Abstract Exporting of ornamental fish is much lucrative industry in today. Sri Lanka is one of the important country in that contex

Herath H M T N B

Wijewardene L N

CiteSeerX

 International Research Journal of Environment Sciences________________________________ ISSN 2319–1414 
Vol. 3(8), 40-45, August (2014)  Int. Res. J. Environment Sci. 
 
 International Science Congress Association       40 
Ornamental Fish trade in Sri Lanka: An Economic Perspective 
Herath H.M.T.N.B. and Wijewardene L.N. 
Dept. of Fisheries and Aquaculture, Faculty of Fisheries and Marine Sciences and Technology, University of Ruhuna, Matara, SRI LANKA 
Available online at: www.isca.in, www.isca.me 
Received 28th June 2014, revised 30th July 2014, accepted 3rd August 2014 
 
 
 
Abstract 
Exporting of ornamental fish is much lucrative industry in today. Sri Lanka is one of the important country in that context 
by having significant market share in world trade. In this paper an economic assessment of ornamental fish trade in the 
decade of 2000-2010, with special reference to the Sri Lanka was carried out. Annual growth rate of ornamental fish trade, 
compound annual growth rate, and economic measures such as Revealed comparative advantage (RCA), Relative import 
advantage (RMA), Relative Trade advantage (RTA), and changes in the unit value of ornamental fish over the decade of 
2000-2010 were studied. Relative Trade advantage and Relative competitive advantage results indicated that Sri Lanka 
has huge potential over the exporting of ornamental fish and it was competitive although there were fluctuations in the 
annual growth rate. Furthermore it is recommended that, Expansion of ornamental fish exporters, subsidies in the industry 
may be impetus over the increase export earnings. 
 
Keywords: Economic analysis, revealed competitive advantage, relative trade advantage, ornamental fish, Sri Lanka. 
 
Introduction 
Earnings of ornamental fish exports provide significant source 
of income to exporting countries, though there are limited 
countries actively involved in that. Data on the 
UNCOMTRADE exemplifies that total world ornamental export 
value in year 2010 was US $ 337,082,558 meanwhile global 
ornamental fish import trade value in same year was US $ 15, 
509, 0001. UNCOMTRADE data also reveals that Singapore, 
Spain, Japan, Malaysia, and Indonesia predominant in exporting 
ornamental fish to the world. Major importers in the year 2010 
were consisted with the USA, UK, Singapore, Germany, and 
France respectively according to their import value. In overall it 
is growing industry which has capability in growing 
consistently2. 
 
Sri Lanka, as a country which has highest export potential in 
exporting ornamental fishes to world, gain immense success in 
this industry. In year 2000, it represents 4.2% in total world 
market share which was among the 7th place3. Sri Lankan 
ornamental fish industry began in early 1920 and 1930s. Since 
the increment of exporters from Colombo in 1950s, trade of fish 
was amplified4. In addition to that Sri Lanka encompasses with 
the number of unique environments it has a highest capability of 
developing this sector in the economy.  
 
In Sri Lanka two sectors of ornamental fish trade can be 
identified. This includes the marine segment as well as the fresh 
water segment. It has been estimated that 50% to 60% of 
ornamental fish exports are wild-captured marine fishes while 
remainder is fresh water fishes5 52 species of fish from 21 
families were collected from freshwater habitats and exported 
from Sri Lanka during the 2005 and 20066. Major exporting 
species is Monodactylus argenteus. In addition to that major 
ornamental export marine fish from Sri Lanka is the Dascyllus 
trimaculatus
5
. 
 
In this research the main objective was to find out the export 
competitiveness of the Sri Lankan ornamental fish market and 
find out the relevant modifications to sustain the industry in 
economical feasible manner in obtaining higher share in world 
market furthermore. 
 
