Estimating the technical efficiency of offshore fisheries in Sri Lanka and evaluating the impact of digital technology

Abstract

As marine resources decline rapidly, integrating digital technologies with traditional fishing practices has become essential for improving resource efficiency and achieving sustainable economic outcomes. This study estimates the technical efficiency of Sri Lanka's inboard multiday (IMUL) offshore fishing vessels by examining efficiency differences across ring net, gillnet, and longline fishing gears. It assesses the impact of investment in digital technology on vessel performance. The sample comprised 450 IMUL vessels from 19 fisheries harbours, selected through stratified random sampling. First, we estimated technical efficiency using bootstrapped Data Envelopment Analysis (DEA) with 3000 iterations, applying both quantity-based (Q-DEA) and revenue-based (R-DEA) model specifications. Second, we analysed the relationship between digital technology investment and efficiency using Tobit, beta regression, and quasi-maximum likelihood estimation models. Mean technical efficiency scores were 0.7 for quantity-based models (Q-DEA) and 0.6 for revenue-based models (R-DEA), with significant differences across fishing gear types. Longline vessels attain the highest revenue efficiency (R-DEA) because they target high-value, mature fish with superior post-harvest quality. Ring net vessels exhibit the highest quantity efficiency (Q-DEA) but the lowest revenue efficiency (R-DEA). These contradictory results reflect a production-maximisation trade-off: while targeting low-value species maximises harvest volume, quality deterioration and post-harvest losses substantially erode revenue generation. Gillnet vessels performed moderately across both efficiency measures. Digital technology adoption remains low overall. Longline vessels employ substantially more technologies than gillnet and ring net vessels, contributing to their superior efficiency. Across all gear types, investment in digital technology demonstrated a strong positive relationship with technical efficiency. Therefore, implementing best practices alongside customised digital innovations tailored to the unique operational requirements of each fishing gear type will be essential for building a sustainable and profitable fishing industry.