SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

COASTAL RESOURCE MANAGEMENT PROJECT

IN

SRI LANKA

July 1999 CURRENCY EQUIVALENTS (as of 14 July 1999)

Currency Unit – Sri Lanka Rupee/s (SLRe/SLRs) SLRe1.00 = $0.0140 $1.00 = SLRs71.425

ABBREVIATIONS

CBO - community-based organization CCD - Coast Conservation Department CERM - coastal environment and resource management CFHC - Ceylon Fisheries Harbours Corporation CRMP - Coastal Resource Management Project DFAR - Department of Fisheries and Aquatic Resources DFEO - District Fisheries Extension Office EIA - environmental impact assessment FPIU - Field Project Implementation Unit MFARD - Ministry of Fisheries and Aquatic Resources Development MSY - maximum sustainable yield NGO - nongovernment organization PIU - Project Implementation Unit PMO - Project Management Office

WEIGHTS AND MEASURES ha - hectare km - kilometer km2 - square kilometer m - meter m3 - cubic meter t - ton

NOTE

In this report, “$” refers to the US dollar. CONTENTS

Page

MAP ii

I. INTRODUCTION 1

II. DESCRIPTION OF THE PROJECT 1

III. DESCRIPTION OF THE COASTAL AND MARINE ENVIRONMENT 2

A. General Environmental Conditions 2 B. Site-Specific Conditions 5

IV. ALTERNATIVES 8

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 9

A. Positive Impacts 9 B. Potential Adverse Impacts and Mitigation Measures 12

VI. COST-BENEFIT ANALYSIS 17

VII. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING 18

A. Institutional Requirements 18 B. Monitoring Program 18

VIII. PUBLIC INVOLVEMENT 19

IX. CONCLUSIONS 20

APPENDIXES 21 I. INTRODUCTION

1. The Government of Sri Lanka requested assistance from the Asian Development Bank to finance the design and eventual implementation of the Coastal Resource Management Project (CRMP), which will focus on environmental protection and poverty reduction through integrated coastal resource management (CRM), including coastal erosion control, and will address institutional strengthening issues. The proposed CRMP is designed to arrest the increasing loss and degradation of coastal habitats and prevent the overexploitation of coastal fish stocks in order to ensure the sustainable development and management of the coastal resources in selected areas of the country.

2. This summary environmental impact assessment (SEIA) report presents the findings of the EIA of the coastline stabilization component and the fishery harbors and anchorages subcomponent of the CRMP and the initial environmental examination of the coastal environment and resource management (CERM) component. The report also includes mitigation measures to be incorporated in the detailed engineering design of the proposed physical infrastructure facilities and to be implemented during the construction and operation of the facilities. A proposed environmental monitoring plan is also presented as part of the report. The EIA report, as well as this SEIA, was prepared as part of the feasibility study of the proposed CRMP.

3. The concerned Government agencies have reviewed the EIA report and its summary, and have concurred to circulate the SEIA to the Board. The Government has advised the Bank that more detailed studies will be carried out for fishing harbors, anchorage sites and sand extraction sites in accordance with its relevant regulations upon completion of site specific detailed designs that will be prepared during the implementation of the proposed Project. These studies will be reviewed and cleared by the concerned Government agencies prior to the start of the works.1

II. DESCRIPTION OF THE PROJECT

4. The CRMP will comprise four components: (i) coastline stabilization, (ii) coastal environment and resources management, (iii) fisheries management and fish quality improvement, and (iv) institutional strengthening, and will be implemented in selected areas in six administrative districts along the southwestern, western, and southern coasts of the country: (i) Colombo, (ii) Galle, (iii) Gampaha, (iv) Hambantota, (v) Kalutara, and (vi) Puttalam.

5. The coastline stabilization component will be implemented in seven coastal segments from Galle to Chilaw, along 52 kilometers (km) of a total 210 km of coastline. The engineering measures proposed for establishment at these sites will include groins, revetments, offshore breakwaters, artificial beach nourishment, and a combination of these methods to obtain the optimum stabilization scheme in terms of construction and establishment cost, maintenance cost, and functionality.

6. The CERM component will introduce a series of interventions at the national and local levels. National-level activities will include revising and updating the Coastal Zone Management Plan, information and database strengthening, and building of environmental awareness through a nationwide information, education, and communication campaign. At the local level, activities will be implemented using a modular approach where different combinations of the following modules are proposed for each site according to its management needs: (i) community

1 The Government relevant regulations require preparation of detailed management and monitoring plans based on detailed site specific studies and in further consultation with stakeholders concerned. strengthening through the establishment of a community coordinating committee; (ii) awareness building through local-level information, education, and communication, and the establishment of community and visitor awareness centers; (iii) special area management planning or the preparation of integrated plans for a naturally defined area or system with the involvement of local communities; (iv) habitat conservation and resource management activities such as coral reef rehabilitation and transplantation, lagoon management including delineation of lagoon boundaries, mangrove and wetlands management, and biodiversity conservation, sustainable ecotourism, and outdoor recreation; (v) measures to improve water exchange in lagoons; and (vi) social programs such as livelihood enhancement, social infrastructure delivery, solid waste management, and historic and cultural site preservation. The activities to be implemented are shown in Appendix 1.

7. The fisheries management and fish quality improvement component will consist of three subcomponents: (i) fisheries management, (ii) fish quality improvement, and (iii) fishery harbors and anchorages. Component activities will be implemented at the national level and at specific sites, in conjunction with CERM activities or as stand-alone activities such as fishery harbors for establishment at selected sites. The harbors and anchorages will be designed with fish unloading, handling, and marketing areas that conform to international health and hygiene standards. Civil works will include dredging; rock excavation; and construction of breakwaters; quay walls; revetments; and shore services such as fish handling sheds, net repair sheds, and fueling facilities. All the selected sites will be provided with access roads, toilets, perimeter fences, water, electricity, and area lighting. Auction sheds will be provided with adequate freshwater supply and with toilets and wash areas for fish, boats, and people using the harbor and anchorage.

8. The institutional strengthening component will aim at enhancing the institutional capabilities of concerned Ministry of Fisheries and Aquatic Resources Development (MFARD) agencies and community organizations in resource management. The component will have a substantial training and technical assistance element that will target MFARD personnel (i.e., at ministry, department, corporation, and agency levels) as well as community beneficiaries as trainees. It will also strengthen MFARD’s data collection, processing, and database management capabilities through providing additional staff and equipment for data collection and management.

III. DESCRIPTION OF THE COASTAL AND MARINE ENVIRONMENT

A. General Environmental Conditions

1. Physical Features

9. Sri Lanka sits on a relatively narrow continental shelf that ranges in width from 45 km in the northeastern and northwestern coasts to 8 km along the southeastern and eastern coasts. The country has a total land area of 44,250 square kilometers (km2). The northern shelf merges with India, forming an extensive shallow bank consisting of the Gulf of Mannar, Palk Strait, and Pedro Bank. The total length of Sri Lanka’s coastline is 1,770 km. The country claimed a 200- nautical mile exclusive economic zone (EEZ) in 1976, adding to its territorial waters a total of 233,000 km2.

10. The climate of Sri Lanka is influenced by two monsoon and two intermonsoon periods. The southwest monsoon, which occurs from May to September, is associated with cyclonic wind circulations or depressions, and is marked by heavy rainfall and squally weather, especially in the southwestern seaboard. The northeast monsoon period occurs from December to February, and is characterized by heavy rainfall more or less confined in the northeastern half of the country, and with wind generally coming from an easterly direction. Wind becomes generally light during the two intermonsoon periods, one from March to April and the other from October to November.

11. Hydrographic information collected from research surveys conducted from 1978-1980 shows that sea surface currents are directly influenced by the monsoon and are often strong at the beginning and end of the southwest monsoon and during the entire northeast monsoon. During the southwest monsoon, the general oceanic circulation is from west to east, with current velocities of 2-3 knots near the shelf. The circulation is reversed during the northeast monsoon and current velocities are only 1-2 knots in this period. In general, the currents are stronger off the east coast during the northeast monsoon and off the west coast during the southwest monsoon. The strongest currents are recorded off the southern coast. The tidal pattern in Sri Lankan waters is predominantly semidiurnal and microtidal, with the highest amplitudes around the Colombo area and lowest around the Jaffna and Trincomalee coastline.

2. Coastal Habitats

12. The natural ecosystems within the coastal zone are diverse and include lagoons and estuaries, coral reefs, mangrove swamps, seagrass beds, other wetlands, and dune systems. The country's principal coral reef systems are comprised of fringing reefs close to shore. They are scattered around the entire coast, with many clustered in the south (Akurala to Tangalle). Several offshore reefs are found on the continental shelf off the northwestern coast (Arippu Reef, Bar Reef, and Vankalai Reefs). Due to destructive fishing practices and human induced activities such as siltation and pollution, only two of eight coral reef areas studied (Kandakuliya and Talawila) showed live coral coverage of greater than 50 percent. Two nearshore reefs, Polhena and Weligama, showed a significant proportion (over 50 percent and over 80 percent, respectively) of dead corals, while at Hikkaduwa and Akurala, about 25 percent of the corals were dead. Most of this damage is believed to have occurred over the last 10-15 year period. The percentage of dead corals at Hikkaduwa is now much higher (70 percent mortality has been estimated for branching Acropora corals) as a result of “bleaching” in April 1998 caused by high water temperatures associated with El Niño.