Material and Methods 
Data with relation to the exporting and importing of ornamental 
fish in Sri Lanka and world were obtained from the United 
Nations commodity trade statistics database 
(UNCOMTRADE)1. Data with relation to the Sri Lankan and 
world total exports in considering years have been obtained by 
the World trade organization statistical database (WTO)7. In this 
Research data over the period of 2000 to 2010 were taken into 
the consideration. 
 
From the obtained value the following indices were calculated 
in order to identify the behavior of export ornamental fish trade 
in Sri Lanka.  
Annual growth rate =  
Exporting value of ith year- Exporting value of jth year 
                                   Exporting value of jth year 
Where j and i is consecutive years and i>j 
 
Compound annual growth rate is given by:  
Compound annual growth rate8 = ((Last year/ First year) ^ (1-
1/n-1))-1 
 
In addition to that to find the export competitiveness of the 
ornamental fish export from Sri Lanka, index developed by the 
Balassa were used.  
International Research Journal of Environment Sciences______________________________________________ ISSN 2319–1414 
Vol. 3(8), 40-45, August (2014)      Int. Res. J. Environment Sci. 
 International Science Congress Association             41 
RCA = (Xi,j / Xw,j) / (Xi. tot / Xw. tot)9 
 
Where, RCA= Balassa index/ Revealed comparative advantage, 
Xi,j denoting country i’s export of product j, Xi, tot denoting 
country i’s total exports, Xw, j denoting world’s export product 
j; and Xw, tot denoting total exports in the world. 
 
Revealed Comparative Advantage is used widely owing to its 
simplicity in calculation and easiness in interpretation10. If RCA 
>1, comparative advantage is revealed. If RCA <1, the country 
normally possess the relative disadvantage status. The index, by 
definition, is sensitive to both the number and classification of 
countries and industries11. In some occasions RCA sometimes 
provide incomparable results. In such cases revealed symmetric 
comparative advantage (RSCA) to evaluation of export 
competitiveness12. 
 
RSCAij = [RCAij-1] / [RCAij+1] 
 
In addition to that to find out whether particular country has, 
advantage over importing of particular product, Revealed 
Import Advantage has been used. 
 
RMA = (M i,j / M w,j) / (M i. tot / Mw. tot), RMA= Relative 
import advantage, Mi, j= Importing value of ornamental fish for 
Sri Lanka, Mw, j=World ornamental fish import value, Mi, tot = 
Total Merchandise import value of Sri Lanka, Mw, tot = Total 
Merchandise import value of world. 
 
By using the Revealed comparative Advantage and Revealed 
import Advantage value Relative Trade advantage (RTA)2 of 
particular country can be evaluated as,  
RTA = RCA-RMA 
 
Countries with the positive values of RTA stated higher 
potential in exporting particular product to rest of the world and 
countries with lower and negative RTA exemplifies that those 
countries import much of that product outside from world. 
In addition to the above calculations, changes of market share of 
ornamental fish of country also studied2. 
 
Changes in market share=   
 Countries export of product at time p/ world exports 
Countries export of product at time (p-1)/ world exports at time 
(p-1) 
 
Results and Discussion  
With relation to the annual growth rate of the ornamental fish 
export from Sri Lanka, figure-1, indicated that fluctuation in 
different magnitudes over the years. 
 
Lowest annual growth rate was shown in the year 2001 and 
peak value was recorded in the year 2003. From the peak value 
there was fluctuation in the ornamental fish exporting values 
and again in year 2007 and it shows the declining in growth rate 
of the exporting. Compound annual growth rate of the industry 
shows that there was significant lower growth rate in the 
industry as shown in figure-2. From 2005 onwards industry 
show positive growth rate but it has a declining trend. This same 
pattern was obtained by the Jayalal and Ramachandran8. 
 
