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SRI LANKA: MANAGING COASTAL NATURAL WEALTH © 2017 the World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet

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SRI LANKA: MANAGING COASTAL NATURAL WEALTH © 2017 the World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet ENVIRONMENT AND NATURAL RESOURCES GLOBAL PRACTICE, SOUTH ASIA REGION SERIES SRI LANKA: Public Disclosure Authorized MANAGING COASTAL NATURAL WEALTH Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized MAY 2017 ENVIRONMENT AND NATURAL RESOURCES GLOBAL PRACTICE, SOUTH ASIA REGION SERIES SRI LANKA: MANAGING COASTAL NATURAL WEALTH © 2017 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Photographs from other sources excepted. Attribution—Please cite the work as follows: World Bank. 2017. “Sri Lanka: Managing Coastal Natural Wealth” Washington, DC, The World Bank Group. All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@ worldbank.org. CONTENTS ACKNOWLEDGMENTS 1 EXECUTIVE SUMMARY 2 INTRODUCTION 8 CHAPTER 1: Sri Lanka’s Coastal Spotlight 10 A. Natural Endowment 10 B. Sri Lankan Economy 13 C. Coastal Economy 15 CHAPTER 2: Institutional and Environmental Challenges 21 A. Resource Degradation 22 B. Coastal Pollution 24 C. Coastal Resilience and Disaster Management 26 D. Regulation and Management 29 CHAPTER 3: Opportunities and Priorities for Improvement 35 A. Coastal Fisheries 35 B. Coastal Tourism 37 C. Cross-Sectoral Areas 38 CHAPTER 4: A Way Forward 43 ANNEX 1: Stakeholder Consultations – Perspective of Provinces 45 ANNEX 2: Aquaculture Potential in Coastal Sri Lanka 47 ANNEX 3: Inter-Institutional Administrative Structure for Coastal Zone Management at the National and Provincial level 49 ANNEX 4: Integrated Coastal Zone Management – Examples of Successful Practice 50 APPENDIX WITH USEFUL DATA 54 REFERENCES 56 iii Sri Lanka: Managing Coastal Natural Wealth FIGURES Figure 1: Sri Lanka mangrove map 10 Figure 2: Coastal habitats 11 Figure 3: Major water bodies 12 Figure 4: Land cover in Sri Lanka 12 Figure 5: Agglomeration analysis using night light maps 13 Figure 6: Evolution of poverty rate (2002 v 2012) 14 Figure 7: Tourism, fisheries, and agriculture in livelihoods of coastal communities 15 Figure 8: Contribution to GDP of fishery commodities exports and ratio of EEZ to land area 16 Figure 9: Fish contribution to total and animal protein supply in 2011 16 Figure 10: Area of Sri Lanka’s Exclusive Economic Zone 17 Figure 11: Shrimp production in Sri Lanka (1978 – 2015) 19 Figure 12: Coastal tourism – room capacity 20 Figure 13: Coastal erosion, land use and natural disasters in the country are strongly linked to tropical monsoons 22 Figure 14: Loss of green cover and sandy beach in Galle Harbor 23 Figure 15: Solid waste dumped in a lagoon 25 Figure 16: Marine fishery sector vulnerability to sea level rise exposure 26 Figure 17: Tourism sector vulnerability to flood and sea level rise exposure 29 Figure 18: Graphic illustration of the coastal zone and its limits 33 Figure 19: Roadmap for reforming fisheries 36 Figure 20: Hard structure construction 39 TABLES Table 1: Historical fish production from Sri Lankan waters 18 Table 2: Distribution of mangrove areas by district (2010) 30 Table 3: Fish and crustaceans exports of Sri Lanka 2013-2015 (USD million) 30 Table 4: Berthing tariffs (excluding Dikowita Fishery Harbor) – monthly charge for registered vessels 32 Sri Lanka: Managing Coastal Natural Wealth iv ACKNOWLEDGMENTS The Sri Lanka: Managing Coastal Natural Wealth report Practice; and Ulrich Schmitt, Program Leader for Sri was inspired by the country’s aspiration and large Lanka and the Maldives. potential for growing its blue-green economy. A major island state, Sri Lanka is dependent on the quality and The report has benefited from inputs from many availability of its coastal resources, and needs to exploit contributors, and support from the PROFISH this natural capital sustainably while improving overall program. Sub-sections of the report were drafted economic well-being and social equity. by Upali S. Amarasinghe (Professor, University of Kelaniya), Maurice Desthuis-Francis (Tourism The report was prepared by a multi-disciplinary Development Advisor), Elena Strukova Golub team of World Bank Group staff and consultants (Senior Environmental Specialist, Consultant), that included Sebnem Sahin (Senior Environmental Adriana