Title: Economic efficiency of the deep sea fishing fleet of Sri Lanka

The aim of the study was to estimate the economic efficiency of vessels operating in the deep sea fisheries in Sri Lanka, in relation to the length of these vessels. The results can then be used as a management tool for the improvement of the deep sea fisheries. Multi-day deep sea operating vessels (MDOVs) vary in length from 28-60 ft. According to a questionnaire survey conducted, all MDOVs´ had average trip duration of 9-22 days and 5-10 fishing days. Labour, fuel, food, ice and water contributed to about 41, 39, 12, 7 and 1 per cent of the total operational cost of the vessels respectively. The average net profit showed that all size classes operated with profit. The highest calculated yearly return of the capital investment of 66% was earned by the 35-39 ft group, followed 28-34 ft MDOV that earned 51%. The lowest, 9%, was earned by the > 44 ft MDOVs. Nearly one fourth of the captains surveyed had problems with foreign vessels arriving into Sri Lankan waters and about one fifth of them with fish price instability at the markets. About 13, 12 and 7% of the captains respectively named the insufficient harbour services, the constantly increasing input prices and the danger of being taken into custody by neighbouring countries when crossing EEZ country boarders as a problem. Collaboration of all actors in the industry will be the most suitable solution for the development of the industry. The possibility of vertical integration should be promoted for the development of deep sea fisheries in Sri Lanka.