13. Mangroves are closely associated with estuaries and lagoon areas. The most extensive mangrove areas are in Puttalam district, with over 2,000 hectares (ha). Batticaloa and Trincomalee districts also have extensive mangroves, each with over 1,000 ha. Cumulative damage to mangroves in Sri Lanka has resulted from overutilization of the resource and the transformation of large areas for other uses. Over 600 ha between Chilaw and Puttalam, much of it mangrove forest, have been developed for aquaculture. The conversion process destroys mangroves by clear-cutting and by alteration of water flow patterns. About 63 percent of the previously mangroves in Puttalam Lagoon have been lost in the 12-year period from 1981-1992. Conversion for coconut and paddy production also causes irreversible change. In addition, mangrove areas may be reclaimed for housing and urban expansion.

14. Seagrass beds constitute the most extensive coastal ecosystem in Sri Lanka. They occur along the open coast as well as within estuaries and lagoons. A very large bed covers much of the area from Dutch Bay to Jaffna Lagoon. At Mannar, this same bed extends to the northwest toward Rameswaram Island, India. Smaller seagrass beds are found on the leeward side of coral reefs along the southwestern coast. No reliable measures have been made of the areal extent of seagrass beds in the country. Though not well-studied, several activities are known to destroy seagrass beds, including digging for polychaetes, sewage disposal, and use of destructive fishing gear (such as bottom trawls and drag nets). Less extensive damage is caused by beach seining and dragging of propellers. Excessive siltation can also damage this critical habitat.

15. Sri Lanka is estimated to have over 23,800 ha of salt marsh lands. Salt marshes in the north of the country are found mostly on tidal flats, while in the south, they occur mainly in low areas on the sheltered sides of sand dunes. Salt marsh vegetation is often interspersed with mangrove scrub. Salt marshes are destroyed by conversion, including for salt farming (e.g., at Hambantota and Palavi); shrimp aquaculture (various lagoons); and reclamation (e.g., Muthurajawela marsh). The decline in salt marsh land due to these activities may be dramatic. In Puttalam Lagoon, for example, 50 percent of the marshland was lost in a 10-year period.

16. The lagoons and estuaries of Sri Lanka are one of the country’s most prominent natural features and cover some 160,000 ha. The lagoons are complexes of other wetland systems and often contain marshes, mangrove areas, seagrass beds, and mud flats. The major threats to lagoons and estuaries are pollution and siltation. These two problems are exacerbated by water diversions that reduce natural flows. Such flow reduction accelerates the accumulation of sediments within the basin and blockage of the channels that connect the lagoons to the sea and allow for natural water exchange.

3. Fisheries Resources and Production

17. Sri Lanka's coastal fisheries resources comprise the exploitable pelagic and demersal marine species of the entire water column on the continental shelf. About 70 percent of the exploitable coastal resources consist of small pelagics such as sardines, herrings, anchovies, mackerels, and flying fish. The most dominant among the sardines and herrings are Amblygaster sirm, Sardinella gibbosa, and S. albella. Important anchovies are represented by Stolephorus indicus and S. heterolobus. Among the mackerels, Indian mackerel (Rastrelliger kanagurta) is the most predominant catch. Several species of flying fish are found in the coastal waters. Oceanic large pelagics such as tuna, marlin, shark, sailfish, and swordfish are also caught in the coastal waters of the country. The common oceanic pelagics are yellowfin tuna (Thunnus albacares), skipjack (Katsowonus pelamis), kawa-kawa (Euthynnus affinis), frigate tuna (Auxis spp.), and see fish (Scomberomorus commersoni). Other species caught are demersals such as emperors, snappers, groupers, sweetlips, sciaenids, carangids, breams, goatfishes, and leiognathids and invertebrates such as squids, prawns, crabs, and lobsters. The estimated annual production from coastal waters is 149,300 tons (t). In the oceanic waters (the area beyond the coastal waters) the exploitable resources include tunas, sharks, marlins, sailfishes, and Spanish mackerels. Economically important tuna species include yellowfin tuna, skipjack, and kawa-kawa. Current production is about 57,000 t while estimated production from the 200 nautical mile Exclusive Economic Zone is about 100,000 t. At present, the Sri Lankan fishing fleet consists of around 17,627 fishing craft, of which about 52 percent, are motorized.

18. Sri Lanka’s total annual fish production in 1996 was 228,550 t, around 65 percent of which was accounted by coastal fisheries, 25 percent by offshore or deep sea fisheries, and only 10 percent by inland fisheries. This total annual production was more than double the 1972 figure (101,712 t). Coastal fisheries production increased 0.9 percent per annum from 1978- 1986, and then declined to an annual growth rate of 0.23 percent from 1987-1997. Production declined by about 25 percent from 1983-1984 as a result of the civil disturbance in the north and east coasts. Coastal fisheries production peaked in 1994 and has been fluctuating between 150,000-157,000 t since then. Offshore production increased by 4.4 percent per year from 1987-1997 with the increase in the number of multiday craft. 4. Human and Economic Development

19. The CRMP is to cover a total area of 10,860 km2 of coastal land, which is approximately 17 percent of Sri Lanka’s total land area. The estimated length of the coastline in the CRMP area is 630 km. In 1994, the six districts covered by the CRMP had a population of 6.74 million, equivalent to about 26.4 percent of the total population of the country. The land use in the coastal belt (within the high mean water level to 300 meters [m] inland) from Dutch Bay to Hambantota (approximately 410 km), based on a coastal survey done in 1994 by the Department of Geography, University of Peradeniya, is as follows: paddy fields, 91 ha; built-up areas, 1,682 ha; dune vegetation, 133 ha; shrubs, 414 ha; water bodies, 1,178 ha; coconut groves, 1,864 ha; home gardens, 4,874 ha; sand dunes/bars, 753 ha; seashore vegetation, 308 ha; fishing camps (temporary settlements), 99 ha; forests, 104 ha; wetlands, 431 ha; mangroves, 198 ha; slash and burn (chena) cultivation, 33 ha; Palmyrah, 21 ha; public areas (playgrounds, cemeteries, resorts, etc.), 162 ha; and aquaculture, 24 ha.

20. The major economic activities in the CRMP area are agriculture-related occupations and fisheries. Tourism is an important revenue earner on certain coastal stretches, and a wide range of tourist accommodations, from five-star hotels to small guest houses, are located in the CRMP area to cater to all categories of foreign and local visitors. There are also numerous industries, commercial and trade establishments, banks, health and educational facilities, places of worship (i.e., Buddhist temples, Moslem mosques, and Christian churches), and historical and cultural sites. Several fishing harbors, anchorages, and landing sites are located in the area. Infrastructure facilities include roads, railway lines, piped water supply, and electricity lines. Community services, such as garbage collection, are available but, in many cases, are not adequate.

B. Site-Specific Conditions

21. Specific CRMP interventions and the locations where these will be implemented, are as follows: (i) coastline stabilization component: Beruwela-Bentota, Colombo North-Dickowita, Hikkaduwa, Kalu Ganga-Maggona Headland, Maha Oya-Lansigama, Moratuwa-Koralawella, and Wadduwa; (ii) coastal environment and resource management (CERM), fisheries management, and livelihood development: Bar Reef-Kalpitiya, Hikkaduwa, Kalametiya Lagoon, Lunawa Lagoon, Madu Ganga Estuary, Mawella Lagoon, Negombo Lagoon/Muthurajawela Marsh, Tangalle-Hambantota, Unawatuna Bay; and (iii) fishery harbors and anchorages: Ambalangoda, Chilaw, Hambantota, and Kalametiya.

1. Sites for Coastline Stabilization

22. Of the seven sites for the coastline stabilization component, the coastal stretches, Dickowita (Colombo North), Maha Oya-Lansigama, and Payagala (Kalutara river mouth to Maggona Headland), together comprising a 32-km length, are the worst affected coastal reaches. The Beruwela-Bentota, Hikkaduwa, and Wadduwa sites urgently need coastal erosion management and physical intervention. The coastal stretch at Wadduwa is fairly stable but has had erosion problems in the last 2-3 monsoon periods; it could be considered a pilot scheme for a preventive coastal erosion management strategy. Beruwela-Bentota is a very important coastal stretch because it has the highest concentration of high-value tourist hotels and resorts. Soft interventions seem to be required to avoid resource degradation in this vulnerable area. Hikkaduwa area has high resource diversity (coral reefs, seagrass, fisheries, urban area, tourism) and is highly vulnerable as indicated by records of shoreline variation during the last century. 23. The coastal stretch Maha Oya-Lansigama is part of the coastline between Chilaw and Negombo and is considered the most critical. The erosion rates in this stretch based on a recent survey of the area: (i) between Hotel Dolphin and Hotel Ranweli, between December 1988 and December 1998, up to 90 m (9 m/yr); (ii) at Gin Oya sand barrier, between December 1991 and December 1999: 80 m (11.4 m/yr); and (iii) at Wellamankara Church, between April 1994 and August 1998: up to 55 m (12 m/yr). The erosion rates in the Colombo North-Dickowita area have been estimated at: (i) 20 percent of the shoreline between Kelani and Mutwal River eroding at 0.5 m/yr; and (ii) 70 percent of the shoreline between Paliyawatta and Uswatakeiyawa, eroding at 2.5 m/yr. The stretch from Paliyawatta and Uswatakeiyawa is the area most affected by continuing heavy erosion: an estimated 70 percent of the coastline along the Kalu Ganga-Maggona Headland stretch erodes at a rate of 2 m/yr. This revised estimate is lower than the 1986 figure of 100 percent of the coastline eroding at a rate of 1.1 m/yr. The reduction takes into consideration the fact that parts of the stretch are protected by a groin- revetment scheme and another part by revetments.

2. CERM Sites

24. The sites where CERM activities will be implemented are (i) Bar Reef, (ii) Hikkaduwa, (iii) Kalametiya Lagoon, (iv) Lunawa Lagoon, (v) Madu Ganga Estuary, (vi) Mawella Lagoon, (vii) Negombo Lagoon-Muthurajawela Marsh, (viii) Tangalle-Hambantota, and (ix) Unawatuna Bay.