Damianova (Environment and CZM Advisor, Economist and Task Team Leader), William Lane Consultant), Vivek Prasad (Environmental Specialist, (Senior Fisheries Consultant), Indu Hewawasam George Mason University Professor), and Tolga (Senior CZM Consultant), Charlotte de Fontaubert Cebeci (Poverty Economist, Consultant). Abdelaziz (Senior Fisheries Specialist), Randall Brummett Lagnaoui (Lead Environmental Specialist), Carter (Senior Fisheries Specialist), and Milen Dyoulgerov Brandon (Global Lead Economist), Urvashi Narain (CZM specialist) from Environment and Natural (Lead Economist), Pawan Patil (Senior Economist), Resources Global Practice; Chantal Andriamilamia Mokshana Nerandika Wijeyeratne (Environmental (Principal Investment Officer, IFC) and Grant Milne Specialist), Rodrigo Salcedo du Bois (Poverty (Senior Natural Resources Management Specialist, Economist, Consultant), Sanjay Gupta (Water Agriculture Global Practice). Specialist, Consultant), Zhiyun Jiang (Consultant), and Joaquim Weill (Fisheries Specialist, Consultant) The team is grateful for the generous support of provided valuable advice and contributed to the Sri Lankan Ministry of Fisheries and Aquatic the production of the report. John Crawley and Resource Development, and the Ministry of Mahaweli Janis Bernstein provided editorial assistance with Development and Environment staff for their assistance support from Juliette Makandi Guantai, Niluka and collaboration. The team would like to particularly Nirmalie Karunaratne Sriskanthan and Shane thank Secretaries Mangalika Adikari (Ministry of Andrew Ferdinandus. David Kaczan (Environmental Fisheries and Aquatic Resources Development), Udaya Economist) and Jia Jun Lee (Research Analyst) R. Seneviratne (Ministry of Mahaweli Development assisted with mapping, editing, and production. and Environment), Bandula Wickramaarachchi (Ministry of Primary Industries), and Rashmini We would like to thank our generous peer reviewers Mather (Advisor, Prime Minister’s Office). The team who, at various stages, advised the team and acknowledges the continuous support from Nimal provided valuable comments. These include Andrea Chandaratne (Director General, National Aquaculture Liverani (Program Leader), Richard Damania Development Authority (NAQDA), Chris Tilaka- (Global Lead Economist), Miguel Angel Jorge Sri Dharmakirti (Chairman, National Ocean Affairs (Senior Fisheries Specialist), Glenn-Marie Lange Committee), and R.A.S. Ranawaka (Deputy Director, (Senior Environmental Economist), Helena Naber Coastal Conservation Department). (Senior Environmental Specialist), Rosanna Nitti (Senior Urban Specialist), Zhiyu Jerry Chen (Senior The team is also grateful for the guidance and Urban Specialist), and Yoonhee Kim (Senior Urban leadership of Idah Z. Pswarayi-Riddihough, World Specialist). Bank Country Director for Sri Lanka and the Maldives; Kseniya Lvovsky, Practice Manager for South Asia Cover and back cover photographs provided by Region, Environment and Natural Resources Global Mokshana Wijeyeratne and Andrew Zakharenka. 1 Sri Lanka: Managing Coastal Natural Wealth EXECUTIVE SUMMARY Coastal areas are essential to Sri Lanka’s economic the economies in the Northern and Eastern provinces development, accounting for the highest concentration are much less developed. According to the official of population and economic activity. Sandy beaches, statistics (2013), there are 1.49 million people in Sri dunes, lagoons, estuaries, fresh water marshes, Lanka living below the poverty line, with higher rates minerals, mangroves and reefs enrich some 1,600 km of poverty concentrated in the Northern and Eastern of coastline that surrounds the “pearl shaped” island. areas. The most dynamic growth and lowest poverty Approximately 33 percent of Sri Lanka’s population levels occur around Colombo, Kandy, and Galle, and lives in coastal areas that support diverse livelihoods, along the corridors connecting these cities within from fishing to tourism to manufacturing and modern the Western province. The rest of the coast supports urban services. The coastal ecosystems are uniquely a primarily rural population that relies heavily on important as they enable multiple human activities. natural resources. Although coastal areas tend to be the poorest, many economic opportunities in these Among all economic activities, tourism and fisheries
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