This report was partially supported by the Canadian International Development Research Centre under Project No. 3-P-78-0033.Sri Lanka has the milkfish (Chanos chanos) seed and water resources for the development of milkfish aquaculture as a new industry. Milkfish fry and fingerlings are present in all surveyed coastal wet lands, but are abundant in Mannar and Puttalam regions. The species enter tidal pools as larvae and develop into juveniles of about 50 mm. FL in one month. The fry and fingerlings are caught with seine net in tidal pools, transported in plastic bags and stocked in ponds and/or lakes. Mortality ranges 2-100% during transport; 2-15% during acclimatization; and 40-50% after 3 weeks in holding tanks. Careful handling and the application of appropriate transportation, acclimatization and nursing procedures would reduce mortality considerably