Relative comparative advantage over the decade of 2000-2010 
in Sri Lanka shows that Sri Lanka has highest competitiveness 
of exporting of ornamental fish to rest of the world according to 
figure-3. RCA values over the decade was significantly higher 
than 1 and highest value was recorded in the year 2006. In this 
year Sri Lanka has recorded US $ 85.39 million export to the 
world. In the period of 2003 recorded the lowest 
competitiveness and respective RCA value for that year was 
36.09. During the year 2000-2010 RMA values vary between 
the 0.92-1.29. RTA values over the decade changes from the 
34.8 to 52.82. Peak value of the RTA was recorded in the year 
2006 and lowest value was recorded in the year 2003 as 
represented in table-1. 
 
 
 
Figure-1 
Annual growth rates in ornamental fish trade in Sri Lanka (2000-2010) 
-25
-20
-15
-10
-5
0
5
10
15
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
A
n
n
u
al
 g
ro
w
t 
ra
te
 
Years
International Research Journal of Environment 
Vol. 3(8), 40-45, August (2014) 
 International Science Congress Association
Compound annual growth rate of ornamental fish industry in Sri Lanka
 
RMA, RCA and RTA values changing from year 2000
Trade index parameters of ornamental fish trade in Sri Lanka (2000
Year RCA 
2000 52.53 
2001 41.59 
2002 39.01 
2003 36.09 
2004 44.56 
2005 46.96 
2006 53.91 
2007 45.35 
2008 52.01 
2009 45.10 
2010 42.96 
-0.03
-0.025
-0.02
-0.015
-0.01
-0.005
0
0.005
0.01
0.015
2000 2001
co
m
p
o
u
n
d
 a
n
n
u
al
 g
ro
w
th
 r
at
e
Sciences________________________________________
     
 
Figure-2 
Figure-3 
-2010 
 
Table-1 
-2010)
RSCA RMA 
0.96 0.99 
0.95 1.13 
0.95 1.23 
0.94 1.21 
0.95 0.92 
0.95 1.19 
0.96 1.09 
0.95 1.29 
0.96 0.95 
0.95 1.26 
0.95 1.27 
2002 2003 2004 2005 2006 2007 2008 2009
Year
______ ISSN 2319–1414 
Int. Res. J. Environment Sci. 
            42 
 
 
 
 
RTA 
51.55 
40.46 
37.79 
34.88 
43.64 
45.77 
52.82 
44.05 
51.07 
43.85 
41.69 
2010
International Research Journal of Environment 
Vol. 3(8), 40-45, August (2014) 
 International Science Congress Association
Considering about the changes in market share/ export 
competitiveness index it was apparent that peak market share 
changing was recorded in the year 2000 and relevant value was 
1.36. Since then it was reduced and lowest export 
competitiveness index was recorded in the year 2003 and that 
was 0.87. In the years of 2003, 2004, 2005 and 
Sri Lanka shows export competitiveness below the value of 1. 
This illustration is exhibited in the figure-4. 
 
Changes in the unit value over the 2000-2010 decade.
value was recorded in the year 2008 and lowest value was 
recorded in the year 2000 as exemplify by figure
 
Export competitiveness index for Sri Lankan ornamental fish industry 
 
Unit value changing of exported ornamental fish (2000
0
2
4
6
8
10
12
14
2000 2001
u
n
t 
v
al
u
e 
($
/K
g
)
Sciences________________________________________
     
 
2007 and 2009 
 Peak unit 
-5. In year 2000 
Sri Lanka has earned 7.38 US $/ Kg and in year 2010 it was 
recorded as the 11.34 US $/ Kg. the pattern of unit value 
changing shows the exponential increases over the decade.
 