25. Bar Reef, one of Sri Lanka's few remaining areas of relatively pristine coral reef, is several kilometers off the Kalpitiya Peninsula on the northwest coast. The reef and surrounding waters support a high diversity of marine life. A 306.7 km2 area has been designated as a marine sanctuary. However, no management plan exists for the sanctuary, and no concrete measures have been put in place to protect the area.

26. Negombo Lagoon occupies some 3,164 ha and is surrounded by an additional 6,232 ha of coastal wetlands. The water body supports a rich fishery within the lagoon and in the prawn fishing grounds just off the coast. There has been a 30-year trend of degradation in the lagoon due to causes including siltation, salinity decline, reclamation, conflicts among users, disposal of wastes from fishing, industrial estates, and Negombo town. At the south of the lagoon is Muthurajawela marsh, an important habitat for fish, birds, and other wildlife. Mangrove and marshland systems in this part of the lagoon remain relatively undisturbed. The Muthurajawela Marsh Visitor Center has been set up within the area under the Central Environmental Authority's Integrated Resource Management Project for Wetlands.

27. Lunawa Lagoon is a small lagoon surrounded by the Ratmalana-Moratuwa industrial- residential area, which is the site of many heavily polluting industries, including textile manufacturers and dyers, metal finishers, food processors, and asbestos fabricators. The waste generated by these industries significantly affects the lagoon, and domestic wastewater from residents in the area is discharged into open ditches draining into the lagoon. These problems are amplified by a sand bar that blocks the connection of the lagoon to the sea.

28. Madu Ganga estuary is a large lagoon and surrounding wetland. Within the lagoon are 64 small islands, one of which is the site of the Kotduwa, a Buddhist temple. The largest island is permanently inhabited by around 125 families and is linked to the mainland by a new permanent footbridge. The lagoon is surrounded by dense mangrove stands that serve as a habitat for various wildlife, and the waters of the lagoon support a rich prawn fishery. The lagoon ecosystem remains quite pristine.

29. Unawatuna Bay has scenic views, attractive beaches, and coral reefs. The reefs of the area, relied upon for traditional fisheries activities, are being damaged and overfished by ornamental fish collectors. Dynamite may be occurring in fishing. Koggala Lagoon is a shallow, 727-ha waterbody that has 14 small islands within it, one of which is occupied by a Buddhist temple. The lagoon has become degraded through a variety of human activities in the area. Mangrove cutting has destroyed habitat, while industrial pollution is affecting water quality in the lagoon.

30. Kalametiya Lagoon is a fairly large lagoon along the country's southern coast. Kalametiya has been designated as a sanctuary area under the Wildlife Act. The lagoon faces considerable threats due to ongoing or planned activities. Extensive areas of the wetlands are being disrupted by shell mining activities. Illegal hunting also occurs in the sanctuary and development is encroaching upon natural areas.

31. Mawella Lagoon is a small, 100-ha lagoon somewhat interior to the coastline and connected to the sea by a long canal. The lagoon is separated from the sea by a sand bar that is only naturally breached every 6-7 years. There have been problems from siltation and reduced salinity levels due to inflows of irrigation water and blockage of the ocean connection have resulted in reductions in natural shrimp stocks, and the lagoon now supports only minimal fishing activity.

32. Hikkaduwa is a picturesque fishing village approximately 20 km north of Galle. The principal resources at Hikkaduwa are its coral reefs, sand beaches, and shallow reef lagoon. Hikkaduwa was declared as the country's first marine sanctuary in 1979. However, the development of tourism has caused considerable ecological and social impacts in the area.

33. The Hambantota area is comprised of a variety of important ecological and natural features, including extensive sand dunes that have been planted to ironwood (Casuarina) trees. Though still relatively unaffected by development, the greatest threat to the area's resources is posed by the development plans for the area, which include port development, a refinery, a new city, and highway construction.

3. Sites for Fishery Harbors and Anchorages

34. Fishery harbors will be established at Chilaw and Hambantota and anchorages will be constructed at Ambalangoda and Kalametiya.

a. Chilaw

35. The city of Chilaw is approximately half way between Colombo and Puttalam. The city stretches on both sides of the entrance channel to Chilaw Lagoon. The entrance channel and the lagoon are separated from the sea by a long spit. The large Deduru Oya River discharges just north of the lagoon’s mouth. Accumulations of silt and sand have repeatedly and frequently blocked the entrance to the lagoon at the north end, making it impossible for larger boats to enter and exit the lagoon freely at certain times. The coastline in Chilaw is fronted by beach rock formation, and the sand spit bordering the outlet channel (often called the Chilaw Lagoon) of the Chilaw Lake is about 150 m at its narrowest point. The spit is densely populated at its northern end and widens gradually south of the lagoon mouth. At Ambakandawila, which is about 6 km south of the lagoon mouth, the width of the spit is approximately 1 km. Chilaw Lagoon is the outlet channel of Chilaw lake. The channel in the proposed harbor area is shallow, about 60 m wide, and appears to have a muddy-silty substrate that may be anaerobic but does not appear to support any notable benthic fauna. Peripheral areas of Chilaw Lake, particularly its southern end, have abundant mangrove vegetation. However, this ecologically rich area occurs at least 3-6 km upstream of the CRMP site. b. Hambantota

36. Hambantota Bay is a long-established anchorage and although relatively unprotected, apparently provides some protection from the worst southwest monsoon storms. The Hambantota beach landing point is midway between Kirinda and Tangalle harbors, approximately 30 km from the two harbors. The old jetty structures at the western end of the bay are not usable and a brick retaining wall along the elevated road behind the beach has partly collapsed. The fishers have to pass the zone of breaking waves to get their boats to the beach. The beach is polluted with garbage and discharges from domestic water drains, and a small auction shed has fallen apart due to wave erosion of its foundation. There is, however, an operational ice plant managed by Ceylon Fisheries Harbours Corporation (CFHC) on the other side of each road. The western part of the bay is mostly used by the fishers, as there are two jetties for fish landing. Hambantota harbor will be developed within the open bay of Hambantota. The bay has a sandy bottom that slopes gradually to depths of 4-5 m. No significant biota are reported from within the harbor area or nearshore parts of the bay.

c. Ambalangoda

37. Ambalangoda, midway between Beruwela and Hikkaduwa fishery harbors, is a traditional fish landing area. Because of submerged rocks at the current landing point, a site immediately to the north of the rest house adjoining the marketplace has been selected, in consultation with CFHC, as an alternative site for CRMP interventions. Direct access to the site is through the market area, which is highly congested. Other approaches to the location are available through the byroads connecting the main road and the beach road. The proposed Ambalangoda anchorage site is just north of the Ambalangoda rest house. A small rocky headland forms the southern boundary of the site. The proposed anchorage will extend some 300 m northward along a mixed coral and quartz sand beach. During the monsoon season, the beach sand in the area is washed away, but returns again in the nonmonsoon season. Fishing boats moor in the waters offshore from the bay during the calm season. However, during the monsoon season, boats must move to Galle for safe anchorage. Behind the beach, land use is mostly for residential purposes and small resorts. The sea bottom in the planned anchorage basin appears to be a thin layer of sand underlain by rock.

d. Kalametiya

38. Located 210 km from Colombo, between Hambantota and Tangalle, Kalametiya is a traditional beach landing point. Access to the site is through a 4-km long narrow byroad (from the main Matara-Hambantota Road). The landing site is exposed to the southwest monsoonal and northeast monsoonal waves, with the former having a greater impact on the site. The main surface waterbodies near the proposed CRMP site are the Kalametiya and Lunawa lagoons; both form part of the Kalametiya sanctuary and are interconnected through a manmade channel of about 2 km length. Both lagoons are shallow (the average depth is under 1 m) and collectively have a water surface area of about 800 ha when full. The proposed location of the fishery anchorage is not an ecologically sensitive area and has been a traditional fish landing site. A nearshore reef is reported within the anchorage area but this is a dead reef.

IV. ALTERNATIVES

39. "With Project" and "without Project" scenarios were investigated during the feasibility study, primarily regarding the coastal erosion situation in the country's southwest, west, and south coasts. Based on estimated erosion rates and coastal development trends in the critical areas selected for coverage under the CRMP, the following scenario could result if the CRMP is not implemented:

(i) The worst affected stretch will shift northwards by 500-1,000 m annually, the shoreline will retreat by 20-50 m, and all houses in this stretch will be destroyed (loss of land will be about 55,000 square meters per year). (ii) Erosion management will follow the erosion, and revetments will be built (500– 1,000 m/yr at a cost of SLRs20,000/m). (iii) The shore protection structures will need frequent maintenance (a reasonable estimate is 5 percent of investment cost per year). (iv) Over time, a long stretch of coastline in the CRMP sites will be increasingly covered by revetments, the erosion problem will extend to long stretches of coast, land and property will be lost, and the country will suffer significant losses in foreign exchange revenues from the tourism industry.

However, with the CRMP, 52 km of coastline will be saved and 10.23 ha/yr of land area that will be saved from erosion, or about 204.6 ha over the life of the CRMP.

