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This place is also a source for traders who depend on the ship breaking industry.
Though Sitakunda is predominantly an agricultural area, it also has the largest ship breaking industry in the world.
The ship breaking industry is purportedly damaging the local ecology as well, taking a toll on the fish population and soil quality.
As of 2007, Sitakunda had overtaken the ship breaking industries of India and Pakistan to become the largest in the world.
Most people in the Colony are employed as Fishing industry as shrimp peelers, fishermen, fish cleaners, or labourers in the ship breaking industry.
The ship breaking industry began in earnest in 1974 when Karnafully Metal Works started scrapping Al Abbas, a Pakistani ship damaged in 1971, and flourished in the 1980s.
The nearest port to Ongole is the Vodarevu port (55 km),This Port is a Greenfield Port and Government have designated the Vodarevu Port as specialized port for Ship Breaking Industry.