For decades, discarded fish heads, frames, viscera and skins generated at Sri Lanka’s fish markets were viewed as an environmental challenge and a costly waste-management burden. Today, a Board of Investment of Sri Lanka (BOI)-approved enterprise is demonstrating how the same waste stream can be transformed into a valuable export commodity, creating foreign exchange earnings, employment opportunities and a cleaner coastal environment.
The success story of Yesol Lanka, a fish-waste valorisation project based in Madurankuliya, Puttalam, highlights the potential of converting underutilised fish-processing by-products into internationally traded animal feed ingredients.
The venture was founded by entrepreneur Vijitha Kumara Rajapaksa, who gained industry expertise during his time working in South Korea. After spending a decade with Hantech Group, a major animal feed manufacturer operating across South Korea, Vietnam, Indonesia and India, Mr. Rajapaksa returned to Sri Lanka with knowledge of advanced fish-waste processing technologies and a vision to develop a similar industry locally.
At the time, discarded fish waste remained a major environmental concern in coastal areas. In locations such as Negombo, fish waste was often disposed of directly into the sea, while by-products from dried-fish production were discarded without organised collection systems. Local authorities also faced significant costs in managing waste accumulated at fish markets across the country.
Recognising the opportunity to address both environmental and economic challenges, Mr. Rajapaksa submitted a proposal to the BOI to collect discarded fish materials nationwide, process them into raw materials for animal feed production and export the finished products.
The project received BOI approval after identifying several key benefits, including reducing environmental pollution, generating foreign exchange, creating employment opportunities and providing additional income streams for fishermen and fish-waste collectors who previously had no commercial market for these materials.
Established on a 50-acre site in Madurankuliya with an investment of US$3 million, Yesol Lanka currently employs 45 people directly while generating significant indirect employment opportunities. The facility has the capacity to process 100 metric tons of fish waste per day, compared to the current national collection volume of approximately 50–70 metric tons daily.
The company purchases fish waste from fishermen and collectors at Rs. 20–30 per kilogram, turning what was once discarded material into a source of income. Its production process includes in-house laboratory testing for every batch, with specialised machinery capable of processing 15 tons of waste at a time at temperatures of 120°C, ensuring compliance with international quality standards.
Today, Yesol Lanka exports between 30,000 and 35,000 metric tons annually of fish meal, fish oil and fish paste, generating approximately US$2 million to US$2.5 million in annual export revenue. Its international customers include CP Company of Vietnam, one of the world’s leading shrimp farming groups.
The company has also achieved 100% Green Project status by adopting environmentally responsible practices, including replacing traditional export packaging with recyclable IBC containers and plastic pallets.
Yesol Lanka’s growth reflects a broader opportunity within Sri Lanka’s fisheries sector. The conversion of fish waste into high-value marine ingredients aligns with rapidly expanding global markets for fishmeal, fish oil, fish protein hydrolysates and aquaculture feed products.
Global demand for sustainable marine-based ingredients continues to rise due to growth in aquaculture, premium pet-food markets and increasing adoption of circular economy practices. Asia-Pacific remains a major growth region, driven by expanding aquaculture and food industries in countries such as China, India, Vietnam, Thailand and Indonesia.
BOI analysis indicates that Sri Lanka lands approximately 480,000 to 530,000 metric tons of fish annually, generating significant volumes of fish-processing waste. However, only a small proportion of the country’s total catch is currently converted into value-added marine products, presenting substantial opportunities for future investment.
Moving beyond traditional fishmeal production towards certified, higher-value products such as hydrolysed proteins and pet-food-grade ingredients could further increase export potential, provided producers meet internationally recognised certification standards.
Commenting on the company’s journey, Mr. Rajapaksa encouraged Sri Lankan youth to explore innovative, export-focused entrepreneurship rather than limiting themselves to traditional career paths. He emphasised that businesses built around sustainability and value addition can contribute significantly to national economic growth.
Through initiatives such as Yesol Lanka, the BOI continues to promote investments that transform environmental challenges into export opportunities, strengthening Sri Lanka’s position as a destination for sustainable and circular-economy industries.