40. Two alternative proposals for the layout of the Chilaw harbor were considered during a detailed coastal engineering study done under the Bank-funded Fisheries Sector Project loan.2 The study aimed at developing a permanent solution to the navigation problems fishing boats experience due to the siltation of the entrance channel, especially during the southwest monsoon. The first alternative was to cut a channel through the reef at a suitable location and divert the lagoon outlet through the channel. The other alternative suggests the preservation of the present situation by constructing two short rigid walls into the sea. The second alternative of stabilizing the existing entrance using short groins or training walls will have a minimal impact on the wave and current pattern in the bay. Thus, the morphological impacts of this solution will also be minimal. On the other hand, the viability of the solution will depend on the ability to allow wave action to continue to move sand along the beach during the southwest monsoon. The solution favored under the feasibility study is to keep the entrance channel clear, thereby producing a minimal disruption of environmental processes.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

41. The proposed activities under the coastline stabilization component, the fishery harbors and anchorages subcomponent, and the CERM component were examined in terms of potential environmental stress generated and impacts on human values and environmental resources. Both positive and negative impacts are described. Where negative impacts are found to be significant, mitigation measures are proposed.

A. Positive Impacts

1. Coastline Stabilization Schemes

42. Under the component, erosion in 52 km of the coastline will be directly stabilized. The total land area that will be saved from erosion is estimated at 10.23 ha/yr, or about 204.6 ha during the CRMP. The value of houses that will be protected from erosion is about SLRs86.87 million/yr ($1.27 million/yr) or about SLRs1.74 billion ($25.40 million) over 20 years. In addition, coastline stabilization will have immense benefits on the tourism industry, which is Sri Lanka’s second largest foreign currency earner, next to the tea industry. As almost 80 percent of the

2 Loan No. 1201-SRI(SF): Fisheries Sector Project, for $26 million, approved on 1 December 1992. country's tourist facilities are in the five districts along the southwest and south coasts, where the CRMP will be implemented, about SLRs347.67 million ($5.1 million) will be saved annually or SLRs6.95 billion ($102 million) during the CRMP.

43. The proposed stabilization schemes will also result in a number of beneficial socioeconomic impacts, including (i) reduced stress among the communities living along the coastlines of Beruwela, Maha Oya-Lansigama, and Payagala; (ii) reduced vulnerability of roads and railway lines to sea erosion in areas such as Hikkaduwa and Payagala; (iii) increased income generation potential for the tourism industry and the local fishers as a result of the creation of new beaches; and (iv) new opportunities to improve quality of life for the local communities by enabling more leisure activities.

2. Fisheries Management Activities

44. The adoption of fisheries management measures will help rejuvenate fish stock and rehabilitate nearshore habitats, leading to increased fish availability and, consequently, increased fish catches and higher incomes of fisherfolk. The implementation of regulatory and control measures, such as the strict enforcement of a licensing system for small-scale fisheries and the establishment and operation of a community-based monitoring, control, and surveillance system, will result, over time, in improved fish catches and in economic and social benefits to all in the coastal community and beyond. Fish losses through spoilage will be minimized through the introduction of improvements to the design of multiday fishing boats, provision of insulated fish boxes in fiberglass reinforced plastic boats, promotion of improved post-harvest handling and processing, and a consumer-focused information, education, and communication program. The fishery harbors to be constructed under the CRMP, as well as those established under the ongoing Fisheries Sector Project, will be provided with basic facilities to enable proper fish handling after unloading. Auction sheds will be provided with adequate fresh water and with toilets and wash areas for fish, boats, and people using the harbors. Waste disposal and wastewater treatment facilities will be installed in the harbors and anchorages. Training will be extended to interested parties on post-harvest handling, quality assurance, hygiene and sanitation, development of value-added products, and good marketing practices.

45. The fishery harbors and anchorages to be set up in Ambalangoda, Chilaw, Hambantota, and Kalametiya will (i) create a safe haven for the local fleet on a year-round basis, thus minimizing the loss of boats and in operational times during the monsoon season; (ii) increase incomes to fishers as a result of the availability of hygienic fish handling conditions that will facilitate the use of fresh water for cleaning, ice for preservation of catch, and insulated boxes to maintain fish quality during transport; (iii) improve environmental and public health conditions at and near the harbors and anchorages; (iv) ensure the sustainability of fish resource utilization by providing anchoring space and landing facilities for larger boats capable of exploiting the deepsea resources, thereby encouraging further investment in such boats; (v) provide appropriate fueling facilities to minimize the risk of environmental hazards through spillage on the beach; (vi) create basic infrastructure and land areas to be leased to the private sector for establishment of ice plants, cold stores, processing plants, shipyards, workshops, fueling facilities, and sales outlets; and (vii) improve public sector capacity to provide effective support to the traditional and commercial fishing industry.

46. The physical infrastructure improvements will therefore initially benefit boat owners and fish merchants, but will eventually trickle down for the betterment of all fishery workers. Consumers are expected to benefit from greatly reduced chances of food poisoning and higher protein value of fish products. In addition, the installation of adequate water supply and sanitary facilities will result in improved handling, improved product quality, and reduced wastage, with obvious benefits in increased economic returns, improved public health, and reduced pressure on coastal fisheries resources. Increases in fish supply are envisioned due to a reduction in post-harvest losses by about 10 percent annually, brought about by the investments in fish quality improvement. Fishport improvements would also benefit the local economy and enable small fishers to exploit the offshore areas, thereby stabilizing the coastal fish catch. As no opposition to the planned interventions was registered at any of the local consultations held at the sites during the study, no adverse impacts are anticipated at the Project areas.

3. CERM Activities

47. Coastal resource management interventions (such as special area management planning; management of the various coastal habitats [i.e., coral reefs, lagoons, mangroves, and wetlands]; biodiversity conservation; sustainable ecotourism; and measures to improve water circulation in lagoons) are expected to avert the degradation of coastal resources, preserve biodiversity, enable continued sustainable resource utilization for human consumption (e.g., fish and fish products) or recreation, yield ecotourism and public health benefits, and, on a global level, increase carbon storage. The rehabilitation and conservation of coastal habitats will also lead to increased fish availability and consequently, increased fish catches and higher incomes to fisherfolk. Resource management and environmental protection are, in the long term, expected to provide economic and social benefits to all in the coastal community and beyond.

48. Coral reef management will be one of the key coastal resource management interventions in Bar Reef and Unawatuna Bay, and will include repair and maintenance activities, research on the feasibility of deploying small artificial reefs to aggregate juvenile aquarium fishes so that ornamental fish collectors can obtain fish without damaging natural reefs, coral transplantation, and community-based coral reef monitoring and management. Lagoon management activities will be carried out at the special area management lagoon sites (Kalametiya, Lunawa, Madu Ganga, and Negombo) to control pollution and monitor industrial discharges. Lagoon boundaries will be delineated to curb illegal filling and encroachment activities in lagoon areas. Mangrove and wetland nurseries will be established at the lagoon sites and at the coral mining pits at Eluwil, and plants will be propagated for reforestation and habitat enhancement as well as for commercial purposes. Other biodiversity conservation activities proposed under the CRMP are (i) protection of Rummassala Hillock, a unique vegetation community with high biodiversity in Unawatuna; (ii) protection and management of wildlife areas in the lagoon sites at Kalametiya, Madu Ganga, and Negombo; (iii) protection of turtle nesting beaches at Rekawa and nearby Ussangoda, and possible rehabilitation of formerly productive turtle nesting beach sites in the vicinity of Bar Reef; and (iv) monitoring and protection of endangered marine mammals (dolphins and dugongs) in the Bar Reef area, where fishers capture dolphins and sell their meat.

49. Structural solutions are proposed to improve water flow and water quality in the lagoons at Kalametiya, Lunawa, Madu Ganga, Mawella, and Negombo. The engineering options may include lagoon or channel dredging (in Lunawa, Mawella and Negombo); breaching of barrier beaches (in Lunawa, Madu Ganga, and Mawella); and diversion of irrigation water from the lagoon (in Kalametiya). Social programs to be implemented in parallel with resource management measures will include (i) livelihood enhancement among coastal communities (e.g., sustainable ecotourism in Kalametiya, Madu Ganga, Negombo, and Unawatuna); (ii) provision of sanitation infrastructure in the form of public lavatories in the lagoon communities of Lunawa and Negombo; and (iii) solid waste management and pollution prevention through recycling of organic waste, waste oil, glass, metal, and plastics. The provision of supplemental income opportunities will increase household incomes and encourage further investments in production activities, thereby generating more employment opportunities for immediate household members and hired labor who will be directly involved in the production-marketing chain of inputs and outputs.

4. Institutional Strengthening Activities

50. Institutional strengthening activities will address identified institutional weaknesses, by equipping concerned MFARD agencies and community organizations in resource management. The establishment of the field project implementation units (FPIUs) and of interagency cooperative mechanisms is expected to enhance the capability of local governments to tackle complex problems of resource management through a standardized implementation mechanism and strategy, the principles of which can be replicated in other resource management concerns. The institutional capability of fishers’ associations and cooperatives will be strengthened through short-term training and hands-on experience in a wide variety of areas ranging from special area management planning and implementation to financial planning and monitoring and evaluation.

51. The organization of fishers into associations/cooperatives will empower them by ensuring their representation and participation in sustainable resource utilization and transform them into responsible resource managers and users. Their organization into cooperatives will also improve their access to credit for alternative livelihood or supplemental income-generating activities, enable them to increase their incomes, and equip them with necessary skills in project management and entrepreneurship in nonfishing occupations, thus widening their financial options and drawing them away from capture fisheries.

B. Potential Adverse Impacts and Mitigation Measures

52. A number of negative impacts, both long and short term, could be produced by the construction and implementation of the coastal protection works, the fishery harbors/anchorages, and the physical interventions proposed under the CERM component. These activities may produce impacts on the physical environment (water, land, and air); the ecological resources (water quality and habitats); and the human and socioeconomic environment. Where impacts are anticipated, mitigation measures are proposed to minimize their level of significance. The proposed mitigation measures for coastline stabilization and harbors/anchorages are summarized in Appendixes 2 and 3.

