A STUDY ON THE EFFECTS OF ORNAMENTAL FISH CULTIVATION ON INCOME DEVELOPMENT OF RURAL PEOPLE SPECIAL REFERENCE TO THE PANADURA DIVISIONAL SECRETARIAT

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1 A STUDY ON THE EFFECTS OF ORNAMENTAL FISH CULTIVATION ON INCOME DEVELOPMENT OF RURAL PEOPLE SPECIAL REFERENCE TO THE PANADURA DIVISIONAL SECRETARIAT by N M Karannagoda This thesis submitted to the Sri Lanka Development Administration in partial fulfillment of the requirements for the Degree of Master of Public Management Supervisor : Dr. S.R.S.N. Sudasinghe School of post Graduate Studies Sri Lanka Development Administration Colombo Sri Lanka August 2011 i

2 AUTHORIZATION I hereby declare that I am the sole author of this dissertation. I authorized the Sri Lanka Institute of Development Administration (SLIDA) to lend this dissertation to other institutions or individuals for the purpose of scholar research. I further authorized the Sri Lanka Institute of Development Administration (SLIDA) to reproduce the dissertation by photocopying or by other means, in total or in part, at the request of other institutions or individuals for the purpose of scholar research. N M Karannagoda ii

3 A STUDY OF HOW ORNAMENTAL FISH CULTIVATION EFFECTS TO THE INCOME DEVELOPMENT OF RURAL PEOPLE IN RELATION TO THE PANADURA DIVISIONAL SECRETARIAT By N M Karannagoda This is to certify that I have examined the above MPM dissertation and have found that it is complete and satisfactory in all respect, and that all revision required by the thesis examination committee have been made. Dr. S.R.S.N. Sudasinghe School Of Post Graduate Stuidies 31 August 2013 iii

4 ACKNOWLEDGEMENT Foremost, Researcher would like to express his sincere gratitude to his advisor Dr. S.R.S.N. Sudasinghe for the continuous support of his MPM study and research, for her patience, motivation, enthusiasm, and immense knowledge. Her guidance helped me in all the time of research and writing of this thesis. Researcher could not have imagined having a better advisor and mentor for his MPM study. Besides my advisor, I would like to thank the rest of my thesis committee: Senior Consultant Mr. Sunil Madagama and Senior Consultant Mr. W M M G D Wijekoon for their encouragement, insightful comments, and hard questions. His sincere thanks also goes to Additional Director (Post Graduate Studies) Mr. Thilakasiri and Mr. B. Wijayaratne director SLIDA for offering me this opportunity by starting a MPM degree programme. Researcher thank his dear sir Mr. Lasith Gunawardene senior lecturer University of Sri Jayawardenapura university, Mr Liyenege Head of Department English University of Vocational Training for the stimulating discussions, for the sleepless nights they were working together before deadlines, and his MPM colleagues for all the fun they have had in the last two years. Also Researcher thanks his friend Mr Duminda in University of Vocational Tanning, Researcher grateful to Dr. Mahanama for enlightening him for the first glance of research. Last but not the least, Researcher would like to thank his family: My grand Father Mr. D P Karannagoda, my parents Mr. Ranjith Karannagoda and Ms. Sujatha Karannagoda, for giving birth to me at the first place and my beloved wife Hasanthika Athukorala and little daughter Kulasandi Thinaya supporting me throughout my dissertation and life. Also my Father in Low Siripala Athukorala, Mother in Low Jayantha Athukorala, two sisters Dilani and Kalpana the support gave me throughout this dissertation. iv

5 ABSTRACT This study was based on three facts. First, facts of ornamental fish, which were not known to many people, were gathered. Second, the fact that ornamental fish industry of economic importance was proved studying the situation of this industry in Panadura Divisional Secretariat. By analyzing the gathered data pertaining to the ornamental Industry, eight main facts that the ornamental fish cultivators pay attention to were identified. Most small scale ornamental fish cultivators have identified those as very important factors, and the credibility of their view was tested using regression analysis, Multi correlation and Hypothetical testing. That has paved the way to develop a formula that includes the most important factors that should be considered in order to make the industry profitable. The formula can be used anyone who embarks on this industry. A main finding of the study was that certain facts that were considered by many cultivators are not important the extent that they think. This might be a significant area for those who want to conduct researches on the ornamental fish industry. Therefore, the necessity for a research which would study why such factors do not have a direct influence in the profit making has emerged as an outcome of this research. v

6 TABLE OF CONTENTS Chapter Title Page Title Page Authorization Authors Certification Acknowledgement Abstract Table of Content List of Tables List of Figures i ii iii iv v vi vii viii Chapter 01 Introduction Chapter 02 - Literature Review Chapter 03 - Research Methodology Chapter 04 - Data Analysis of Panadura Divisional Secretariat Chapter 05 - Analysis of sample data Chapter 06 - Conclusions and Recommendation References Appendices vi

7 LIST OF TABLES Table Number Topic Page Table : 2.1 Table : 2.2 The export of ornamental fish during the past two decade in US Dollars 14 The export contribution of Sri Lanka in the global market forecast 15 Table : 4.1 Distribution of population on ethnicity 63 Table : 5.1 Regression Statistics 69 Table : 5.2 Anova Table 69 Table : 5.3 Coefficient Table 69 Table : 5.4 Net Income & Ornamental Fish Farmers 70 Table : 5.5 Monthly expenditure on fish cultivation 73 Table : 5.6 Monthly Income In relation To Fish Farmers 74 vii

8 LIST OF FIGURES Figure Number Topic Page Figure : 2.1 Constitution of ornamental fish in the world market 12 Figure : 2.2 Number of export countries Figure : 2.3 Total export value in millions of US$ 41 Figure : 2.4 Value of the imports into Japan in million US$ 43 Figure : 2.5 Market shares for the export of ornamental fish for different regions in the world 43 Figure : 2.6 Number of export countries Figure : 2.7 Figure : 2.8 Market shares for the import of ornamental fish for different regions in the world 45 Market shares for the import of ornamental fish for European countries and Market shares for the import of ornamental fish for Asian countries 47 Figure : 2.9 Total import value in millions of US$ 48 Figure : 2.10 Developments in top-5 export countries Figure: 2.11 Market share of Singapore in the total world exports during Figure : 2.12 Successful export countries and their history Figure : 2.13 Counters with a declining market share during the last year 52 Figure : 3.1 plan of the sample selected 57 Figure : 5.1 Farmers and tank usage 70 Figure : 5.2 Amount of Land use for Fish Cultivation 71 Figure : 5.3 The period of time the farmers engaged in the industry 71 Figure : 5.4 Percentage of Famers Receiving Training 72 Figure : 5.5 Large Scale Sellers vs Small Scale Sellers 72 Figure : 5.6 Percentage of fish farmers that obtain loans 73 viii