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ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY

WORKING PAPER SERIES

Working Paper No: APFSOS/WP/16

COUNTRY REPORT - SRI LANKA

by

Ministry of ForestryColombo

Forestry Policy and Planning Division, RomeRegional Office for Asia and the Pacific, Bangkok

August 1997

Asia-Pacific Forestry Sector Outlook Study Working Paper Series No: 16

Country Report - Sri Lanka

Ministry of Forestry, Sri Lanka


The Asia-Pacific Forestry Sector Outlook Study is being undertaken under theauspices of the Asia-Pacific Forestry Commission.

This report comes under Workplan Number C16.



TABLE OF CONTENTS

INFORMATION NOTE ON ASIA-PACIFIC FORESTRY SECTOR OUTLOOKSTUDY........................................................................................................................................ i

1. CONTEXT IN WHICH FORESTRY IS DEVELOPING............................................... 11.1 Highlights of social and economic situation.............................................................................................. 11.2 Highlights of long term objectives and goals ........................................................................................... 11.3 Summary of Major Issues .......................................................................................................................... 3

2. STATE OF FORESTRY IN THE COUNTRY AND MAJOR TRENDS ...................... 52.1 The Forest Resource - Status and Trends................................................................................................. 5

2.1.1 Natural forests...................................................................................................................................... 52.1.2 Forest Plantations.................................................................................................................................. 6

2.2 Environmental Initiatives, Protected Areas and Wildlife Resource - Status and Trends .................... 72.3 Wood Based Industries (including Pulp and Paper) - Status, Trends, Transition .............................. 132.4 Wood Energy/Fuel Wood Status Trends and Transition ..................................................................... 152.5 Non Wood Forest Products: Status and Trends.................................................................................... 16

2.5.1 Medicinal Plants.................................................................................................................................. 172.5.2 Rattan.................................................................................................................................................. 192.5.3 Bamboo............................................................................................................................................... 192.5.4 Edible Plants ...................................................................................................................................... 202.5.5 Resin Tapping ..................................................................................................................................... 21

2.6 Services of the Forest, Status and Trends............................................................................................... 212.7 Institutions and Policies............................................................................................................................ 23

2.7.1 Policies and legislation........................................................................................................................ 232.7.2 Institutions........................................................................................................................................... 24

3) FUTURE ............................................................................................................................ 253.1 Assessments of Future Supply and Demand for Forest Products and Services................................... 263.2 Future Development and Development Objectives................................................................................ 28



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INFORMATION NOTE ON ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY

At its sixteenth session held in Yangon, Myanmar, in January 1996, the Asia-Pacific Forestry Commission, whichhas membership open to all governments in the Asia-Pacific region, decided to carry out an outlook study forforestry with horizon year 2010. The study is being coordinated by FAO through its regional office in Bangkokand its Headquarters in Rome, but is being implemented in close partnership with governments, many of whichhave nominated national focal points.The scope of the study is to look at the main external and sectoral developments in policies, programmes andinstitutions that will affect the forestry sector and to assess from this the likely direction of its evolution and topresent its likely situation in 2010. The study involves assessment of current status but also of trends from thepast and the main forces which are shaping those trends and then builds on this to explore future prospects.Working papers have been contributed or commissioned on a wide range of topics. They fall under the followingcategories: country profiles, selected in-depth country or sub-regional studies and thematic studies. Workingpapers are prepared by individual authors or groups of authors on their own professional responsibility; therefore,the opinions expressed in them do not necessarily reflect the views of their employers, the governments of theAsia-Pacific Forestry Commission or of the Food and Agriculture Organization. In preparing the substantivereport to be presented at the next session of the Asia-Pacific Forestry Commission early in 1998, material fromthese working papers will be an important element but will be blended and interpreted alongside a lot of othermaterial.Working papers are being produced and issued as they arrive. Some effort at uniformity of presentation is beingattempted but the contents are only minimally edited for style or clarity. FAO welcomes from readers anyinformation which they feel would be useful to the study on the subject of any of the working papers or on anyother subject that has importance for the Asia-Pacific forestry sector. Such material can be mailed to the contactsgiven below from whom further copies of these working papers, as well as more information on the Asia-PacificForestry Sector Study, can be obtained:

Rome: Mr. Mafa ChipetaSenior Forestry OfficerPolicy and Planning DivisionForestry DepartmentFood and Agriculture Organization of the

United NationsViale delle Terme di CaracallaRome, 00100, ITALYTel: (39-6) 5705 3506Fax: (39-6) 5705 5514Email: <[email protected]>

Bangkok: Mr. Patrick DurstRegional Forestry OfficerFAO Regional Office for Asia and the

PacificMaliwan MansionPhra Atit RoadBangkok 10200THAILANDTel: (66-2) 281 7844Fax: (66-2) 280 0445Email:

<[email protected]>



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1. CONTEXT IN WHICH FORESTRY IS DEVELOPING

1.1 Highlights of social and economic situation

The estimated population of Sri Lanka in 1994 was 17.9 million with an annual growth rate of1.4%. The GDP at constant 1982 factor cost price was Rs. 159.3 billion during 1994 and percapita GNP was US$ 652. The GDP growth rate during 1995 at constant 1982 factor costprice was 5.6%.

Table 1 - Composition and Growth Rate of GNP 1993 - 1995 (1982, constant) factor

Item Amount Rs Million Growth Percentage1993 1994 1995 1994 1995

Agriculture Forestry and Fishing 31,554 32,593 33,593 3.3 3.3Tea 2,985 3,116 3,166 4.4 1.6Rubber 681 688 694 1.0 0.9Coconut 2,799 3,376 3,548 20.6 5.1Paddy 6,447 6,750 7,067 4.7 4.7Other Agriculture Forestry & Fishing 18,642 18,663 19,184 0.1 2.8

The employment in forestry sector is estimated officially to be 171,000. However studies doneduring the forestry master plan review during 1995 revealed that the total employment in theforestry sector is around 330,000 which is almost double the official figure. The totalemployment in harvesting, transport and processing was estimated to be around 28,000 in1995. The forestry sector contribution to the energy supply in Sri Lanka is also not dulyrecognized. The share of bio energy in the total energy consumption is around 67% of whicharound 85% is fuel wood. This means that fuel wood provides about 57% of the total energysupply.

According to official statistics the contribution of Forestry to the national economy in 1994was 1.4% of the total gross domestic product. The true contribution to the economy ishowever much greater. The statistics fail altogether to account for the non-marketedproduction of sawn wood, fuel wood and various non-wood forest products and other informalvalue addition in the sector.

Sawn wood production was 514,000 m3 in 1993 which were used in various industriesincluding construction, furniture.

1.2 Highlights of long term objectives and goals

The first forestry sector master plan which was formulated in 1986 was revised and a newforestry master plan was developed in 1995. As a part of this master plan formulationexercise, a new forest policy was also developed, and accepted by the government in mid1995. Some of the future objectives and goals of the forestry sector are as follows:



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• In the context of bio diversity conservation it is proposed to establish a protected areanet work which is fully representative of forest eco systems, communities and species.This is to be supplemented by ex-situ conservation wherever necessary. In addition, it wasalso emphasized that these areas should be managed in such a way that benefits fromprotection also accrued to the rural people.

• In the context of production forests it proposed to create a permanent forest estate

which will be categorized into various forest classes depending on the objectives ofmanagement. It is also proposed to develop and manage all the forest areas scientificallythrough appropriate forestry management plans with peoples participation whereverpossible. Another main objective will be the development and management of agroforestry systems and improvement of wood production potential of existing homegardens by providing appropriate institutional and technical supporting services.

• Forest plantations will be managed as commercial ventures by establishing a "forest

plantation profit centre". Partnerships will be built for the scientific management of theplantations with appropriate community based organizations or private sector. In additiondegraded state lands will be leased out on a long term basis to the private sector for thedevelopment and management of forest plantations. In wood utilization, it is hoped toproduce wood products competitively based on sustainable wood supply. It is alsoemphasized that forest industries based on the sustainable utilization of wood resourceswill be established, in order to enhance the contribution to economic developmentespecially in the rural areas. In order to make the markets competitive, it is also proposedto allow free price formation of the raw material by removing the present monopoly onwood marketing from state areas enjoyed by the State Timber Corporation.

• The non wood forest resource base will be conserved both in in-situ and in ex-situ,

making non wood forest production sustainable, mainly for the benefit of local people andrural industry. Rural industries based on non wood forest products from sustainablesources and efficient non wasteful production techniques will established. Whereverpossible non wood forest products will be obtained through cultivation both in forest areasand in home gardens.