1. Impacts on the Physical Environment

53. Impacts on the physical environment could arise as a result of the construction of the various physical facilities as well as their subsequent operation. More specifically, CRMP interventions could produce impacts (i) due to construction (e.g., quarrying and blasting, transport of materials, disposal of construction waste); (ii) due to offshore sand extraction and maintenance of onshore sand levels; (iii) on adjacent coastal stretches; and (iv) on coastal drainage.

a. Impacts due to Construction

54. All coastline stabilization schemes and the planned fishery harbors and anchorages have structural elements, such as groins or offshore breakwaters or combinations of groins and breakwaters, which will need rock armor and, therefore, will involve quarrying and blasting. Typical impacts of quarry operations are noise, vibration, dust, hazards to quarry workers, and damage to property in the neighborhood. During the construction stage, the required rock will normally be obtained through a subcontractor who operates a quarry. Consequently, to ensure minimum environmental impact due to quarry operations and blasting to meet CRMP needs, the CRMP management office and Coast Conservation Department (CCD) will (i) include in their prequalification criteria that each contractor must have an environmental protection license, and (ii) have to obtain the required clearance from the Central Environmental Authority before being awarded the contract for the services. Furthermore, the contracts will specify the health, safety, and environmental standards that the contractors are to meet in performing the quarrying and coastline stabilization works.

55. One likely significant short-term impact of the construction of coastal protection works and harbors/anchorages is increased road traffic due to slow-moving trucks transporting construction material, particularly rock armor for the breakwaters. Impacts will be minimized by (i) scheduling transport during off-hours, (ii) maintaining stockpiles of materials close to the sites, and (iii) imposing one-way routing of construction traffic. Moreover, quarrying, blasting, transport of rock armor, and coastal protection works, in general, have been regularly carried out in coastal areas in the country for several decades with no significant adverse impacts. A particular problem in Hikkaduwa is the limited beach access available from the main road into the construction areas south of Coral Garden headland. Permits from the local authority will be obtained to secure passage for construction traffic to the beaches. The impacts, however, will not be significant as only two offshore breakwaters are proposed in this area whereas the major stabilization will involve sand nourishment using offshore sand.

b. Impacts due to Offshore Sand Extraction

56. The CRMP will require around 2.4 million cubic meters (m3) of sand for beach nourishment, plus 10 percent annually for maintenance nourishment. This sand is expected to be obtained from offshore sources. Typical environmental impacts of mining offshore sand are the deposit of nearshore sediment, loss of habitat areas (due to extraction and filling), greater penetration of waves through deepened offshore areas after mining, and progressive loss of sand from the areas near the new trenches. These and other site-specific potential environmental impacts will be mitigated by ensuring that such extractions are done from deepsea sand deposits that are identified through appropriate studies to have no relationship to coastal sedimentation. Explorations for sand deposits will therefore be carried out in deepsea areas at least beyond 8 km offshore. The dredging will be limited to 2 m below the existing seabed level at depths equal to or greater than 15 m below mean sea level so as not to create hydraulic or geotechnical problems. The dredging is to be carried out in uniform linear channels along the seabed within the rectangular boundaries of the borrow region rather than by creating scattered deep holes in the seabed. Experience from previous sand dredging activities (e.g., Development of Muthurajawela Marsh and Kerawalapitiya Reclamation Project) indicates that if the dredging operations are carried out according to the foregoing guidelines, no significant adverse impacts are likely.

c. Maintaining Sand Nourishment Schemes

57. All sand nourishment schemes need regular replenishment to maintain their effectiveness and justify the capital investment. In general, an average annual replenishment of 10 percent of the capital nourishment could be anticipated, beginning a couple of years after the initial nourishment, but actual replenishment is expected in specific years. The requirements will basically be met from offshore sources from which the original extractions were made. Hence, it is important to cover the maintenance requirements in the detailed studies for sand extraction. However, if the locations are different, proper environmental examination will be carried out to ensure that any potential adverse impact is either mitigated or avoided.

d. Impacts due to Dredging 58. The initial dredging requirements for Chilaw and Hambantota fishery harbors are 18,400 m3 and 5,100 m3, respectively, and the maintenance dredging requirement is approximately 10 percent of the capital dredging, to be carried out once every five years. No dredging is required for Ambalangoda and Kalametiya. Increased turbidity in the surrounding waters, brought about by dredging of the nearshore seabed in Chilaw and Hambantota, is the most significant impact associated with the construction phase of the CRMP. Adverse effects of increased turbidity on aquatic life include the following: (i) turbid water affects fish by making it difficult for them to feed and find shelter, and suspended particles could clog gills, resulting in asphyxiation; (ii) the settling of suspended particulates could blanket benthic plants and invertebrates, killing them; and (iii) increased turbidity restricts light penetration, interferes with the energy input to the aquatic ecosystem, and may thus reduce biomass, diversity, and species distribution in the affected area.

59. Dredged soils will typically contain a combination of inert particles such as sand and gravel, suspended solids from clay and silt material, and possibly a high concentration of organic detritus (which uses up dissolved oxygen) dredged from the silted rivers. The dredged material could contain significant levels of pollutants from various sources, including fishery activities over the years. Hence, disposal locations (on land and in offshore areas) will be selected during the detailed design studies so that the impact on the marine environment is minimal. Also, to minimize impacts, dredged material will be disposed of at least 3.5 km offshore from the Hambantota site. This manner of dredgeate disposal may be difficult in Chilaw, however, as before going offshore, the vessel will have to travel the full 2 km length of the lagoon, and then negotiate the lagoon mouth. Hence, the option of carrying out land-based disposal will be evaluated for Chilaw during the detailed design stage. Part of the dredged material might be useful for reclamation of land for shore facilities. Before such a measure is taken, bottom samples will be tested for their suitability for land reclamation, and geotechnical surveys to be conducted during the detailed design of the civil works will determine the actual composition of the dredgeate.

60. During dredging activities, plumes of suspended sediments will increase the turbidity of the water at the site. However, this impact will be of short duration, i.e., during dredging and construction of the breakwater, and wave action in the bay will rapidly disperse the sediment plume. To minimize the impact, dredging will be coordinated with the construction of the breakwater so that the latter can act as a protective embankment to contain the turbidity. Adequate riprap embankment (to serve as a sediment trap) will be provided around the reclamation sites prior to filling to contain the dredgeate and will prevent its escape to the surrounding water.

61. Previous fishery harbor projects involving dredging (e.g., Hikkaduwa and Kudawella harbors) showed that dredging could produce both negative and positive impacts. The major negative impacts of dredging a harbor basin include increase in turbidity during the dredging process, temporary reduction of oxygen content, disruption and removal of bottom sediment, change in characteristics of the benthic community, and burial of organisms at disposal sites. Immediate consequences of dredging are the destruction of the benthic community and the removal of nursery grounds for fish and marine species. However, since the selected harbor and anchorage sites are ecologically depauperate, dredging of the harbor basin is not likely to result in significant impacts on the biota and the ecology of the area. Moreover, as dredging will take place only during the construction phase and is therefore a temporary activity, benthic communities are expected to recolonize the bottom soon after completion of the dredging works. In addition, dredging could improve water flow and circulation, increase water volume resulting in better environmental conditions through flushing and dilution of pollutants, and increase the availability of food and marine species. e. Impacts on Adjacent Coastal Stretches

62. In general, the coastal protection schemes are not expected to have significant impacts on the adjacent coastline and, at most, will have minimal effects on the overall sediment transport pattern. Instead, the structures and the beach nourishment schemes are expected to stabilize the coastal stretches and adjacent areas. In the Maha Oya-Lansigama area, the planned coastal protection scheme will have insignificant impacts on the adjacent coastline since only a very small amount of material (less than 20,000 m3) will be taken out of the littoral drift, which has an estimated magnitude of 200,000 m3/yr. Instead, the stabilization of this stretch is anticipated to have a positive impact on the entire coastline up to Chilaw and contribute to the stabilization of the estuary as well. Stabilization of the Colombo North coastal stretch is expected to produce only a marginal impact on the overall sediment transport pattern since the erosion volume is much smaller than the total sediment transport capacity.

63. In Chilaw, where the CRMP will be sited inside the lagoon, the CRMP will not cause any significant impact on the adjacent coastline, especially if the lagoon entrance is kept clear by using a jet pump. This is because the sediment from the mouth area would not be completely lost from the sediment budget of the area. No significant adverse impacts are likely on shoreline stability within Hambantota Bay as a result of the proposed harbor, although this assumption will have to be validated with appropriate mathematical calculations during the detailed design.

64. The coastline adjacent to the proposed location of the Ambalangoda anchorage is relatively stable with some seasonal fluctuations. However, the breakwaters of the proposed anchorage can interfere with the sediment transport along the shore, and it may take a couple of years for sediment to fully bypass these structures and reestablish a state of equilibrium. Nonetheless, the coastal stability of the adjacent stretches will be analyzed in detail before the proposed anchorage breakwaters are constructed. The coastline near the proposed Kalametiya anchorage is stable with some seasonal fluctuations. One end of the anchorage is protected naturally by a rocky headland and the solitary breakwater is unlikely to cause a significant adverse impact on the coastline stability of the neighborhood.

f. Impacts on Coastal Drainage

65. Closure of outlets cause stagnant water pools that accumulate waste matter, thus posing an environmental pollution hazard and coastal flooding during monsoonal rains. At the same time, sand barriers at the river mouth defend against enhanced wave attack during the monsoons and thereby resist inundation of low-lying hinterland areas. Therefore, to mitigate the impacts of coastal stabilization on coastal drainage, the design of the schemes will incorporate measures such as short sea outfalls, clear passage for small streams through the stabilized beaches, or alternative drainage systems/diversions. In addition, the behavior of the sand bar will be monitored after completion of the stabilization scheme to enable early detection of potential problems and timely implementation of corrective measures.

