ADB champions innovative financing and strategic partnerships to protect Sri Lanka’s water tower
By Sanath Nanayakkare Sri Lanka’s central and upper watershed areas – frequently described as the nation’s water tower – face escalating pressures from decades of deforestation, soil erosion, and unsustainable land use. Serving as the source for over 100 main rivers and more than 1,000 feeder streams, these critical landscapes sustain water security, agricultural productivity, […]
The Asian Development Bank (ADB) convened a knowledge programme titled "Investing in Sri Lanka’s Upper Watersheds: Unlocking Financial Capital for a Resilient Future" in Colombo on August 13 to address the urgent need to protect Sri Lanka’s central and upper watershed areas, frequently referred to as the nation’s water tower. These areas face severe threats from deforestation, soil erosion, and unsustainable land use practices.
Spanning over key hydrological systems, they support water security, agriculture, hydropower, and biodiversity.
Recent extreme weather events, notably Cyclone Ditwah, exacerbated the vulnerabilities of these landscapes. The storm destroyed 34 percent of the sensitive forest cover in the Central Highlands and inflicted damages estimated at US$4.1 billion - nearly 4 percent of the country’s GDP. To tackle these challenges, ADB Country Director for Sri Lanka Shannon Cowlin underscored the importance of recognizing healthy watersheds as strategic economic assets, not just environmental features.
Cowlin highlighted the shift towards viewing nature as productive infrastructure and the necessity of innovative financing mechanisms such as blended finance, watershed funds, and payments for ecosystem services to mobilize resources beyond traditional project financing. She also mentioned the Cabinet’s approval for a dedicated Upper Watershed Area Management Authority and discussions on the Climate Action and Nature-Positive Investment Fund (CANOPY Fund).
The ADB commissioned two studies to support these initiatives: a hydrological assessment by the International Water Management Institute (IWMI) and an economic valuation study examining the true value of water and ecosystem services. Dr. Rohan Pethiyagoda, an eminent biodiversity scientist, delivered a keynote address on the root causes of highland degradation.
He differentiated between natural geological processes and human-accelerated damage, noting that while tea plantations are not inherently harmful to soil stability, the neglect of tea lands under shifting administrative oversight and the transition from deep-rooted seedling tea to shallower-rooted varieties have exacerbated soil vulnerability.
To ensure the success of the Upper Watershed Management Authority, Dr. Pethiyagoda emphasized treating Regional Plantation Companies (RPCs) as strategic partners. Their extensive management capacity, labor force, and infrastructure could bridge gaps that government agencies cannot. He proposed reviving the spirit of collaborative stewardship similar to the 1937 Fauna and Flora Protection Ordinance, which empowered non-government actors in conservation efforts.
The SKOP forum participants concluded that safeguarding Sri Lanka’s upper watersheds requires a shift from adversarial regulation to a unified framework. By combining institutional authority, scientific insights from institutions like the University of Peradeniya, and the capabilities of the private sector, Sri Lanka can transform its natural capital into a foundation for national resilience and long-term economic prosperity.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