• In the fuel wood sector the main aim will be to provide adequate bio energy for rural

people. It is also proposed to develop and improve existing technologies to increase theefficiency of energy use by household and fuel wood consuming industries. It is alsoenvisaged to develop dendro thermal electricity on a pilot basis.

• In the context of human resource development, the main aim will be to have an adequate

number of motivated, trained and capable forestry personnel engaged in resourceconservation, management and utilization. In order to achieve the above, it is alsoproposed to build up high quality educational and training institutions which could fulfilthe requirements of each forestry partner and strengthen the capacity of the institutions.

• The main objectives of forestry external support services will be the development of

forestry partnerships for the establishment, management and conservation of all naturalforests, forest plantations, agro forestry systems and other non forest tree resources. It isalso emphasized that institutions concerned with extension and the delivery of support



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services effectively provide proper motivation, guidance, information and other support todifferent forestry partners.

• In order to provide technical information to achieve the above objectives it is envisaged to

develop a long term research programme including a policy on research allocation,research agenda and a manpower and facility development plan. The above programmewill be implemented through a National Forestry Research Network under the leadershipof the already established national forestry research committee supported by appropriatetechnical research committees. Although the possibility of the establishment of a nationalforestry research institute will be explored, as an interim measure existing institutions willbe strengthened.

1.3 Summary of Major Issues

The main economic linkages among the forestry sector and the other sectors of the economyare: with the house hold sector the labour force and the final demand for products; with theenergy sector the supply of bio energy and the protection of catchment areas servicing hydropower generation; with agriculture, protection of soil and water supplies; and with industry thesupply of wood and other forest based raw materials.

According to the official statistics the contribution of the forestry sector to the nationaleconomy in 1994 was around 1.4% of the total gross domestic product. The true contributionto the economy is however much greater. The official estimates concentrate on marketoriented activities and do not even include them properly due to non availability of reliablestatistics. The statistics fail altogether to account for the non marketed items such as fuelwood and other sawn wood consumed locally and non marketed quantities of various nonwood forest products used by the villages living near natural forest areas. In addition forestsalso provide other tangible and intangible benefits. They contain most of the biodiversity andtherefore serve a crucial ecological function. Forests also protect soil and water resources sothat they make a positive contribution to agriculture and hydro power generation. In additionnatural forests are important from the view point of recreation and aesthetic values.

Taking these facts into account, it is justifiable to say that the forestry sector's contribution tothe national economy is grossly under estimated in the official statistics. A conservativeestimate from the Forestry Master Plan study (1994-1995), revealed that the true contributionto the national economy is around 6% without all the intangible benefits. As a consequence tothe under estimation of the contribution of the forestry sector, inadequate allocation ofresources have been assigned for the development of the sector. In addition the mostimportant issue is that the adverse social and economic impacts associated with deforestationand forest degradation may be under valued or may even go unnoticed because the sector'simportant functions are not fully accounted for.

Sri Lanka was almost entirely covered by natural forest until the turn of the century. Since thattime the closed canopy natural forest cover has dwindled rapidly from about 80% until around24% in 1994. In the light of the increasing demands placed upon the forestry sector, itsdiminished capacity to meet the forest needs of the people sustainably has become the majorproblem, which is being felt both at national and local level. The most serious consequencesof deforestation and forest degradation are:



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a) Reduction in biodiversity due to destruction of habitats of fauna and flora. b) Irregular water flow, and drying up of natural springs and reduction in base flow of

streams together with flash floods during rainy season. c) Shortened lifespans of irrigation reservoirs and channels. d) Loss of soil fertility associated with soil erosion which results in the reduction of

agricultural productivity. e) Widening gap between the demand and the supply for wood products resulting in rapidly

increasing prices together with increasing imports of sawn wood and other wood products. f) Scarcity of fuel wood in certain localities. g) Contribution to green house gas emissions.

Thus it can be concluded that the overall impact of forest degradation and deforestation willresult in the reduced well being of the present as well as future generations.

The web of factors contributing to deforestation and forest degradation is extensive andcomplex. Some of them are outside the forestry sector. The main one of the under line causesof the deforestation is poverty which is often associated with landlessness and a poor land-tenure system. Other causes of deforestation are large agriculture and human settlementprojects, chena cultivation, unscientific harvesting of forest products and the conversion of thenatural forest to other land uses. In a predominantly agricultural economy such as Sri Lanka,there is a strong link between population growth and deforestation. More food is needed tosupport the increasing population and agricultural production has been increased mainly byexpanding the area under cultivation. Since most of the other cultivable land had already beenused, natural forests have been cleared.

As a result of these constraints forest area per capita has declined from about 1.3 ha. in 1990to less than 0.1 ha. in 1992. The remaining natural forests are placed under increasing pressureas the population keeps on growing and the resource base diminishing. Thus the competitionfor the cultivable lands will increase. Unless a comprehensive national land use policy isformulated and implemented, unplanned conversion of forest into other land uses will becontinued.

The degradation of the forest resource is also closely linked to the demand for forest productssuch as timber, non wood forest products and fuel wood. Population increase combined witheconomic growth has resulted in higher demand for housing and business construction whichhas automatically increased the demand for wood. At the same time people’s awareness offorestry related environmental issues has increased, which has caused acute conflicts betweenthe desire for conservation and the pressures to produce and consume. Alongside these basicfactors one can observe policy and institutional causes for deforestation. Inappropriate landuse trends are partly the results of insecure tenure and the lack of explicit land use and forestpolicies with clearly defined development objectives and associated legislation. Agricultural



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development and settlement policies have been expansive in nature and they have beenimplemented without guidance from a national land use policy.

Practically all the forest lands have been vested in the central government but the governmenthas been unable to extend effective control over all these land. At the same time the localvillagers depending on the forest have practically no right to the land or its produce and noobligations. In this kind of environment, where rights and responsibilities are unequally andirrationally shared, the resources base will inevitably be "mined". As a whole, the policy andinstitutional environment and the allocation of resources have not supported sustainable, muchless progressive, forestry development.

If the current trends are continued, the future will not alleviate the pressure on the forestresources, on contrary pressure can be expected to increase. It is estimated that the expandingpopulation and economic growth will increase the demand for logs and poles from about 2.0million M3 in 1995 to 2.7 million M3 in 2020. During the same period the requirement ofbiomass energy will increase from 9.0 to 9.7 million tons. The pressure placed upon the forestof Sri Lanka is immense. Industry wants sawn wood and other forest products, rural peoplerequires fuel wood to meet their energy requirement, the growing population require land foragriculture while the environmentalists and other nature-concern people want to preserve theremaining natural forests.

2. STATE OF FORESTRY IN THE COUNTRY AND MAJOR TRENDS

2.1 The Forest Resource - Status and Trends

2.1.1 Natural forests

The dense natural forest cover represents around 23.9% of the land area of the country, but thetotal forest cover including sparse forests is around 30.9%. Most remaining forest is the drymonsoon type. Only fragments of tropical rain forest are available and few are larger than10,000 ha. Over the last century much of the forest resources in Sri Lanka have beenconverted to other types of land use such as plantation crops and other forms of agriculture,human settlements and shifting cultivation. The remaining natural forests are under increasingpressure, as a result of increasing population and the consequent demand for forest land forother uses.(F.D. - Administration Report 1995). The extent of remaining natural forest in 1992is given in Table 2.



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Table 2 - Extent of Natural Forest Areas in 1992

Type of natural forest Total forest area (ha) % total land areaClosed canopy Montane Sub-montane Lowland Moist monsoon Dry monsoon Riverine Mangrove Sub-total Open canopy: Sparse TOTAL

3,108 68,616

141,506 243,886

1,090,981 22,435 8,688

1,579,220

464,0762,043,296

0.051.042.143.69

16.49 0.34 0.1323.88

7.0130.89

2.1.2 Forest Plantations

The total forest plantation area was about 131,000 ha in 1995, of which about 84,000 habelong to the Forest Department; 4,000 ha of forest Department plantations are protectiveplantations. Although Forest plantations were established for the first time in the 1870s, largescale planting has taken place since 1950s only. About 131,000 ha of forest plantations havebeen established within ninety years. This area comprises some 5,000 ha of mainly fuelwoodplantations. The most common species planted are Teak followed by Eucalypts (mainlyEucalyptus grandis), Pine (Pinus caribaea) and Mahogany. Most of the fuel wood plantations(mainly Eucalyptus camaldulensis, but also Acacias and E. tereticornis), miscellaneoushardwood and teak plantations are situated in the dry zone. While most of the eucalypts(mainly E. grandis, but also E. microcorys, E. globulus and E. robusta) and Pines (P.caribaea and P. patula) are in the up country, and in the Galle and R'pura forest Divisions.The Mahogany plantations are mostly in Kurunegala and Kegalle districts.