Discussion: Sri Lanka, being a tropical island in Indian Ocean, 
possess wide array of environments which are suitable for 
ornamental fish culture. In Sri Lankan perspective both 
freshwater and marine water ornamental fis
the decades. This includes the wild captured freshwater and 
marine water species and culture based ornamental fish species 
as well.  
Figure-4 
(2000
Figure-5 
-2010) 
y = 7.310e0.041x
R² = 0.773
2002 2003 2004 2005 2006 2007 2008 2009
Year
______ ISSN 2319–1414 
Int. Res. J. Environment Sci. 
            43 
 
h were exported over 
 
-2010) 
 
2010
International Research Journal of Environment Sciences______________________________________________ ISSN 2319–1414 
Vol. 3(8), 40-45, August (2014)      Int. Res. J. Environment Sci. 
 International Science Congress Association             44 
Comparing the competitive trade advantage it was revealed that 
over the past decade, Sri Lanka gain higher competitiveness for 
exporting ornamental fish. In Ricardo theorm, country having 
comparative advantage can succeed the international trade and 
in that context, same country produces comparatively 
advantageous products frequently13. In that scenario Sri Lanka 
has huge potential over the exporting ornamental fish. 
Predominant sector in the Sri Lankan ornamental fish trade is its 
marine sector. Sri Lanka has significantly high export economic 
value on the ornamental fish trade and exports are exported 
more than 40 countries in world14. 
 
Diversification of the marine ornamental fish products may 
increase the potential in higher export earnings to Sri Lanka. 
Most exported species of Sri Lanka included the Labroides 
dimidiatus, Dascyllus trimaculatus, Acanthurusl-eucosternon, 
Ecsenius bicolor and Amphiprion clarkii respectively15.  Further 
research on the captive breeding of this species rather than 
tapping from wild may increase high production, exporting and 
sustainability of environment. In this prospect induced spawning 
may be advantageous. With regard to raising and captivity 
breeding of marine fish it is always a daunting task. But some of 
species can induced by pituitary hormone injection16. Exporting 
of freshwater fishes is another governing sector for this kind of 
improvements in Sri Lanka. Exporting of ornamental endemic 
fish is 0.001% of the total trade and it was negligible comparing 
with whole trade5. In Sri Lanka 67% of export earnings by 
number consisted with guppy17. Further research on this fish 
species in order to produce new varieties is much more 
important in this context.  
 
Considering with the relative trade advantage, it was revealed 
that highest relative trade advantage recorded in the year of 
2006. Higher relative trade advantage of the ornamental fish 
exporting indicated that the policy formulation on the 
ornamental fish trade has beneficial factors towards the 
industry. This was exemplify by the higher unit value realization 
over the decade which shows exponential growth.  
 
Higher competitiveness of the ornamental fish industry may be 
cause by different factors. Credibility and value is created by 
certifying each shipment through the quality control system of 
the Department of Animal Quarantine and Health. In addition to 
that major ornamental fish breeding center in Rambadagalla 
under the supervision of National Aquaculture Development 
Authority may be reason in case of providing training, 
supplying brooders, disease identification to investors, farmers 
in Sri Lanka18. 
 
Supply chain management is another important factor behind 
the improvements of the industry. Supply chain consisted 
number of parties including the collectors, aqua culturists, 
exporters, breeders, freight agent etc. proper coordination 
among these parties may increase the production and eventually 
increase the export earnings. Currently in Sri Lanka has 
recorded more than 30 exporters in actively participated in the 
industry. Further expansion of this number also become an 
imperative to enhanced production for continues 
competitiveness in the industry. 
 
Conclusion 
From this study it was revealed that Sri Lanka has higher 
comparative advantage over the ornamental fish export. 
Although there were fluctuations there is substatianal unit value 
for the ornamental fish in Sri Lanka. Data reveals that the major 
exporting country of ornamental fish of Sri Lanka was the USA, 
UK and France in year 2013. Untapped resources such as fresh 
water endemic fish has huge potential over the export earnings 
in future prospect with innovation of the technologies in captive 
breeding. Expansion of ornamental fish exporters, subsidies in 
the industry may be impetus over the increase export earnings 
furthermore. 
 
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Ornamental Fish trade in Sri Lanka: An Economic Perspective

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Ornamental Fish trade in Sri Lanka: An Economic Perspective

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