PROSPECTS AND CHALLENGES IN DEVELOPING THE SEAWEED INDUSTRY IN SRI LANKA; A SWOT-PESTEL ANALYSIS

Abstract

The seaweed industry in Sri Lanka is an emerging sector that can signifi- cantly impact the country's economy. This study attempts to find the prospects and challenges of developing the seaweed industry in Sri Lanka. Primary data were col- lected from 50 randomly selected seaweed farmers in the Valaipadu area (Kilinochchi district) and key informants from public and private companies by using semi-struc- tured questionnaires, focus group discussions, and interviews. Strengths, Weaknesses, Opportunities, and Threats (SWOT) and Political, Economic, Social, Technological, Economic, and Legal (PESTEL) analyses were conducted. TOWS matrix was devel- oped to formulate strategies to improve industry performance. The results found that abundant natural seaweed growing areas with commercially important seaweed spe- cies is the most prominent strength for developing the industry. Scarcity of good qual- ity parental plant materials and pollution in production areas are the industry's greatest weakness. PESTEL analysis indicate positive political support with beneficial gov- ernment policies, though regulatory challenges emerge during shifts in governance. Economic potential is identified in rising demand and export prices, yet concerns arise from market fluctuations and increased transportation costs. Socially, the coastal com- munity displays positive interest, but challenges include resource exploitation and mismanagement of government funds. Technology-wise, government support exists, yet issues include underutilized research and development findings and concerns about equipment durability. Climatic conditions favour cultivation in the North, while challenges in the South involve high mitigation costs and pest threats. Legal require- ments for industry entry are recognized, but issues include the absence of quality standards, insurance, and safety precautions. This study suggests developing value- added products to meet emerging demand, implementing the research findings effec- tively, and collaborating with private and public organizations for the development of the industry.