Plantation establishment aimed to replace forest loss through uncontrolled chena cultivation.Taungya system was adopted to establish Teak in the dry zone jak, under-planted withmahogany in the intermediate zone. Hardwoods were established in the dry zone, with anincreasing proportion of teak, but planting of teak stopped after 1926 due to unfavourablesilvicultural reports. It had been resumed again by 1939. In 1938 the policy of tree planting inpatana (natural grassland) was introduced. Planting of exotic species, such as pines andeucalypts in the up-country was initiated under this scheme.

As the forest policy emphasis was given to timber and fuel wood production, the expansion offorest plantations was used as the main strategy to meet the new demand and reduce thepressure on the natural forests. Most of existing Pinus caribaea stands were planted between1965 and 1984. P. patula was planted mainly from 1966 to 1976 especially at higher altitudes.In the dry zone, large scale planting of teak continued until the mid 1980s. During the 1970sand 1980s Eucalyptus camaldulensis and E. tereticornis were established extensively in thedry zone, together with an increasing proportion of Acacia auriculiformis and Margosa(Neem). Eucalyptus and Acacia were planted as a response to concern of a potential deficit in



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the fuel wood supply. One of the main forestry projects in the 1980s was the AsianDevelopment Bank (ADB) funded Community Forestry Project (CFP) which concentrated onthe development of fuelwood plantations and agroforestry in 5 of the 25 districts of Sri Lanka.Other major forest plantation projects in the 1980s were the forest resources developmentproject funded by IDA/World Bank, the USAID project and various integrated ruraldevelopment projects in more than 10 districts.

The annual planting rates by Forest Department have been declining compared to the 1960sand 1970s, and the forest plantation sub sector has become increasingly dependent on foreignfunding. Other recent trends are the almost complete cessation of planting of Pines andlimiting the planting of Eucalypts mainly to replacement after felling of the up country stands,and emphasis being given to the planting of indigenous hardwood, teak and margosa.

2.2 Environmental Initiatives, Protected Areas and Wildlife Resource - Statusand Trends

Sri Lanka has a strong tradition in conservation where around 14% of the total land area isconserved at present. However it does not include a representative sample of areas concerned,with bio diversity particularly in the wet zone. Therefore, a survey of all the remaining naturalforests to get information required on the current status and distribution of biodiversity wasconducted through funding from UNDP and technical support from IUCN.

Management of conservation areas is largely ineffective and suffers from inadequate scientificdirection and weak enforcement. Potential economic benefits of protected areas had being lostin the past to unsustainable land use practices. Encroachments and lack of financial incentivesto use biological resources wisely could be considered as the major factors which contributedto the above.

The government recognized that the provisions for the conservation were totally inadequate inthe wet zone in the Forestry Master Plan formulation in 1986. It was decided to take followingsteps :

1) stop logging in the natural forest areas until the conservation value of remaining naturalforests was assessed.

2) Incorporate an environmental management component in the Forestry Sector DevelopmentProject which was being implemented.

Several policies and legal provisions were formulated to protect natural forests andbiodiversity and these have been periodcially reformed and amended in order to accommodatenew dimensions in conservation; table 3 lists of some these. Clearing of natural forests forplantations was stopped, after reviewing serious impacts on climate and other environmentalfactors. The complete protection of all natural forests above 5,000 feet as climate reserves wasadvocated through various amendments and this was included in the Forest Policy in 1938.Preservation of indigenous flora and fauna was initiated in 1929 and this was continued as acomprehensive statement of natural forest policy objectives in 1953. These policy objectiveswere reformulated in 1972 and 1980 giving more emphasis to preservation of environment.The Forest Ordinance has become greener through various amendments during this period andsome activities such as bark stripping, tapping, quarrying, burning lime or charcoal, collecting



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forest products and pasturing cattle are prohibited in reserve forest under the Amendment ActNo. 13 of 1966. Act No. 84 of 1988 incorporated further revisions in order to strengthen theprovisions for conservation as well as to improve enforcement measures, together withincreased penalties for forest offences.

The National Heritage Wilderness Areas Act was passed in 1988 to preserve unique oroutstanding natural areas in their natural state. Entry to these areas was restricted by theintroduction of a permit system. Activities are restricted to scientific research and observationof flora and fauna. The act was introduced to safeguard biodiversity in Sinharaja natural forestarea which was declared a national heritage wilderness area in 1988 and also designated as aWorld Heritage site subsequently. Various laws were introduced since 1890 integrated underAct No 1 of 1908 to control the unrestricted killing of wildlife. Several uninhabited forestareas were declared as sanctuaries for protection of wildlife under the Forest Ordinance No 10of 1885.

Administration of the forests was placed under the Ministry of Agriculture and Lands in 1930.Its first initiatives was to set up a Fauna and Flora protection committee to advise on thereservation of additional areas for the protection of flora and fauna. The most recentamendment (Act No 49 of 1993) of the Flora and Fauna Protection Ordinance provides for theestablishment of several new categories of reserve and raises the penalties for the infringementof the ordinance. A national policy for wildlife conservation areas was recently adopted by thegovernment and the policy was formulated in response to the Sri Lanka National ConservationStrategy of 1988. (CEA,1988)

Table 3 - Key policies and laws concerning conservation of biodiversity in forest

year Policy/law (competent authority) provision for biodiversity conservation1848 Timber Ordinance No.24 Reservation of forests, largely for timber

production1873 Hooker advocates protection of natural

forests above 5000 feet as climatic reserves1885 Forest Ordinance No. 10 [Conservation of

forests]Protection of forests and their products inreserved forest (including streamreservations) and village forests, primarilyfor sustained production; also, protection ofwildlife in sanctuaries

1907 Forest Ordinance No 16 [Conservator offorests]

Protection of forests and their products inreserved forests and village forests, primarilyto provide for controlled exploitation oftimber

1929 First authoritative forest policy statement Preservation of indigenous flora and fauna1938 Amended Clearing of forests prohibited above 5000

feet Plantations to be gradually converted toindigenous species

1937 Fauna and Flora Protection Ordinance N0.2[Director of Wildlife]

Protection of wildlife in national reserves(i.e. strict natural reserves, national parks,and intermediate zone comprising onlycrown land] and sanctuaries (comprisingboth crown and private land). Outside suchprotected areas total protection afforded towildlife in national reserves and sanctuaries.



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year Policy/law (competent authority) provision for biodiversity conservationIn sanctuaries, habitats protected only onstate land while traditional human activitiesmay continue on privately-owned land.

Amendment Act No.44 in 1964 Nature reserve and jungle corridorincorporated as categories of national reserve

Amendment Act No.1 in 1970 Intermediate zone to provide for controlledhunting, was removed from ordinance.

Amendment Act No. 49 in 1993 Refuge, marine reserve and buffer zone asadditional categories of national reserve

1953 National Forest Policy Emphasis on conserving forests to preserveand ameliorate the environment, and toprotect flora and

Re-stated in 1972 and 1980 fauna for aesthetic, scientific, historical andsocio-economic reasons

1969 UNESCO Biological Programme and1975 UNESCO Man and BiosphereProgramme

Arboreta representative of the main bio-climatic zones established and demarcated inforest and proposed reserved

1982 Mahaweli Environmental Project Network of protected areas established tomitigate impact of Mahaweli DevelopmentProject on wildlife and to protect catchmentsin the upper reaches of Mahaweli Ganga

1988 National Heritage Wilderness Area Act No.3[Conservator of Forests]

Protection of state land having uniqueecosystem, genetic resources, or outstandingnatural features, in national heritagewilderness area

1990 National Policy for Wildlife Conservation(approved by Cabinet)

Objectives include the maintenance ofecological processes and preservation ofgenetic diversity; ex-situ conservationrecognized as important for threaten species

1990 Forestry Sector Development Programme: Logging of natural forests banned in wetzone, pending review of their values forconservation of Biodiversity, soil and waterresources.

Protected areas

Most of the forest reserves were established in the 1920s. Establishment of "Man andBiosphere" reserves by the FD, where extraction of timber was not permitted, was done in1975. In last few years, the network of forest conservation areas has expanded considerablywith the addition of 13 conservation forests in the wet zone and the Knuckles conservationforest in the wet and intermediate zone. The network of wildlife sector expanded considerablyduring the 1980s, mostly in the basin of the Mahaweli Ganga and adjacent areas to protect thewater catchment and to provide refuge for animals displaced by the Accelerated MahaweliDevelopment Programme.

More than 28% of the total forest area is reserved and administrated by either by the ForestryDepartment (FD) or Department of Wildlife Conservation (DWLC) 16.1% and 12.4%respectively - see Table 4.

