Sri Lanka's government is confident that a European Union warning on illegal fishing in the island will be retracted soon paving the way for German and Chinese investors to double fish export income to around half a billion U. S. dollars, an official said here on Wednesday.

Extensive lobbying has been done since the warning was issued in November 2012 with the EU officials indicating that it will withdraw its "yellow card" in June, Fisheries and Aquatic Resources Development Minister Rajitha Senaratne told media.

The warning was issued to Sri Lanka and seven other countries over illegal, unreported and unregulated (IUU) fishing. The minister said the EU had complained about 11 cases during the past year where Sri Lankan fishermen had intruded into territorial waters of other countries.

However, Senaratne was upbeat of the progress insisting that he had worked hard to ban illegal fishing methods including bottom trawling nets that deplete fish habitats and had imposed stronger penalties for fishermen that illegally fish in seas belonging to other countries.

Legal amendments that impose heavy fines of around 200,000 U.S. dollars and prison sentences are to be presented before parliament to be passed into law shortly, he added.

"I have had extensive discussions with European Commissioner Maria Damanaki, who is in charge of Maritime Affairs and Fisheries and she has indicated that the EU is satisfied with our progress," he said.

Currently Sri Lanka earns around 250 million U.S. dollars annually from fish exports, out of which 48 percent are earnings from tuna.

Europe usually purchases around 38 percent of Sri Lanka's fish exports but this amount has fallen to 33 percent last year with Japan and the U.S. increasing its stake to 47 percent and 17 percent respectively.

Senaratne remarked that agreements have been finalised with two companies from China and Japan to increase deep sea fishing, which has seen slow growth due to lack of equipment.

"Two deep sea fishing boats from Sri Lanka are expected in Sri Lanka within the next two weeks. Eventually we hope the number will increase to around 20 and we are having discussions with other Chinese companies to enter the market as well."

Japan's leading fish producer, known as "Tuna King", Kiyomura Corporation Chairman Kiyoshi Kimura, will also start a company in Sri Lanka soon, the Minister assured.

Both companies will be registered in Sri Lanka and will operate under the Sri Lankan flag. Once they are in operation, the Sri Lankan government expects fishing revenue to double hitting 500 million U.S. dollars. Endit