn
US 69.4 worth of foreign exchange – 4855 mt

3. Continue…..
• Still major threat is WSD and it was firstly
appeared and affected shrimp aquaculture in
1996.
• Shrimp production came down up to 1570 mt
in 2005
• Through implementation of Zoning, crop
calendar, BMPs, stake holder consultation
regulation etc. now industry is sustained
• Shrimp production in NWP of Sri Lanka in
2011 is 4100mt

4. Continue…..
• National Aquaculture Development Authority
of Sri Lanka (NAQDA) which comes under
purview of Ministry of Fisheries and Aquatic
Resource Development is the main
government organization responsible for
development of Inland Fisheries and
aquaculture in Sri Lanka

5. Continue…..
• To expand shrimp aquaculture industry to
Batticaloa District, a zonal plan was developed.
• It was realized that need of intervention of
experienced investors for rebuild shrimp
aquaculture industry again in the District and it
is way forward.

6. Proposal
• It was proposed to construct infrastructure
facilities needed for a block out a area of
village namely Wattawan , comprising of 50
ha, to develop the infrastructure such as
roads, common inlets and outlets for water
intake and release, sedimentation canals and 3-
phase electricity to facilitate shrimp farming
and established a cluster shrimp farm system

7. • The project was funded by Post Tsunami Coastal
Rehabilitation & Resource Management
Programme and Post Tsunami Livelihood Support
& Partnership Programme Under the IFARD
• The cost for the development of infrastructure
facilities - SL Rs 71 million
(Common reservoir, canals, sedimentation
area Roads, electricity)

8. Conceptual Design

9. Preparation of Conceptual Design

10. What is Cluster Farming System in Shrimp
Aquaculture
In sustainable systems, there is a balance in
economic, environmental and social aspects. With
respect to Economic sustainability in shrimp farming
more emphasis should be given to control of diseases
and efficient use of inputs. Environmental
sustainability requires the efficient use of
resources, including farming within the carrying
capacity of the ecosystem and avoidance of
irreversible damages to the environment due release
of untreated effluent, heavy usage of chemicals and
drugs, pumping of bore water etc. Social sustainability
requires cohesive community participation and

11. • Best management practices and also
the community participation are the
main driven components of the
Cluster Farming System in Shrimp
Aquaculture

12. Project Implementation
1. Identification of beneficiaries
NAQDA together with the Divisional Secretary
has identified 27 beneficiaries.
Criteria for the selection of beneficiaries were
as follows;
• Willingness to engage in shrimp farming
• Should belong to the coastal communities affected
by Tsunami
Continue …..

13. • Priority has been given to coastal community affected by
Tsunami in Vakarai Divisional Secretary’s Division
• Second priority has been given to the Tsunami affected coastal
community of the District
• Experience in shrimp farming
2. Distribution of land
• 0.5 ha has been given to a beneficiary under an annual
permit by divisional secretary
• Land area of the model farm is owned by NAQDA and
transfer to the investor
• Land area for infrastructure is owned by NAQDA
3. Established Cluster Farm System
• This cluster system has two major components
a) model farm b) cluster farm.
Continue …..

14. NAQDA together with Divisional Secretary selected a suitable
investor.
Criteria for selection of an investor
• Financial capability to provide working capital for
cluster
• Financial capability to construct model farm and
operation of model farm.
• Experience in shrimp farming
• Willingness to share knowledge
• Ability to market the product
• Priority has been given to the investor from the same
area
• Willingness to share Profit (50:50)

15. • It was formed an Aquaculture Development
Society which should be registered with NAQDA
under the ‘Regulations for Registering of
Aquaculture Development Committees’ under
NAQDA Act. This society membership was
comprised of all the beneficiaries.
• A company was formed with the investor and the
society as shareholders.

16. Registration of
Aquaculture
Societies
Regulations
2009

17. • Infra structure facilities which are required for cluster
system were developed.
• It was realistic that Tsunami affected people cannot bear
cost of pond construction . Therefore, arrangements
were made to provide 0.5 million to the beneficiaries
under the credit line of a Government Bank (Bank of
Ceylon) as a loan.
• The funds were transferred to the society by the Bank.
This amount and the portion of land in which ponds
constructed were the contribution of the beneficiaries to
the company. Each beneficiary signed an MOU with the
Aquaculture Development Society.

18. Continue …..
• The company is responsible for construction of
ponds. The investor supports the beneficiaries for
grow out by providing seed, feed, technical advice
(working capital). The several key persons of the
society, beside the investor, are also being Co-
Directors of the company. Another member of the
Director Board was appointed by NAQDA to
ensure good governance of the company.

19. Tri Party Agreement
King Aqua Services (Pvt) Ltd
Vattavan Vakarai Shrimp Farmers’
Association
Members

21. Structure of Cluster Farm System at Wattavan
village in the Batticaloa District of the Eastern
Province of Sri Lanka
NAQDA SFMEU Divisional
Secretary
DOFAR
Main
society for
cluster
Investor
Chairman Secretary Treasurer Other members

22. Government
Investor /
Beneficiaries

23. Input by Government
• 50 ha land
• Development of access roads
• Development of common inlet and
outlets for water inflow and outflow
• Development of common
sedimentation canals/ponds
• Development of water storage area
• Supply of electricity

24. Vattawan
Common Inlet
Sub Inlet Canal
Canal
Water Storage

25. Vattawan
Outlet Canal
Roads
Electricity

26. Out put of the project
• Livelihood generation for around 200
families rural(coastal ) communities
• Coastal communities trained in shrimp
farming
• Production of 200 Mt of raw shrimp for
the export market

27. Project cost borne by the investor/cluster
farmer
• Capital Investment Cluster farm - SL.Rs. 35million /Bank, Beneficiaries
Model Farm - SL.Rs. 15 million/ Investor
• Working Capital Cluster farm - SL.Rs. 32 million/ Investor
Model Farm - SL.Rs. 10 million/ Investor
• Expected Total Profit from one crop
Cluster farm - SL.Rs. 25 million
Model Farm - SL.Rs. 5 million

28. Conclusion
• Establishment of cluster farming system
described above will demonstrate the benefit of
such a system
• It is anticipated that rural communities in other
areas suitable for shrimp farming will adopt such
a system in order to overcome constraints such as
lack of technology, lack of technology, lack of
entrepreneurship, lack of management capacity
and the capital.

29. Thank You