Table 4 - Extent of designated areas administrated by the FD and the DWLC



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Area, ha/proportion of total land area, %National designation No. Declared in 1994

Forestry DepartmentForest reserveProposed reserveNational HeritageWilderness areaTotalDWLCJungle Corridor

National ParkNature ReserveSanctuaryStrict NaturalReserveTotal

177217

1395

1

123

52

371

518,199(7.8%)621,147(9.4%)

11,187(0. 2%)1,150,533(17.4%)

10,360( 0.2%)

462,448( 7.0%)33,372( 0.5%)

284,117( 4.3%)

31,574( 0.5%)821,871(12.4%)

466,335( 7.1%)589,388( 8.9%)

11,187( 0.2%)1,066,910(16.1%)

10,360( 0.2%)(not in existence since in 1995)

462,448( 7.0%)33,372( 0.5%)

284,117( 4.3%)

31,574( 0.5%)821,871(12.4%)

At present, the FD manages 111,099 ha or 1.7% of the total land area for conservation. Manyof the protected areas are small and isolated: 30% of protected areas are less than 1,000 ha and54% are less than 10,000 ha. Most protected areas of the FD are smaller than 1,000 ha. whilemost of those of DWLC are larger than 1000 ha. FDs small protected areas are biospherereserves which are core areas of much larger forest or proposed reserves.

Sri Lanka participates in all three international initiatives concerned with protected areas. Themost important site for biodiversity conservation is Sinharaja which has been declared abiosphere reserve under the UNESCO MAB programme and inscribed on the World HeritageList of Natural Sites (table 5).

Table 5 - Natural sites designated for conservation under international initiatives

International initiative Protected area Year Area (ha)Ramsar Wetland Conservation Bundala S 1990 6,216UNESCO MAB Programme Hurulu FR 1977 524 Sinharaja FR/PR 1978 8,864World Heritage Convention Sinharaja NHWA 1988 11,187

Table 6 - Numbers of species of vascular plants, vertebrates and selected invertebrate groups and levels of endemism and threat.

Species Endemic species Group No. National Global No. National Global

criteria criteria criteria criteria Pteridophyte 314 90( 29%) 36(11%) 57(18%) 30(53%) 35(61%) Gymnosperms 1 1(100%) 0( 0%) 0( 0%) 0( 0%) 0( 0%) Angiosperms 3,368 487( 14%) 413(12%) 879(26%) 227(26%) 399(45%) Butterflies >242 81( 33%) 3( 1%) 14( 6%) 11(79%) 3(21%) Spiders >400 14( 4%) 0( 0%) 0( 0%) 0( 0%) 0( 0%) Land molluscs 266 152( 57%) 0( 0%) 201(76%) 152(76%) 0( 0%) Freshwater fishes 65 30( 46%) 19(29%) 29(45%) 28(97%) 19(66%) Amphibians 48 29( 60%) 0( 0%) 29(60%) 29(100%) 0( 0%) Reptiles 162 113( 70%) 9( 6%) 79(49%) 78(99%) 1( 1%) Birds 419 56( 13%) 8( 2%) 24( 6%) 17(71%) 6(25%) Mammals 89 39( 44%) 9(10%) 12(13%) 11(92%) 0( 0%)



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As becomes evident in Table 6, many species found in Sri Lanka are endemic: for example26% of flowering plants, 76% of land snails, 60% of amphibians and 49% of reptiles. About40% of woody plants are endemic, a large number of them are rare, having extremelylocalized distributions in remnant forest fragments (Table 8). For example, 119 plant speciesare restricted to single forest; 49 of these are rare and endemic. Environmental ManagementDivision of FD has recorded rare species in new localities, rarities not collected or seen sincelast century due to inadequate knowledge. Existing information revealed that numerousspecies are threatened with extinction according to either national or international criteria.

Some of these species facing extinction due to further loss of forests (table 7). OneDipterocarp species which is endemic and has become extinct. Data for reptiles indicates thatat least 11% of the endemic snake fauna has not been recorded since 1950 or earlier.

Table 7 - Possible species extinction in selected plant and animal groups

Group species endemic Extinct species Extinct species Dipterocarps 58 58 1(1.7%) 1( 1.7%) Snakes 162 79 14(8.6%) 13(16.5%)

There are some species which become rare very often due to over-exploitation. For example;Satin wood (Chloroxylon swietenia), Ebony (Diospyros ebenum), Calamander (Diospyrosquaesita) and Nedun (Pericopsis mooniana) are now rare. Madara (Cleistanthus collinus)seems to have been exploited to extinct. Medicinal and ornamental species such as orchids arealso at risk from exploitation. Of the 170 species of orchids found mostly in forest, 13 speciesare likely to become extinct including Dendrobium maccarthiae, D. heterocarpum, Ipseaspeciosa and Rhynchostylis retusa. Among forest vertebrates, the elephants have declinedfrom more than 10,000 to about 2,500 - 3,000 in 1993. This decline is due to hunting anddestruction of habitat, particularly in the wet montane forest areas.

Today a large number of wild fruits are consumed mostly by villagers, but their geneticdiversity has not been studied and preserved. The gene pool of many medicinal plants andwild relatives of cultivated plants is still found only in the wild where it is threatened bycontinuing deforestation and unsustainable exploitation. Few studies were carried out on largevertebrates notably elephants and leopard which indicate a decrease in diversity as aconsequence of geographic isolation from the Indian subcontinent. Preliminary results fromthe National Conservation Review show that from 20% to >50% of the species in plant andanimal groups were found in the lowland rain forests and moist monsoon forest of fourdistricts in the wet zone.



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Table 8 - Diversity and status of selected plants and animal groups recorded in lowlandrain forest and moist monsoon forests in Galle, Matara, Kalutara, and RathnapuraDistricts

Selected group No. of species recorded in rain/moist monsoon forestNo. of species

in groupTotal Rare Endemic Rare

endemic Woody plants 1,496 619(41%) 119( 8%) 299(20%) 49(3%) Butterflies >242 50(21%) 14( 6%) 2( 1%) 0(0%) Molluscs 266 >27 (10%) 9( 3%) 22( 8%) 6(2%) Freshwater fishes 65 21(32%) 10(15%) 13(20%) 3(5%) Amphibians 48 27(56%) 8(17%) 14(29%) 3(6%) Reptiles 162 44(27%) 13( 8%) 22(14%) 5(3%) Birds 419 109(26%) 22( 5%) 19( 5%) 1(+%) Mammals 89 25(28%) 5(6%) 3(3%) 0(0%)

2.3 Wood Based Industries (including Pulp and Paper) - Status, Trends,Transition

The main problem of wood based industries is the shortage of wood, which limits theproduction possibilities of the domestic saw milling and plywood industries. People will haveto pay increasingly high prices for wood based forest products. The widening gap between thedemand and supply of forest products is likely to be met by increasing imports, which willplace a heavy burden on the balance of payments. Due to the above facts it is not possible tocontrol illegal logging and sawmills will continue to get their wood supplies fromunsustainable sources. The wood based industry is facing critical problems today, due to:

• Scarcity of wood resulting in high raw material costs, low utilization capacity rates, andconsequently reduced labour productivity;

• Old inefficient machinery that has not been designed for utilizing small logs causing high

wastage; • Inadequate management and labour skills, resulting in low recovery rates, quality and

overall productivity; • Unreliable and costly power supply; • Lack of stable policy directions for wood based industry development; • Excessive regulation of transport of wood and finished products and slow and unreliable

movement of wood; • Inadequate financial arrangement for modernizing the industry; • Lack of market and industry information systems; • Bad image of the industry;



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• Lack of research support and inefficient utilization and dissemination of existing

information.

The total sawn wood consumption in 1993 was about 0.544 million m3, of which 29,000 m3

were imported (about 5%). The main panel product is plywood. Consumption of plywood wasabout 28,000 m3 of which 5,000m3 were produced domestically and the other 23,000 m3 wasimported. Fibreboard consumption in 1993 was about 2,500 m3 and that of particle board wasabout 1,500 m3. All of particle board and fibreboard were imported. Table 9 reportsproduction of selected wood products and its roundwood equivalent.

The sawmilling sector consists of more than 4000 sawmills with capacity ranging from a fewcubic metres to 7,000 m3/year. The total output of sawn wood in 1993 was estimated to beabout 514,000 m3. Sawmills are labour intensive. About 10,000-12,000 people are involved insaw milling sector. Residues of sawmills have not been utilized industrially with fewexception.

In 1993 the wood based panel industries included 12 small plywood mills producing plywoodfrom rubberwood for tea chests, doors and construction purposes. . The output range of theseplywood mills is 120-1,300 m3/year. A relatively large plywood mill in Gintota wasestablished in 1941 was reopened under private management in 1994. It aims to process 2,000m3 of imported logs per month.

