ABSTRACT
Blue Economy is a way of deriving the economic growth of a nation through its contribution from the ocean and coastal-based activities while assuring environmental sustainability and livelihood development. Sri Lanka is an island nation of the Indian Ocean with an Exclusive Economic Zone (EEZ) of approximately eight times its terrestrial extent together with a continuous coastline, where the concept of Blue Economy is vital for the development of the country. This chapter discusses the development and challenges of the Indian Ocean Blue Economy and opportunities for Sri Lanka, in the context of its relationship with the other nations of the region. In relation to the geographical significance as of the connectivity of the island to the east-west maritime route, where half of the world’s trade is taking place through this region, the country has had a long history of international maritime trading since ancient times. As reflected by the Linear Shipping Index, Sri Lanka shows its importance by being ranked fifth among the other Indian Ocean Rim Countries. Coastal waters of the island are rich in marine biological resources, indicated by more than six hundred species, while this diversity together with natural beaches and its tropical climate is of service to the Blue Economy through tourism. Coastal, offshore, and deep-sea fisheries of the country play a significant role in economic terms via value addition to national income, employment, and foreign exchange through exports. World capture fishery has reached its peak, leaving no space for expansion, however Sri Lanka has a greater potential to expand its mariculture. Sri Lanka has a great potential to expand the boundaries of its Blue Economy. Next to its technological advancement and transboundary issues, the country is yet to reap the benefits of its surrounding seas, and this needs a long-term strategy.