66. The proposed harbor in Chilaw will not create a significant adverse impact on the conveyance capacity of Chilaw Lagoon. However, the interventions at the lagoon mouth may cause upstream flooding if the outlet is closed, and a new outlet cut through the reef. However, if the jet pump option is adopted (para. 63), there would be no additional impact on the coastal drainage pattern of the area. In the other proposed sites (Ambalangoda, Hambantota, and Kalametiya), no significant adverse impacts are expected on the existing coastal drainage patterns since, at all three sites, the immediate hinterland, is sufficiently elevated from the coastline, to prevent surface runoff from backing up and causing significant alterations to the coastal drainage pattern. 2. Impacts on the Ecological Environment

a. Impacts on Water Quality

67. The typical waste materials generated at a harbor/anchorage are fish waste, which is normally 5 percent of the total fish landing; general litter from fish auction areas; unserviceable fishing gear; food waste, paper, and bags; wastewater from fish processing, boat cleaning, and domestic activities; waste oil from inboard engine boats; and human sewage.

68. To control these impacts, the harbors and anchorages will be provided with a sound solid waste management system; a wastewater collection, treatment, and disposal system; and proper toilet facilities. In addition, an independent stormwater drainage system will be in place to prevent surface runoff from washing off pollutants into the harbor/anchorage basin. Bilge water from boats using the ports will be collected in holding tanks on the dock and then be pumped into the wastewater treatment system. Vessels will not be allowed to dump their wastewater in the harbor. Boat operators will be trained and instructed to provide containers for spent oil from boat engines and to safely discard the oil in the port. The oil will then be delivered to recycling facility. CFHC will enforce these practices as a condition for vessels to use the ports. The design of the wastewater treatment facilities will be part of the detailed engineering designs of the harbors and anchorages. Overall, the provision of such waste disposal facilities as part of the fishport improvements will result in positive environmental impacts, particularly by alleviating the current lack of wastewater disposal and treatment systems at the selected Project sites.

b. Impacts on Habitat Areas

69. In general, no adverse biological or ecological impacts of any significance are expected as a result of the coastal protection works in view of the lack of sensitive biota in the CRMP areas. Only in Hikkaduwa South could be some negative ecological impacts occur because of the presence of sea turtles and the occasional use of the beach as a turtle nesting site. The coastline stabilization scheme will have a positive impact for the turtles as it will ensure the existence of a sandy beach for turtle nesting sites. A monitoring program will be carried out before, during, and after beach nourishment, in coordination with qualified turtle conservation groups, so that appropriate protective measures can be taken if any turtles or nests are found in the area during the construction stage.

70. No impacts are anticipated in Chilaw as ecologically rich areas are at least 3 km upstream of the proposed harbor location, and the harbor does not support any habitats of ecological significance. In Hambantota and Kalametiya, the ecological environment at the proposed CRMP sites is not complex and the sites have been used as fishery anchorages for a considerable time. As such, it is unlikely that the proposed CRMP, which will essentially upgrade the existing facilities, will not create additional significant adverse impacts on marine habitats. No corals will be directly destroyed by dredging operations or construction of breakwaters. Benthic organisms in the immediate vicinity of the port could be adversely affected by the increased water turbidity lasting several months. However, over time, the bottom environment will tend to accumulate fine sediments and be recolonized by soft-bottom or sand- dwelling communities. Thus, the impact of dredging on the benthos in the port vicinity is expected to be temporary. By comparison, the potential economic and aesthetic impacts of the proposed improvements will be more significant. In Ambalangoda, the reef area surrounding the small offshore island and the bathing area south of the proposed anchorage may be slightly affected by effluents from the anchorage site during construction and operation. This could result in minor losses of subsistence and recreational opportunities. Overall, however, the anticipated long-term adverse impacts on habitat areas due to the operation of the proposed anchorage facilities are expected to be minimal. c. Impacts on Fishery Resources

71. The improvement of the fishery anchorages and landing sites into harbors and anchorages, respectively, could increase pressure on the coastal fishery resources. On the other hand, improving the harbors and anchorages and providing fishers with the necessary shore-based facilities will encourage them to acquire larger vessels, which will enable them to fish in offshore waters. This will, in effect, relieve fishing pressure in the coastal areas. Further, the fisheries management subcomponent of the CRMP is meant as a safeguard to ensure that fisheries development activities, including fish port improvements, do not lead to unwarranted increase in fishing pressure. Towards this end, this subcomponent will include (i) improving fisheries data collection and monitoring systems at the local and regional levels and establishing linkages between the district fisheries extension offices (DFEOs) and the central MFARD, (ii) strengthening of the fisheries licensing capability of MFARD and DFEOs, and (iii) enhancing local-level fisheries law enforcement capabilities. The licensing system for coastal fisheries will be improved and computerized and its implementation strengthened to maximize the utility of the license as a tool for fisheries management and revenue generation, and the capabilities of MFARD and other concerned agencies will be enhanced in the area of investigation and prosecution of violations of fisheries laws and ordinances.

3. Socioeconomic Impacts

a. Impacts on Public Health

72. Coliform bacteria constitute an important measure of water quality, particularly from the public health perspective. However, the public health concern is associated not only with coliforms but also with viruses and pathogens that are frequently found with the coliform bacteria and abound in the unsanitary conditions of the existing fish anchorages. Fish washed with filthy seawater is very likely to be contaminated with coliforms and pathogens that pose a threat to the health of consumers. Also, the presently untreated wastewater discharged from the anchorages threaten the recreational water quality of adjacent beaches. Swimmers in contact with seawater contaminated with viruses and pathogens could contract gastrointestinal diseases or various skin ailments. To correct these conditions and the unhygienic practices of fishers and fish processors, the Project will provide adequate freshwater supply, wash areas, and toilets at the harbors and anchorages for people using the harbor. The harbors and anchorages will also be designed with waste disposal facilities; wastewater treatment systems; and fish unloading, handling, and marketing areas that conform to international health and hygiene standards. The cleanliness of the fish landing areas and auction sheds will also be maintained by CFHC personnel. The CRMP’s information, education, and communication campaign will also target fish harbor users and staff and will focus on responsible use of harbors and anchorages as well as the effects of mishandling and unhygienic and unsanitary practices on fish quality and public health. Altogether, these measures will minimize public health threats from harbor and anchorage operations.

b. Impacts on Ongoing Fishery Activities

73. As the fishery harbors and anchorages are to be constructed in locations that have similar facilities, construction of new facilities may disrupt the ongoing activities and affect the livelihood of fishers. In Chilaw, a large fleet of over 3,000 boats operate. Nearly half the boats have inboard engines and fiberglass hulls. To reduce the likely impacts of harbor construction on the fishers' activities, construction will be phased so that at least 50 percent of the existing facility is available during the first phase of construction and the first-phase facilities are available during the second phase of construction. Moreover, CFHC, which will be responsible for managing harbor construction, will assure that construction is completed on schedule in order to reduce the duration of the impact. In Hambantota, harbor construction is not expected to have a significant impact on fishery activities except when underwater rock blasting is carried out, in which case, adequate prior warning should be given to fishers in the area. At Ambalangoda, construction is not likely to have a significant impact on present fishery activities as the fishers can easily move to adjacent locations during construction work.

c. Impacts on Present Beach Users

74. Construction activities along beaches temporarily disturb their scenic and recreational value for tourists. Impacts can be minimized by consulting hotel managements and carrying out the construction work during the tourist off-season. Internationally acceptable engineering practices at beach construction sites will be observed to minimize impacts.

VI. COST-BENEFIT ANALYSIS

75. The CRMP is estimated to cost about $79.61 million, including provisions for price and physical contingencies. Of this total, $40.0 million (or 50.2 percent) will be financed by the Bank; about $12.76 million (16.0 percent) by the Government of Netherlands; about $0.09 million (about 0.1 percent) by Project beneficiaries; and the balance of $26.76 million (33.7 percent) by the Government of Sri Lanka. The CRMP is deemed economically viable, with an estimated economic internal rate of return of 15.1 percent based on the calculated stream of net incremental costs and benefits attributable to the CRMP over 20 years.

76. Quantifiable benefits are projected to arise as a result of the CRMP interventions, particularly (i) prevention of losses of residential, commercial, and industrial facilities, and coastal road and railway infrastructure, and losses to the tourism industry, as a result of the coastline stabilization component; (ii) improvements in economic, aesthetic, and recreational values and enhanced long-term sustainability of ecological habitats such as lagoons, estuaries, mangroves, wetlands, and coral reefs, as a result of the CERM component; (iii) increased availability of fish through increased fish landings and reductions in fish losses and higher incomes to fishers as a result of improved fish handling and processing due to interventions under the fisheries management and fish quality improvement component; and (iv) greater supplemental income opportunities and increased household incomes as a result of activities under the CERM component's social programs.

77. The costs associated with mitigation measures, such as wastewater treatment, and environmental monitoring have been included as part of the CRMP budget. About $1.0 million has been budgeted for waste disposal systems to be provided at the fishery harbors and anchorages and $0.11 million for clean water supply. Regular monitoring activities, which will include monitoring of environmental impacts, have been provided a budget of $1.0 million over five years. Information, education, and communication, and training, which will include environmental awareness building, has a budget of $0.56 million.

VII. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING

A. Institutional Requirements

78. MFARD, as the CRMP Executing Agency, will have overall responsibility for environmental monitoring through the PMO to be set up within the ministry, and in coordination with the FPIUs to be established within the divisional secretary offices at six CRMP locations and with project implementation units (PIUs) at CCD and CFHC. The FPIUs will be headed by site managers and assisted by the DFEOs and local government personnel. The PIUs at CCD and CFHC will be under the direction and supervision of PIU heads who will work closely with the project director. PMO, the PIUs, and the FPIUs will have adequate and qualified technical staff and will be provided with necessary equipment and vehicles. The PMO will be responsible for preparing consolidated environmental monitoring reports as part of regular monitoring, with inputs from the PIUs and FPIUs.