The total output of the plywood mills was 4,900 m3. It accounted for 36% of the totalconsumption. The domestic supply of plywood logs will decline by the end of the century. Atthe same time, rising log prices will reduce the competitiveness of the sector. Sri Lanka has nocompetitiveness for plywood production today, because of poor availability of wood. Industryis not prepared to make large investment in modern plywood mills.

There is small particle board mill using straw as raw material which has a capacity around8,000 m3/year but facing technical problems. The demand for particle boards and fibreboardwill still be so low in 2020 that it does not justify the establishment of a plant of an economicsize. Export is not realistic because, Sri Lanka has no competitive advantage in any kind ofpanel production.

There were two pulp and paper mills with combined maximum capacity of 37,500 t/year. In1993, the combined production of the two mills was about 28,500 t/year. Both of the pulpmills were designed to use non wood fibre as their main raw material, with the rest beingwaste paper and imported wood pulp. The Valaichchenai pulp production was phased out in1993 because of environmental problems, the high cost of production and the poor quality ofthe rice straw pulp. No major investments were made since the mills were started in 1975 and1978, and as a result the machinery and equipment is worn out, and productivity is poor. Inearly 1994 the mills employed about 2,700 people. The demand for paper and paperboard in2020 is projected to reach about 407,000 t compared with 130,000 t in 1993.

Other wood products industries include furniture, impregnation and the manufacture ofvarious wooden items. More than 9,000 units manufacturing furniture which employ about28,000 people were in production in 1993.



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Table 9 - Industrial forest products and pole production and wood consumption in 1993(million m3)

Product Production Roundwood consumption Sawn wood 0.507 1.280 Plywood and veneer 0.005 0.020 Wooden poles 0.341 0.341 Total 0.853 1.650

2.4 Wood Energy/Fuel Wood Status Trends and Transition

During the last two decades the consumption of energy has grown annually by about 1.7%. Theenergy sector is dominated by bio energy and the share of biomass in 1994 was about 67%.Biomass fuels are of crucial importance especially to rural people who do not have access toother energy sources. Fuel wood is also the main thermal energy source for many industries.

After the liberalization of the economy in 1977 the demand for energy increased substantially. Inaddition, the sharp increase in the price of petroleum products in 1970s resulted in the industrialsector switching from petroleum to fuel wood wherever possible.

The real price of fuel wood has increased very slowly during the last 10 years which suggeststhat fuel wood scarcity is not a serious problem at national level. However, fuel wood deficitsand high prices have been reported in certain locations due to increased transportation costs andinadequate availability of marketed fuel wood. Despite the recent price increases fuelwood isstill the relatively chief energy from which explain why the changes in the household energyconsumption pattern have been very slow.

According to a study done during the forestry master plan preparation the average per capitaconsumption of bio energy was estimated at 1.35 kg/day. This finding was compatible with theestimates obtained in 3 earlier studies and are summarized in Table 10.

Table 10 - Summary of fuel wood consumption studies

Study Year of Data collection Daily Consumption/Kg./person

Natural Resources, Energy and ScienceAuthority (NARESA)

1981 - 1983 1.36

Forestry Master Plan 1985 1.56 Consumer finance and socio economicsurvey

1987 1.48

Forestry Sector Master Plan 1993 1.35

Most of the fuel wood energy is consumed by the household sector. The share of the householdsector has declined from about 85% in 1992 to around 80% in 1995. The share of industry in1995 was estimated be 16%. The total consumption of fuelwood by households in 1993 wasestimated to be about 8.15 million tons. The supply of fuel wood by various sources are given inTable 11.



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Table 11 - Supply of fuelwood by various sources

Study Rubber wood Crop Residues Other Fuel Wood 1986-1987 Consumption survey

17% 22% 52%

1983 NARESA 18% 29% 53% 1993 FSMP 15% 33% 52%

In the industrial sector fuel wood accounts for 49% of the energy consumed in 1992 andTable 12 shows the estimated consumption of fuelwood by various subsectors.

Table 12 - Estimated consumption of fuelwood by the industrial commercial sub sector(1992)

Sub Sector Fuelwood Consumption (1000 tons) Tea 455 (43.2%) Hotels and Eating Houses 164 (15.6%) Brick and Tiles 150 (14.2%) Coconut 51 ( 4.8%) Bakeries 99 (9%) Rubber 72 (6.8%) Tobacco 13 (1.2%) Others 49 (4.7%)

2.5 Non Wood Forest Products: Status and Trends

Non Wood Forest Products (NWFP's) have an important role in the rural economy and about 14million rural people depend on the natural forests for the supply of a wide range of them. Theknowledge, skills, social customs and traditions related to these products are passed on from onegeneration to another and form a part of the traditional culture.

A majority of the Sri Lankan people in rural areas use forest plants in one form or another. Asurvey in just one area showed that 200 tree species were used by the adjacent communities.However, the depletion of natural forest cover, coupled with degradation of the same, have hadtwo major impacts on non wood forest products. Firstly, the resource base has dwindled andadversely affected the welfare of rural people. Secondly, exploitation of the remaining resourceshas been intensified. In some areas NWFP resources have been over-exploited and biodiversityhas been lost. For some communities traditionally depending on non wood forest products, thisamounts to the disruption of the traditional way of life.

Due to the fact that these include large number of heterogeneous products, the lack of data onextraction rates, market prices and time used for collection and the subsistence nature of much ofthe consumption, it is very difficult to assess the economic contribution of these products.However, the few case studies undertaken provide a good indication of their importance in therural economy. In the Knuckles region on an average about 16% of the total family income and5% of the money income come from non wood forest products. In addition, in some specificplaces cultivation of Cardamom in the forests provides about 26% of the total family income.The per hectare value of non wood forest products in the Knuckles study was found to be about



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Rs. 3,700/= (IUCN 1991.) From the survey of 135 households living close to Sinharaja RainForest the average annual income from non wood forest products was estimated to be about Rs.600/= per ha. The nationwide survey on traditional uses of forests (IUCN 1995) has revealedthat the income obtained by families who are engaged in collection and utilization of NWFP inlowland rain forest amounts to Rs. 28,000 per family per year, in tropical montane rain forests,Rs. 21,000/=, in Savanna land Rs. 7,500/= and dry zone forests ranging from Rs. 5,000/= to Rs.15,000/=.

The development programmes in the non wood forestry sector include conservation of theresource base through establishment of a protected area network; undertaking acomprehensive research and development programme which includes resource inventories,ethono botanical studies, growth yield studies and studies on natural regeneration, and onpropagation techniques and genetic improvement; identification of constituents of traditionalremedies and pharmacological value of medicinal plants; pharmaceutical development;improved processing, transport and storage techniques. The Ministry of Indigenous Medicineof Sri Lanka has already started a research programme to identify constituents of traditionalremedies and pharmacological evaluation of medicinal plants. In addition it is also envisagedthat domestication and cultivation of some identified non wood forest product species will bedone, coupled with a comprehensive network for extension and other support services. It isalso important that market and feasibility studies be done and the development of a databaseon resource and markets be carried out. Dissemination of market information and promotionof small scale industries also are to be undertaken. The importance of policy and legal reformsand the establishment of a inter-sectoral mechanism in order to achieve better coordination isalso envisaged.

2.5.1 Medicinal Plants

It is estimated that more than 50% of the population use Ayurvedic medicine, often togetherwith modern medicine, and about 30% use only Ayurvedic medicine. Medicinal Plants havebeen used to treat or cure 300 ailments in Sri Lanka. It is also recorded that well over 1,000 ofthe 3,500 plant species available in Sri Lanka are used in traditional medicine. The values ofmedicinal plants collected from some specific forest areas are given in table 13. (Socio-economic survey IUCN 1995).



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Table 13 - Value of Medicinal Herbs collected

Name of the Forests Value in Rs. per family per year1. Delwala 255.502. Dellawa 112.003. Kekunadura 15.004. Kalugala 423.505. Kottawa Kohomba 358.806. Welihena 153.007. Wiharakele 848.008. Oliagankele 104.009. Kandewattegoda 19.0010.Nahitiya Madampe 136.0011.Knuckles 2,500.00

Medicinal plants are found in natural forests and non forest lands and to a lesser extent fromherbal gardens. The proportion that comes from the natural forest is unknown. However, morethan 50% of the plants identified as used in Ayurveda are found in the natural forests. In onestudy area in the Adam’s peak range, it was found that the villagers collect around 200medicinal plant species. There is no scientific information on the sustainable yields of themain medicinal plants or their annual extraction rates. However, it is known that manyimportant plants such as Bim Kohomba (Monrovia pumila), Asoca (Saraka asoca), Rathadun(Pterocarpus spps) have become rare due to over exploitation.

