Global ocean economy surging, but island nations like Sri Lanka missing out
ECONOMYNEXT – The global ocean economy is rapidly surpassing other sectors, United Nations Trade and Development (UNTD) has said. Island nations like Sri Lanka could benefit from this, but climate change, pollution, overfishing, regulatory gaps, and underinvestment threaten the sector’s future.
“In 2023, trade in ocean goods and services hit record highs of $899 billion and $1.3 trillion, respectively, highlighting the growing importance of marine activities for coastal and island nations,” UNTD said.
“Fisheries alone now sustain 600 million people living mostly in developing countries.”
South-South trade is surging, UNTD said. “From 2021 to 2023, fish (primary) exports rose 43% to $19 billion, while processed fish exports jumped 89% to $23 billion.”
The marine biotechnology market, estimated at $4.2 billion in 2023, is set to reach $6.4 billion by 2025, driven by low-carbon marine foods, new antibiotics, and bio-based materials, UNTD said.
But high tariffs and non-tariff barriers limit the potential of South-South trade in fisheries. “Developing economies apply average tariffs of 14% on fish products among themselves – far higher than the 3.2% in high-income countries.”
The Global System of Trade Preferences (GSTP) – a $16 trillion market between 42 developing countries – could help boost trade by lowering tariffs among developing countries and enhancing cooperation, UNTD said.
Sri Lanka has untapped potential in marine linked activities, with 1,340 kilometres of coastline and two seasons that allow year-round action, and can be expanded into a billion US dollar industry quickly, industry officials have said.
Sri Lanka plans on building 21 mini marinas and two logistics centers in the Colombo port to boost the ocean based economy.
Read more Sri Lanka eyes mini marinas in 21 fishery harbours to push blue economy
Sri Lanka’s Colombo port to seek private investors for two logistics centres
“Government will call for foreign direct investments to optimize the utilization of Sri Lanka’s untapped potential in investment, industrial development, and value added exports of Sri Lanka’s mineral resources and marine economy,” Sri Lanka’s President Anura Dissanayake said presenting the 2025 budget to parliament.
The UNTD says integrating ocean-based sectors into national climate and biodiversity plans to accelerate adaptation and improve resilience, finalizing legally binding treaty on plastic pollution to cut waste and enable marine-based material use, and ending harmful subsidies and scaling up financing, leveraging public and private funds are urgently needed to ensure the ocean economy grows sustainably and inclusively.
“Despite its scale, the ocean economy remains woefully underfunded.
“With the 5th UN Ocean Forum (March) and 2025 UN Ocean Conference (June) approaching, policymakers need to act now. The ocean economy’s future depends on it.” (Colombo/Feb27/2025)