79. Under the supervision of PMO, the PIUs and FPIUs will carry out day-to-day environmental monitoring work for all the components within their areas of coverage and will prepare monitoring and assessment reports for submission to PMO. Various MFARD agencies will assist in monitoring specific activities or impacts of the CRMP, such as (i) CCD, for coastline stabilization works and CERM activities; (ii) CFHC, for fishery harbors and anchorages; and (iii) the Department of Fisheries and Aquatic Resources (DFAR), for fisheries management and fish quality improvement interventions.

B. Monitoring Program

80. The monitoring program will entail continuing data gathering and analysis to ensure the effectiveness of the mitigation measures for potentially adverse environmental impacts arising from construction and operation of CRMP facilities.

81. For the harbor and anchorage facilities, the following will be monitored: (i) changes in coastline features such as erosion or deposition resulting from disruption of sediment transport along shorelines due to construction of breakwaters; (ii) water quality during construction, particularly turbidity caused by dredging activities, and its effects on nearby bathing beaches; (iii) noise levels from construction activities, particularly from blasting of breakwaters; (iv) wastewater discharges during port operation, particularly washwater from fish auction halls, water from toilets, and bilge water from boats; (v) water quality in the harbor basin and surrounding coastal water during harbor and anchorage operation, particularly for key parameters including suspended solids, biological oxygen demand, dissolved oxygen, coliform bacteria, oil and grease, and surfactants; (vi) use of the harbor, by various boat sizes to ensure that small boat operators are not deprived of space by larger vessels; and (vii) water requirements and water supply.

82. Monitoring will include social and livelihood-related data, fish landings and fish fleet data, and resource-related data to be collected by data collectors and staff of DFAR, CFHC, and CCD, in cooperation and collaboration with National Aquatic Resources Research Agency, nongovernment organizations (NGOs), research institutions, and universities. They will be expected to provide (i) regular quarterly reports on data and findings, and (ii) annual consolidated reports on the various findings and analysis. The data required for monitoring purposes will include (i) social and livelihood-related data, (ii) fisheries-related information, and (iii) resource-related data.

83. Efforts to achieve the goals of each component will be monitored carefully to assess their effectiveness. Target groups and participating agencies/institutions (i.e., CCD, DFAR, CFHC, National Aquatic Resources Research Agency, and NGOs) will be involved in the monitoring exercises. Aside from the quantitative indicators presented in the CRMP framework, additional measurable indicators to be considered for more specific activities will include (i) coastal and fisheries resources, (ii) physical infrastructure, (iii) livelihood and social welfare, and (iv) institutional support. VIII. PUBLIC INVOLVEMENT

84. The CRMP has a very strong beneficiary orientation and provides various measures meant to elicit the active involvement of the target groups, including women, in implementation, thereby bringing them into the mainstream of resource management and poverty reduction efforts. In anticipation of beneficiaries’ active participation and to give them a sense of ownership of the CRMP, which are critical to its success as a community-based undertaking, socioeconomic surveys, national- and local-level workshops, and focus group discussions were conducted as part of the design process. The results revealed beneficiaries’ problems, needs, wants, and aspirations as well as their strong points and potential contributions. The results confirm the appropriateness of their selection as beneficiaries and of the correctness of the approaches to be taken by the CRMP (Appendix 4).

85. To assist in the design of the proposed CRMP, a rapid social assessment of target beneficiaries was conducted among selected coastal communities within the identified CRMP area along the northwestern, western, and southwestern coasts. The assessment was conducted to (i) identify the potential beneficiaries, including women, children, and vulnerable groups, likely to be affected by the CRMP; (ii) identify and describe the status of the target beneficiaries to describe their physical location and present socioeconomic characteristics and conditions, information that will serve as benchmarks against which future improvements can be compared; (iii) analyze the target populations' need or demand for the CRMP and gauge the level of contribution they are willing to make to become involved in it; (iv) generate information to be used as inputs in the design of CRMP activities and implementation arrangements that will enable community participation and involvement; and (v) provide the basis for (a) analyzing the social dimensions of the proposed CRMP, including gender issues and concerns, beneficiary participation, and possible involvement of NGOs and community-based organizations (CBOs) in implementation, and for (b) designing measures to prevent negative economic or social impacts of the proposed components.

86. In addition, a series of national consultative workshops was organized and conducted under the Bank-funded technical assistance (TA 3034-SRI: Coastal Resource Management Project): (i) an inception workshop to introduce the CRMP to the stakeholders and elicit their cooperation during planning and design; (ii) a national consultative workshop, to discuss the draft framework prepared by the consultant team and seek stakeholder input for its finalization; and (iii) a concluding workshop, to validate the design of the proposed CRMP and obtain the concurrence of the stakeholders’ representatives to the proposed interventions/activities and implementation arrangements. In addition to these broad-based national workshops, two regional workshops (one in Galle and another in Chilaw) were held to ensure the wider participation of the local communities and local government agencies as well as locally based NGOs in planning and formulation.

87. Thus, the CRMP was designed with full consideration given to the beneficiaries' needs and wants, and their possible contributions attaining CRMP objectives. Moreover, the approach to implementation is participatory, with community organization and social preparation as key tasks that will continue throughout implementation. This approach will work through the local community coordinating councils to be organized or strengthened at six CRMP locations. The councils will comprise community representatives and local government officials, including NGOs and CBOs. An information, education, and communication campaign will be carried out nationwide but with a strong focus on coastal communities at the selected CRMP sites. IX. CONCLUSIONS

88. Environmental and social considerations have been included in site selection and the design of the CRMP components and activities. The complete results of the EIA carried out under the feasibility study are presented in the EIA report.

89. Potential adverse environmental impacts were identified and include long- and short- term impacts on the physical and ecological environment. These include possible disruption of coastal processes by dredging and coastal construction; increased water turbidity; potential pollution of coastal waters due to increased discharge or improper disposal of wastewater, oil, sludge, etc.; and increased stress on local road traffic due to transport of construction materials. However, these impacts are mostly short term in nature, being expected to occur during construction, and could be effectively mitigated by appropriate engineering measures that have been identified and incorporated in the proposed CRMP design. Sufficient budget for mitigation measures has also been included in the CRMP’s cost. With the installation of adequate water supply and sanitary facilities, water treatment plants, and other pollution abatement measures at the fishery harbors and anchorages, the proposed activities are expected to improve fish handling, improve product quality, and reduce waste, with obvious benefits in increased economic returns, improved public health, and reduced pressure on the coastal fisheries resources.

90. On the whole, significant environmental benefits can be expected from the CRMP in terms of resource conservation, pollution abatement, coastline stabilization, and improvement of public health, with many of the proposed activities serving as environmental mitigation measures.

APPENDIXES

Number Title Page Cited on (page, para.)

1 Proposed Coastal Environment and Resource Management Activities 22 2, 6

2 Proposed Mitigation Measures, Coastline Stabilization 23 12, 52

3 Summary of Proposed Mitigation Measures, Fishery Harbors/Anchorages 25 12, 52

4 Public Consultations for the Project 28 19, 84 22 Appendix 1

PROPOSED COASTAL ENVIRONMENT AND RESOURCE MANAGEMENT ACTIVITIES

A. National-Level Coastal Environment and Resource Management (CERM) Activities 1. Updating of the national Coastal Zone Management Plan 2. Strengthening of information and database management 3. Conduct of national information, education, and communication activities B. Local-Level CERM Activities Special Area Management Sites Other Sites

Sites

l = initiate activity m = continue ongoing activity

Module 1: Community Strengthening Establish or Strengthen Community Coordinating Committee l m l l l l m Module 2: Awareness Building 1. Conduct Information and Education Campaign l m l l l m m 2. Establish Visitor Centers m l l l Module 3: Special Area Management Planning 1. Prepare Environmental and Socioeconomic Profiles l l m m 2. Develop or Review Special Area Management Plans l m l m m m Module 4: Habitat Conservation and Resources Management Activities 1. Plan and Implement Coral Reef Management Measures l l 2. Develop and Implement Measures for Lagoon Management m l m l (including mapping and delineation) 3. Develop and Implement Mangrove/Wetlands Management Activities m l m l 4. Develop and Implement Biodiversity Conservation Activities l m m l m 5. Develop and Implement Measures for Outdoor Recreation/ m l m l l Sustainable Ecotourism Module 5: Physical Processes Research/Develop/Implement Measures to Improve Water m l l l l Flow/Water Quality in Lagoons Module 6: Social Programs 1. Develop Livelihood Enhancement Activities l m l l l m 2. Provide Sanitation Infrastructure l l 3. Design/Implement Solid Waste Management/Pollution Prevention l l l Program 4. Develop Measures for Cultural/Historical Preservation l l l l PROPOSED MITIGATION MEASURES, COASTLINE STABILIZATION

Impact Mitigation Measures Remarks

Construction Stage

Prequalification criteria for Include requirements as condition Quarrying and subcontractors will include of contract. Check whether the blasting. assessment of contractors' experience subcontractor has a valid at minimizing environmental impacts. environmental protection license from Central Environmental Authority to operate the quarry for the Project.

Transport of Slow moving loaded trucks will not use Speed limits should be imposed construction main roads during peak traffic hours. along local roads. Maintaining material. Local roads and road structures will be sufficient stockpiles of material assessed in consultation with the may facilitate the construction Road Development Authority to phase. determine temporary improvements required prior to commencing heavy Care should be taken to minimize loads. disturbance to private property The local authority will be involved and privacy. whenever beach access is through private property, as the tip of the southern sand spit at Kalu Ganga mouth.