The level of employment in the medicinal plants sector is not known as extraction is notrecorded and it is not done on a full time basis. Most families living close to the naturalforests collect medicinal plants mainly for their own consumption and very few families aretraditionally involved in the collection of medicinal plants for the market. The collectors oftenbelong to the poorest income groups in the villages.

There are no estimates on the total quantity of medicinal plants used in the country or of theircontribution to economy. The only available statistics are on international trade for which thefigures from 1992-1993 are given in table 14. It is clear that imports have increased by about 54times in nominal value while the exports have increased only by about 12 times. This trend alsoreflects the fact that Sri Lanka imports high value added products and exports low value addedones.

Table 14 - Imports and Exports and Medicinal Plants (in Rs. million): 1990-1993

Year Imports Exports1990 0.76 7.871991 0.20 6.291992 34.83 32.111993 42.31 101.31



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2.5.2 Rattan

All the rattans found in the country belong to the genus Calamus and eight of the ten indigenousspecies are endemic. Three species are of large diameter while the rest are of small diameter.Most of the rattans are extracted from natural forests and cultivation is done only on a smallscale. Except for two species, one in the dry zone and the other found in the wet lowland and theselected areas in the dry lowlands, the rest of the species are depleted and confined almostexclusively to protected areas in the lowland rain forests. However, the two species mentionedabove are of inferior quality and suitable only for low quality furniture. Although the exactextent of the rattan resources is not known, unplanned collection continues.

Despite the decline in the resource base the rattan industry continue to play an important role forthe rural communities living close to the rattan resources. According to the master plan forhandicraft development (1987), there are about 2,200 rattan craftsmen and 700 families involvedin the industry. About half of them are employed full time while the others on part time. Therattan industry is spread over 13 of the 25 districts in Sri Lanka.

Due to the non availability of high quality rattan and the dwindling resource base, producers ofhigh quality rattan furniture have started importing high quality rattan from Indonesia, Singaporeand Malaysia and 80% of the rattans consumed by these industries are imported. Import andexport values of rattan furniture and rattan from 1991-1994 are shown in table 15.

Table 15 - Value of Import and export of Rattan and rattan furniture (in Rs. million)

Year Imports Exports1991 0.81 0.021992 2.21 0.031993 1.67 1.41994 1.1 0.003

2.5.3 Bamboo

According to a resource survey there are about 30 species of Bamboo available in Sri Lanka.Out of these, one genus and eight species are endemic. Out of the 20 species which areintroduced, seven are cultivated extensively. Many of the endemic bamboos are of shrubbytypes. Out of the five species commonly used, three are native and two are introduced.

Bamboos are used in cottage handicraft industry and also in construction industry. Themanufacture of bamboo handicraft is almost entirely based on the small diameter batta(Ochlandra stridula) and Una Bamboo, (Bambusa Vulgaris). They are used for themanufacture of utensils, and decorative handicrafts too. Bambusa Vulgaris is the mostimportant bamboo species used in the construction industry. According to estimates doneduring Forestry Sector Master Plan preparation, (1994) the total annual consumption is around80,000 M3.

Although there are no detailed data available on the existing stocks and annual extractionrates, it appears that there is continuing over exploitation of the indigenous bamboo's in the



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natural forests and on river banks. According to the 1987 Master Plan for HandicraftDevelopment there are about 250 families and 700 workers involved in bamboo industry.Most people who are involved in the industry use Batta to produce various items such asflower pots, cooking utensils and handicrafts They obtain a net income of approximately Rs.16,000/= per year. (IDRC 1991).

2.5.4 Edible Plants

According to the traditional use of forests survey (1991 IUCN), there is a distinct relationamong major vegetation types (forests types) and food collection habits. High collection rateshad been recorded in the intermediate and the dry zone forests where this amounts to around65% to 70% of the households. Whereas the relation is low in the montane zone forests whereit is only around 20% of the households.

Value of edible plants collected from some specific natural wet zone forests are given in thetable 16 (IUCN 1991).

Table 16 - Value of Edible Plants: Collectable

Name of the Forests Value in Rs. per AnnumOliyagankele 594.50Dellawa 888.00Nahitiya/Madampe 222.50Delwala 335.50Kottawa Kombala 2,116.00Welihena 2,240.00Viharakele 2,204.00Kandewattegoda 985.00Kekunadura 226.00Kalugala 447.50

However, the collection of edible plants is mainly for consumption purposes and values givenabove indicate only the income generated by rural communities adjacent to these forests areasby selling the collected edible plants.

One of the commercialized industries in the category of edible plants is Kitul (Caryta Urens)products. Although this tree provides a variety of products the most popular one is the sap.Kitul sap is the base for widely popular local beer (toddy), treacle and jaggery. Kitul tappinghas a long history in Sri Lanka and is noted to be one of the important traditional trades in thepast. There is even a special group or caste of people who are involved in kitul tapping andjaggery making. There are two marked clusters of kitul tapping areas in the state naturalforests. The largest is in the southern and south western part of the country (Ratnapura, Galleand Matara districts)

According to a recent survey, the contribution of kitul products to the total income is quitesignificant. The income from kitul products is around 70% of the total non wood forestsproduct income. The average value of kitul products from low land rain forests is around Rs.



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10,000 per hectare, per year. Table 17 indicates the income from kitul products in someselected forests in the wet zone.

Table 17 - Value of Kitul Products from wet zone Forest Areas:

Name of the Forests Average Income from Forests(Rs. per hc. per year)

Income from KitulRs. hc. per year

Percentage

Dellawa 13,085.00 9,260.00 70.7Erathna-Gilimale 17,564.00 15,749.00 69.6Kalugala 10,479.00 2,399.00 22.8Bambarabotuwa 15,675.00 13,741.00 87.6Delwala 20,088.60 17,762.50 88.7Nahitiya/Madampe 10,938.50 7,410.00 68.00

Though the production is localized there is high demand for kitul products all over the countryboth in rural and urban markets. However the marketing structure of kitul products has notbeen studied well. One of the basic problems in kitul products marketing is the nonavailability of quality control measures. Marketing of kitul toddy has been seriously affected,due to existing legal measures.

2.5.5 Resin Tapping

Pinus caribaea plantations are being tapped commercially for oleo resin at present. Onlyaround 2,500 ha. are being tapped commercially by the private sector under a long term leaseagreement at present. It is estimated that around 8,000 ha. of the 11,000 ha. available could betapped commercially and annual resin production from 8,000 ha. will be around 4,500 to6,000 metric tons, which is enough for a small scale resin processing industry. If tapping iscarried out efficiently around 3,200 people could be employed in tapping and another 200-300people could be employed in resin transport, processing and trade. The Forest Department hasinitiated action to lease these plantations to prospective tapping companies.

In 1993 the derivatives of oleo-resin such as rosin and turpentine worth about Rs. 40 millionwere imported to Sri Lanka. If an efficient resin industry is established the major part of theabove amount could be produced in Sri Lanka. In addition there is very good demand forturpentine and rosin in the world market at present.

2.6 Services of the Forest, Status and Trends

Forests provides numerous services in addition to the goods which are normally attributed tothem. Some of the services provided by the forests are:

a) Provide good micro-climate for a comfortable living;b) They help to conserve top soil and prevent erosion, earth slips and landslides;c) Serve as barriers to strong desiccating winds, storms and cyclones;d) Ensure dry weather flow of water in streams;e) Stabilize the oxygen and Carbon-dioxide ratio in the atmosphere;



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f) Help in reducing ultraviolet radiation that reaches the earth through the thinning of ozonelayer of the upper atmosphere.

Sri Lanka's mid mountains which form the main watershed area were covered with forests atthe turn of the century, but were cleared to plant Coffee initially and then Tea by the Britishduring early parts of the century. This major deforestation together with clearing for vegetablecultivation has created enormous environment problems such as soil erosion, siltation ofreservoirs and rivers, flash floods and landslides. Table 18 shows the effect of conversion offorest areas to other land uses on soil erosion in the upper Mahaweli watershed.

Table 18 - Annual soil losses from major land use in Upper Mahaweli Watershed

Land Uses Soil Losses (t/ha.)Dense forestDegraded forest and scrub

Degraded grass landSeedling tea under poor management

Chena and tobaccoVegetable gardens

12530527025

A study done recently in the Mahaweli area has shown that the lifespan of the major reservoirsbuilt under this project has been reduced almost by half due to siltation. In addition flashfloods and earth slips during the rainy season have become a common occurrence. Therefore,the importance of forest cover is the middle watershed areas are vital for the downstreamagriculture, hydro electric power generation and maintenance of agricultural productivity.

Ecotourism and recreation have become one of the other important services of the forest areas.Especially the national parks under the Department of Wild Life Conservation attract manyvisitors both local as well as foreign. The table 19 below gives the number of visitors to someof the National Parks in Sri Lanka and the income earned through admission fees.

Table 19 - No. visitors and income earned from National Parks

Name of theNational Park

1994 1995

No. of Visitors Income Earned(Rs. Million)

No. of Visitors Income Earned(Rs. Million)

Yala 200,000 30.0 220,000 36.0Udawalawe 18,000 3.4 23,000 4.2Bundala 21,000 3.7 26,000 5.3

Apart from these areas some forests under the Forest Department also attract visitors. The twomain forests areas are Sinharaja which is a world heritage area and Udawattekele (an urbanforest developed during ancient kingdom) in the central part of Sri Lanka. The numbers ofvisitors to these areas are given in table 20.

Table 20 - No. of visitors: to Forest Department areas

Name of the Forests 1993 1994



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SinharajaUdawattakele

14,19611,688

18,35814,318

In addition Forest Department issues permits at a very nominal fee for small blocks of naturalforests which are termed “hermitage” for the use of Buddhist monks as a residential place formeditation. This is one of the traditional practices that has come down from the days whenSinhalese Kings ruled the country. It is also a good method of forest protection and no illegalcutting normally takes place in these forest blocks. In most instances the resident monks havehelped the Forest Department to rehabilitate degraded forest areas with local species. Thispractice should be encouraged even though the areas involved are small.

There are probably no more than a thousand tribal people now living in the forests in SriLanka. Those that remain constitute the Vedda people found in the eastern part of the country.They have been given a block of forests to enable them to pursue some of their forest basedactivities; whether they really do pursue them is debatable.

Students and academic staff of various Universities and environment groups use the forestareas for study purposes. One of the most popular places for research is the Sinharaja ForestReserve in the South West of Sri Lanka which is listed as a natural world heritage site. Inaddition Horton Plains National Park, Knuckles Forest Reserve and Hakgala strict NatureReserve also attract lot of personnel for research purposes.

2.7 Institutions and Policies

2.7.1 Policies and legislation

A national forest policy was developed in 1995 and accepted by the government. The scope ofthe policy is forestry in a broad sense including its biophysical, environmental, socio- politicaland economic components. The policy acknowledges concern for safeguarding the remainingnatural forests for prosperity so as to conserve biodiversity, soil and water resources. Itemphazises the importance of retaining the present natural forest cover and increasing theoverall tree cover. A large part of the forests are to be completely protected through theestablishment of a protected area system for the conservation of biodiversity, soil and water.Multiple use forestry is to be promoted. The remaining natural forests are to be used sustainablyto provide for the growing demand for bio-energy, wood and non wood forest products andvarious services especially for the benefit of the rural population without ignoring environmentalobjectives.

The policy also recognizes the crucial role to be played by home gardens, other agro forestrysystems and trees on non forest land, in supplying timber, bio-energy and non wood forestproducts. The importance of development of partnerships with local people communities, NGOsand the local private sector are also emphasized in the policy. The people who co-existed withthe forests for centuries have close cultural and even spiritual linkages with them and the policyemphazises that these values must be recognized and respected.

The policy aims therefore, at broadening the institutional frame work for forest managementwith clearly defined roles and responsibilities for the forest partners. Farmers, State sector,



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community organization, NGOs and small and medium scale commercial entrepreneurs will allhave a role in activities such as protecting the forests, growing trees to meet the wood and thebio-energy requirements, supplying raw material for wood based industries and the harvesting,transporting, processing and distribution of various forest products. Action has been initiated tomake legal reforms to reflect the above mentioned national forest policy. In this context it isemphazised that the following aspects were considered in the formulation of new legislation:

a) The legislation to be drafted should reflect the new policy as a whole and ad-hoc drafting oflegislation to meet particular but limited problems should be avoided.

b) Special attention must be paid to providing a supporting framework for the involvement of

the various development partners in forestry development including in policy formulation. c) The forest and protected area classification has to be rationalized and in each type of area the

roles and responsibilities of the various development partners, the management objectivesand the allowable activities, must be clearly specified.

d) It should have the necessary provisions for promoting the participation of the people and

non-state sector in tree growing, management, and protection. Laws have to be introducedspecifically enabling leasehold forestry, formation of user groups and private tree growingand clarification of the land and tree tenure arrangements.

e) The necessary legal framework must be provided for implementing forest development

activities through incentives, sanctions and other regulatory measures. f) It should define a mechanism for the regular revision and updating of sectoral plans. g) A balance must be achieved between sanction-based and market-based regulations. h) Sanctions must be reviewed and updated to reflect current trends and social realities. i) Easy legal mechanisms such as mediation and special "Forestry Courts" must be considered

for the resolution of forest disputes. j) Mechanisms for the public involvement in enforcement and implementation must be

developed and defined in legislation.

2.7.2 Institutions

There are three main institutions of government which are involved in forestry activities. Theyare the Forest Department (FD), the Department of Wildlife Conservation (DPWC) and the StateTimber Corporation. There seems to be a considerable overlapping between the functions ofDepartment of Wildlife Conservation and Forest Department specially in conservation aspects.At present both the Timber Corporation and the Forest Department are under the Ministry ofAgriculture, Lands & Forestry and the Wildlife Department (which was also under the sameMinistry till recently) was handed over to the Ministry of Public Administration, LocalGovernment, Plantation Industries and Parliamentary Affairs. The Forestry Department isresponsible for the management of forest areas under its jurisdiction which includes production



25

as well as protection forests. The Forest Department is headed by the Conservator of Forestsassisted by three Additional Conservators responsible for operations, research andadministration. The operational divisions in the Head Office are silviculture, forestry inventoryand management, environmental conservation, extension and education, planning andmonitoring and protection and law enforcement and all of these sections are headed by a DeputyConservator of Forests. In addition personnel administration and finance divisions areresponsible for administration (personnel) finance matters respectively. The field activities areimplemented through 18 Forestry divisions, 68 forest ranges and 34 forest beats.

The Department of Wildlife Conservation has main responsibility for conservation of wildlife inthe areas under its jurisdiction. The department is headed by the Director with the assistance ofan Additional Director. In addition there are five Deputy Directors responsible in management,field operations, research, and training veterinary science and administration.

The State Timber Corporation is the government corporation responsible for harvesting,processing and the sale of wood material from the state forests. At present the State TimberCorporation has monopoly access to state produced woods, which has resulted in a somewhatinefficient operation. It is intended to do away with this monopoly access in the future whichwill pressurise the State Timber Corporation to improve its operations.

In addition, the Ministry of Transport, Highways, Environmental and Women Affairs and thecentral environmental authority (which is an institution under this Ministry) are responsible forthe development of Environmental Policy and development and enforcement of the legislationincluding monitoring of environmental regulations and coordinating environmental impactassessments.

Private companies in the plantation sector play an important role in forestry, and rubber estatesare a major source of timber and fuel wood whereas tea estates also have fuel wood plantations.The tea industry is the main industrial consumer of fuel wood. At present most of the timber isprocessed by small and middle scale private entrepreneurs. Farmers and other small tree growersplay a key role in the forestry sector. They are the most important producers of the timber andbioenergy as well as consumer of various forest products and services. Farmers together withrural people are in key positions in managing protecting and natural forest resources.

There are 1,000 NGOs at present in Sri Lanka and more than 200 of them deal with forestryeither directly or indirectly. These NGOs represent a valuable resource that should be tapped todevelop forestry and conserve the environment.

The University of Sri Jayewardanepura offers a two-year M.Sc. degree in environmental andforestry and also offers a forestry as a special subject in the undergraduate B.Sc. programme.The postgraduate institute of agriculture under the University of Peradeniya offers courses inagro forestry and hydrology under its M.Phil and Ph.D. courses. The Forest Departmentconducts two-year in-service diploma courses and one year certificate courses at the Sri LankaForestry Institute.

3) FUTURE



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3.1 Assessments of Future Supply and Demand for Forest Products and Services

Annual sawn wood consumption per 1000 person in 1993 was estimated to the 31 m3. The sawnwood demand is projected to grow from .567 million m3 to 0.889 million m3. in 2020. Thiscorresponds to an average annual growth rate of 2%. The annual demand projections up to year2020 is given in the table 21.

Table 21 - Projected annual sawn wood demand in 1995-2020 (million m3)

Year 1995 2000 2005 2010 2015 2020Demand 0.567 0.626 0.688 0.753 0.82 0.889

The consumption of plywood and wood based panels as a whole is low by internationalcomparison. The annual consumption projections are shown in table 22.