Offshore sand Sand extraction will be done from Detailed study will be undertaken extraction. deepsea areas at least 8 km offshore; during detail design. dredging will be limited to 2 km or below existing seabed level at depths equal to or greater than 15 m. Dredging will be carried out in uniform linear channels along the seabed within rectangular boundaries of the borrow region.

Present beach Construction site housekeeping will be users. practised. In areas where tourism is dominant, It will be useful to involve the schedule heavy construction work Ceylon Tourist Board when during the tourist off-season planning construction work in tourist beaches.

Construction waste. Waste matter will not be disposed of in the sea or on the beach, and will be removed from the site regularly in consultation with the local authority.

Inadequate Competent construction supervisors construction will be employed to monitor monitoring. environmental performance by the contractors, including those involved in offshore sand extraction activities Impact Mitigation Measures Remarks

as well. Accelerated sea Structural designs will explicitly level rise. consider impacts of accelerated sea level rise.

Impacts on adjacent No significant impacts anticipated Post- construction monitoring of coastal stretches other than the beneficial impact of adjacent coastline is sufficient. stabilized beaches.

Alteration to coastal Hydraulic performance of river mouths Particular attention will be drainage. within the areas will be monitored. paid to ·Gin Oya and Kelani Suitable provisions will be incorporated to ensure that local Ganga, and stream outlets from the hinterland are ·coastal stretches of Payagala, not blocked by the stabilization Beruwela, Bentota, and schemes. Hikkaduwa.

Maintenance of sand The maintenance requirement will be If stockpiles are maintained, they nourishment included in the capital requirement but could be promoted to the schemes. stored in stockpiles (artificial dunes) construction industry as a means for later use. If not feasible, the of indirectly curtailing sand mining requirements will be included in the from rivers. scope of the detail study for sand extraction and mitigation measures will be designed accordingly.

Impacts on coastal No significant impacts anticipated. Consultation with DWLC for habitats Hikkaduwa.

Potential for Conservation programs will be encroachment into implemented in the newly stabilized areas. created beach areas such as beach parks.

Impacts on quality of Coast Conservation Department This applies in particular to life values. shipwrecks in the Dickowita sea. will ensure that nearshore artifacts

such as shipwrecks are preserved. 27 Appendix 3, page 1

SUMMARY OF PROPOSED MITIGATION MEASURES, FISHERY HARBORS/ANCHORAGES

Impact Mitigation Measures Remarks

Construction Stage

Quarrying and Prequalification criteria for Include requirements as condition blasting. subcontractors will include of contract. Check whether the assessment of contractors' subcontractor has a valid experience at minimizing environmental protection license environmental impacts. from the Central Environmental Authority to operate the quarry for the Project. . Transportation of Slow moving loaded trucks will not construction use main roads during peak traffic material. hours. Speed limits will be imposed Local roads and road structures will along local roads. Maintaining be assessed in consultation with the sufficient stockpiles of material Road Development Authority to will facilitate the construction determine temporary improvements phase. required prior to commencing heavy loads.

Disruption to Chilaw: ongoing fishery ·Rapid construction program will be Temporary anchorage facilities at activities. ensured. alternative locations within the ·Construction works will be phased so Chilaw lagoon/lake system are that at least 50 percent capacity is available. available for ongoing fishery activities.

Kalametiya-Hambantota: ·Rock blasting, if necessary, will be carried out inside the basin area with the agreement of anchorage users. Access road will be improved to continue to serve the long-term needs of the anchorage. ·Access road to the beach will need improvement to facilitate transportation of rock for breakwaters. Disposal of dredge. Dredged material will be disposed of Bottom samples will be analyzed at suitable sites identified during to determine presence of detailed design, at least 3.5 km away contaminants. offshore.

Construction waste. Waste matter will not be disposed of in the sea or beach, and will be removed from the site regularly in consultation with the local authority of the area. 27 Appendix 3, page 2

Impact Mitigation Measures Remarks

Inadequate Competent construction supervisors Construction monitoring will construction will be employed. Their routine work include monitoring of social monitoring. will include monitoring of environmental performance by the impacts during construction. contractors. The concerned persons will liaise with relevant authorities in order to obtain approval for ad hoc requirements during construction, such as relocating water lines, temporary electricity to site, extra construction space, etc.

Operation and Maintenance Stages

Accelerated sea Structural designs will consider level rise. impacts of accelerated sea level rise.

Impacts on adjacent Chilaw: coastal stretches The jet pump solution is an adequate measure. Expert opinion will be obtained during detailed design on the Ambalangoda: likely long-term realignment of the Further analysis will evaluate required shoreline within Hambantota Bay. coastal stability with respect to the anchorage.

Hambantota: Realignment of Hambantota Bay will be monitored after constructing the breakwater structures.

Alteration to coastal Chilaw: drainage No impact if jet pump solution is adopted. With an alternative structural solution, will be necessary to check the ability to relieve floodwaters effectively.

Kalametiya: No impact provided new sand bars do not form at the mouth of the lagoon outlet channel.

Disposal of See mitigation measures for the maintenance construction stage. dredging.

Harbor/anchorage In all cases, wastewater collection, 27 Appendix 3, page 3

Impact Mitigation Measures Remarks pollution. treatment and disposal systems will be incorporated in the engineering designs. In all cases, solid waste collection and A system will be put in place for safe disposal measures will be waste oil from boats to be incorporated in the designs. collected and disposed safely. Special precautions will be taken to prevent oil pollution due to spillage or deliberate disposal of used oil into harbor/anchorage waters.

Impacts on nearby No significant adverse impacts are coastal habitats. anticipated.

Impacts on fishery. Licensing of boats in harbors/anchorages will enable monitoring of legitimate users. Night beacons will be installed at breakwater heads for ease of identification. Entrance channels and its orientation will be decided in consultation with the fishers.

Impacts on Local access roads will be resurfaced infrastructure and to maximum available width (no new utilities. access roads will be built). Freshwater supply capacity will be checked with the National Water Supply Board. If necessary, Emergency response plans will augmentation schemes will be be prepared by the promoted with the initiative from the harbor/anchorage management. Government. Similar approach will be adopted for electricity supply. Sufficient fire fighting capacity will be installed. First aid facilities will be available within the harbor/anchorage premises.

Impacts on quality of No significant adverse impact is life values. anticipated.

Externalities. The key externality identified was the pollution loading of the proposed Project areas from sources outside the Project area. The issues will be resolved in consultation with the relevant local authorities. 1

PUBLIC CONSULTATIONS FOR THE PROJECT

Number of Participants Activity Venue Date Topics Discussed

1. National Workshop (i) Inception workshop Bandaranaike 16 Nov 1998 80 · introduction of the Memorial project preparatory International technical assistance Convention (PPTA)a to various Hall, Colombo stakeholders concerned with coastal resource management; · workplan of consultant for the design of the proposed Project; · initial discussions regarding issues and concerns that need to be addressed in coastal resource management; · site selection criteria; and · cooperation and support of the stakeholders in Project design and implementation.

(ii) Planning workshop Tangerine 10-12 Jan 1999 65 · Identification of the core Beach Resort, problem contributing to Kalutara the loss and degradation of coastal resources; and · Formulation of the Project planning matrix to serve as basis for designing the proposed Project using the participatory approach.

(iii) Concluding Hotel Lanka 26 Apr 1999 100 comments on the PPTA workshop Oberoi, draft final report regarding Colombo the design of the proposed Project as submitted by the consultant for incorporation into the final report.

a TA 3034-SRI: Coastal Resource Management Project, for $850,000, approved on 25 June 1998. 2

Number of Participants Activity Venue Date Topics Discussed

2. Regional Workshop Chilaw 16 Jan 1999 32 · identification of the core (i) Chilaw planning Resthouse problem and contributory workshop problems that lead to the loss and degradation of coastal resources; and · formulation of the (ii) Galle planning Galle Fort 30 Jan 1999 60 Project planning matrix workshop to serve as basis for designing the proposed Project using the participatory approach.

3. Focus Group Divisional 19 Jan 1999 14 · pollution of Lunawa Discussion Secretary Lagoon resulting from (i) Moratuwa Office inability of local government authority to implement laws and regulations; and · community participation in lagoon management.

(ii) Lunawa Sarvodaya 11 Feb 1999 13 · Background of proposed Center Project; · activities proposed to be undertaken under the PPTA; · possible components of the proposed Project; and · participants' view regarding the proposed Project.

(iv) Kalametiya Fishery 18 Feb 1999 25 · need for an anchorage, Community with an ice plant, at the Center site as fishers anchor their multiday boats in Tangalle and Kirinda; · private sector participation in the establishment of an ice plant; · capital requirements for improving market and post-harvest facilities; · lack of management skills of fishery cooperative officials; and · need for latrines. 3

Number of Participants Activity Venue Date Topics Discussed

(v) Unawatuna Harabaduwa 19 Feb 1999 17 · need to introduce a Pradeshiya mechanism for resolving Sabha conflicts in the use of the Building beach; · need to strengthen the fishery cooperative societies in the area; · pollution of the beach by local tourists and some hotels which dispose liquid and solid waste; and · need for latrines/toilet facilities.

(vi) Madu Ganga Balapitiya 19 Feb 1999 14 · ongoing conflict Pradeshiya regarding the multiple Sabha use of the Madu Ganga Building lagoon; · coastal resource management regarding conflicting use of the estuary and lagoon areas; and · need to strengthen coordination and complementation of efforts of community, nongovernment organizations and community-based organizations in coastal resource management.