Table 22 - Projected demand for wood based panels 1995-2020 (m3)

Year Plywood Demand Fibre board Demand Particle boardDemand

Total PanelsDemand

1995 30,000 3,000 1,900 34,9002000 34,000 4,000 3,500 41,5002005 39,000 6,000 3,300 48,3002010 45,000 9,000 4,300 58,3002015 52,000 12,000 5,500 69,5002020 59,000 16,000 7,000 82,000Average AnnualIncrease

2.8% 7.1% 5.3% 3.5%

Per capita consumption of paper is very low by international standards. In 1993 paperconsumption per capita was 7.3 kg. The demand for paper and paper board is projected to reachabout 470,000 t per year in 2020 compared with 130,000 t in 1993. The annual projection up tothe year 2020 are given in the table 23.



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Table 23 -Projection of Annual consumption of paper and other related products

Year Newsprint Printingand writing

IndustrialGrades

Boards Others Total Imports

1995 25 34 56 28 2 145 1162000 29 41 35 34 3 182 1542005 33 49 97 39 4 223 1942010 37 58 126 58 6 272 2442015 41 69 162 53 9 333 3042020 45 81 207 61 12 407 378Average AnnualIncrease1

2.4% 3.5% 5.3% 3.1% 7.5% 4.2% 4.8%

It is seen from the above projection that major part of the paper and paper board demand will bemet by imports.

Projected demand for poles and posts which will be used for electricity lines, telephone lines,construction and fencing are given in the table 24.

Table 24 - Projected poles requirements in 1995-2020 (million m3)

Year Wood Poles Bamboo Poles Total Poles1995 0.390 0.077 0.4672000 0.411 0.081 0.4922005 0.432 0.085 0.5172010 0.453 0.085 0.5382015 0.471 0.085 0.5562020 0.486 0.085 0.571Average AnnualIncrease1

0.9% 0.4% 0.8%

The demand for biomass fuel is given in table 25 while table 26 gives the roundwoodrequirements to produce the above products.

Table 25 - Demand for bioenergy in 1995-2020 (million m3)

Year 1995 2000 2005 2010 2015 2020 Average annualincrease1

Biomass Energy 0.567 0.626 0.688 0.753 0.820 0.889 1.8%

Table 26 - Projected round wood requirement ('000m3)

Year 1995 2000 2005 2010 2015 2020 Average annualincrease1

Industrial Wood 1,345.8 1,410.2 1,466.3 1,577.9 1,578.5 1,476.1 0.4%Poles and Posts 390.0 411.0 432.0 453.0 471.0 486.0 0.9%Total 1,735.8 1,821.2 1,898.3 2,030.9 2,049.5 2,062.1 0.6%

1 % change rates estimated by editor.



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According to a study done during the Forestry Master Plan preparation even under the currenttrends the increasing wood demand can be met by local supply. However it will result inunsustainable utilization of the natural forests. Thus the projection is that the import willincrease by about 1% annually. However, with the projected development under the plannedactivities of the Forestry Sector Master Plan, it is projected that the sustainable supply of woodwill increase and a surplus of wood is projected after year 2005.

3.2 Future Development and Development Objectives

The emerging picture of the forestry situation in Sri Lanka is not bright. The continuation ofcurrent trends will increase the pressure on forest resources. The expanding population base andeconomic growth will increase the demand for timber products and it is projected that the naturaldense forest cover would decline from 23.9% in 1993 to around 17% by 2020, if the presenttrends are continued.

The pressure placed upon forests of Sri Lanka is immense. Industry wants to produce sawnwood and other forest products, rural people need fuelwood to meet their energy requirements,the growing population requires land to produce additional food and environmentalists and otherconcerned people want to preserve the remaining natural forests intact. Forestry professionalsand other government officials are facing a multitude of problems and responsibilities with toofew resources to address them adequately. The forestry and land use administrators with thelimited manpower and financial resources have done a lot to manage the land and the forestunder their control. However, despite some positive developments, the challenges faced havebeen overwhelming and the responses to the major problems have fallen short.

Due to the scope and the complexity of the problems, the time needed for changing people’svalues and perceptions and the special long-term nature of forestry, it is apparent that all theproblems cannot be solved quickly. Thus the planning has to be long, at least 20-25 years. Newpolicies have to be introduced, old ones modified and policy strategies have to be formulated,legislative and administrative reforms need to be done to implement the approved policies. Thenewly formulated Forestry Sector Master Plan provides a guiding framework for carrying outthese activities in a systematic and holistic manner and come out with various developmentactivities as described below:

• In the context of the conservation of biodiversity development, major objective will be thecreation of a protected area network fully representative of forest eco systems, communitiesand species for the purpose of the conservation of biodiversity. It is also envisaged that theseprotected areas are managed in such a way that benefits from protection also flow to thelocal people. The development of a knowledge base regarding current distribution and statusof biodiversity, its values and traditional uses for better conservation planning andmanagement is also intended.

• The designated areas for multiple uses will be managed productively wherever possible

on a joint basis with the rural people in order to obtain product and services that the societyneed. It is also envisaged that proper management will contribute substantially to the livingstandards of rural people through the development of rural based industries.



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• The home gardens which has a crucial role at present in the supply of roundwood andfuelwood will be made more productive and managed sustainably by the rural peopleyielding a sustainable supply of products and services that the society needs. It is alsoenvisaged that trees will be optimally incorporated in various forest farming systems andmore trees will contribute substantially to raising the incomes and the living standards of thepeople. Wood production aspects will be integrated in research and extension activitiesdealing with non forest wood supply sources such as rubber and coconut.

• As the supply of timber from natural forest will be restricted in near future, the commercial

plantations will be one of the major sources of timber supply. Thus non governmentsector will be involved actively, in commercial forestry plantation development throughlease hold forestry on government land and tree growing on the private land. In additionalready established plantations will be brought under scientific management in order toproduce wood in an economically efficient and environmental friendly manner. Properincentive scheme and a technical support scheme will be developed for the promotion of thiscomponent.

• The overall development objective of the non wood forestry sector is to realize the full

potential of forests through multiple use so as to generate and maximize sustainable benefitsto the present generation while preserving the resources base for the future generation. Theresource base will be conserved both in-situ and ex-situ in order to provide non wood forestsproducts sustainably mainly for the benefit of local people and rural industry. The non woodforest products will be produced increasingly by way of domestication and cultivation. Ruralindustries based on non wood forest products from sustainable sources and efficient nonwasteful production will be established. Required support services will be established inorder to develop and adopt better processing, grading and quality control techniques, tominimize waste, to assure a fair income to the rural people who are engaged in thecollection, production, and processing of non wood forest products.

• A well planned human resource development programme will be developed to create an

adequate number of motivated trained and capable forestry partners engaging in all kinds offorestry activities. In order to achieve this, it is proposed to build up high quality educationaland training institutions and an efficient extension and delivery of support services toeffectively provide for the proper motivation, guidance, information and other support to thedifferent forestry partners.

• Research programmes will be initiated to provide information needed by the people of Sri

Lanka to protect, conserve and manage their tree and forest resources for the well being ofthe present and future generations. Research findings will be conveyed to the end users in atimely manner and in a language and form easily understandable, applicable and adoptableas appropriate to specific circumstances.



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List of Working Papers already released

APFSOS/WP/01 Regional Study - The South PacificAPFSOS/WP/02 Pacific Rim Demand and Supply Situation, Trends and Prospects:

Implications for Forest Products Trade in the Asia-Pacific RegionAPFSOS/WP/03 The Implications of the GATT Uruguay Round and other Trade

Arrangements for the Asia-Pacific Forest Products TradeAPFSOS/WP/04 Status, Trends and Future Scenarios for Forest Conservation

including Protected Areas in the Asia-Pacific RegionAPFSOS/WP/05 In-Depth Country Study New ZealandAPFSOS/WP/06 In-Depth Country Study Republic of KoreaAPFSOS/WP/07 Country Report - MalaysiaAPFSOS/WP/08 Country Report - Union of MyanmarAPFSOS/WP/09 Challenges and Opportunities: Policy options for the forestry sector

in the Asia-Pacific RegionAPFSOS/WP/10 Sources of Non-wood Fibre for Paper, Board and Panels

Production: Status, Trends and Prospects for IndiaAPFSOS/WP/11 Country Report - PakistanAPFSOS/WP/12 Trends and Outlook for Forest Products Consumption, Production

and Trade in the Asia-Pacific RegionAPFSOS/WP/13 Country Report - AustraliaAPFSOS/WP/14 Country Report - ChinaAPFSOS/WP/15 Country Report - Japan: Basic Plan on Forest Resources and Long-

Term Perspective on Demand and Supply of Important ForestryProducts

APFSOS/WP/16 Country Report - Sri Lanka

asia-pacific forestry sector outlook study working … · ministry of forestry, sri lanka country...

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