5. Impacts and effectiveness of logging bans in natural forests: Sri Lanka - H.M. Bandaratillake

INTRODUCTION

Land area and forest cover

Sri Lanka has a land area of about 6.5 million ha. Its closed canopy forest cover has dwindled rapidly from about 84 percent in 1881, to 44 percent in 1956 and subsequently to 27 percent in 1983. According to the Forest Cover Map of Sri Lanka prepared by the Forest Department in 1992 (Figure 20), Sri Lanka’s total natural forest cover, including sparse forests, was around 2.0 million ha (30.9 percent of the land area). Closed canopy natural forest cover was 1.5 million ha, or 23.9 percent of Sri Lanka’s total land area (Table 26). This suggests that the average rate of deforestation during the past few decades, both planned and unplanned, had been around 42 000 ha per year. Per capita forestland declined from 0.32 ha in 1956 to 0.09 ha in 1992 (Table 27).

The decline in forest cover is primarily due to rapid population growth and resulting land shortages and poverty. Agricultural production has increased mainly by converting natural forests to farmland. Nearly 809 000 ha of natural forests have been lost to agricultural and residential use since 1948. The Mahaweli Development Project alone replaced 243 000 ha of forests.

Figure 20. Sri Lanka’s forest cover

Table 26. Natural forests in Sri Lanka, 1992

Forest type		Total area (ha)	Total land area (percent)
Closed canopy:
	Montane	3 108	0.05
	Sub-montane	68 616	1.04
	Lowland rain	141 506	2.14
	Moist monsoon	243 886	3.69
	Dry monsoon	1 090 981	16.49
	Riverine	22 435	0.34
	Mangrove	8 688	0.13
Sub-total		1 579 220	23.88
Open canopy:
	Sparse	464 076	7.01
Total		2 043 296	30.89

Source: Ministry of Agriculture, Lands and Forestry, Forestry Sector Master Plan (1995)

Year	Population density (persons/km2)	Forest cover (million ha)	Forest cover (percent of land area)	Per capita forest area (ha/person)
1900	54	4.5	70	1.3
1956	131	2.9	44	0.3
1983	230	1.8	27	0.1
1992	269	1.6	24	0.1

Source: Forest Department

Table 28. Sri Lanka’s diversity and status of selected flora and fauna groups in lowland rainforests and moist monsoon forests of Galle, Matara, Kalutra and Ratnapura districts

Selected group	No. of species in group	No. of species recorded in rain/moist monsoon forests
		Total	Rare#	Endemic	Rare endemic
Woody plants	1 496	619 (41%)	119 (8%)	299 (20%)	49 (3%)
Butterflies	>242	50 (21%)	14 (6%)	2 (1%)	0 (0%)
Molluscs	266	*>27 (10%)	9 (3%)	22 (8%)	6 (2%)
Freshwater fishes	65	21 (32%)	10 (15%)	13 (20%)	3 (5%)
Amphibians	48	27 (56%)	8 (17%)	14 (29%)	3 (6%)
Reptiles	162	44 (27%)	13 (8%)	22 (14%)	5 (3%)
Birds	419	109 (26%)	22 (5%)	19 (5%)	1 (+%)
Mammals	89	25 (28%)	5 (6%)	3 (3%)	0 (0%)

Source: FD/IUCN (1997)

# Rare species are defined as those recorded in only one forest.

* This total is an underestimate because many more species await identification.

• reduction in biodiversity;
• irregular water supply;
• shortened life span of irrigation channels and reservoirs;
• soil erosion and associated loss of soil fertility;
• reduction of wood supplies and the resulting price increase of wood and wood products; and
• scarcity of fuelwood in some localities

Forestry in the national economy

According to Central Bank of Sri Lanka statistics, in 1998 the Sri Lankan forestry sector contributed about SL Rs 15 billion to the national economy, or 2 percent of the total gross domestic product (GDP). However, the actual contribution of the forestry sector is much higher than what is reported. The national income and product accounts concentrate only on market-oriented activities. Even these activities are not noted properly due to a lack of data. The statistics also fail to account for non-market production of sawnwood, fuelwood, and various forms of non-wood forest products (NWFPs). According to estimates by the Forestry Sector Master Plan (FSMP) (1995), the forestry sector contributed approximately 6 percent of the total GDP if the values of all the forest products, services, and employment generated are included. The FSMP also estimates that the forestry sector employs approximately 331 000 people, doubling the official employment figure. Although wood and charcoal are the country’s main sources of energy, the contribution of the forestry sector to the energy sector is poorly recognized. Fuelwood supplies approximately 40 percent of Sri Lanka’s energy, and 90 percent of the country’s population use fuelwood as the main source of fuel.

The forests also provide beneficial non-extractive services, including clean water, grazing land, ecotourism, recreation, carbon sequestration, climate control, biological diversity, and cultural values.

Forestry sector institutions

Four ministries are involved in the forestry sector in Sri Lanka:

• The Ministry of Forestry and Environment is the main agency involved in the sector through the Forest Department and the State Timber Corporation (STC).

- The Forest Department is responsible for managing production forests and protection forests that include around 135 000 ha of forest plantations and 60 percent of the natural forests. The Protected Area System, under the Forest Ordinance (FO) and National Heritage and Wilderness Areas Acts, are also protected and managed by the Forest Department.

- The STC, established in 1968, is a Government corporation responsible for harvesting and marketing wood from State-owned forests and forest plantations. With a monopoly on timber from State forests, it operates sawmills, impregnation and seasoning plants, furniture factories, and timber sales depots.

• The Ministry of Public Administration, Parliamentary Affairs and Plantation Industries, through the Department of Wildlife Conservation (DWLC), Rubber Control Department, Coconut Cultivation Board, Rubber and Coconut Research Institutes and the forestry activities in the Tea Estate Sector.

- The Department of Wildlife Conservation is responsible for conserving fauna and flora in approximately 13 percent of Sri Lanka’s land area. The DWLC is also responsible for enforcing the Fauna and Flora Protection Ordinance, which has declared approximately 30 percent of the forests under its jurisdiction as National Reserves and Sanctuaries (Protected Areas).

• The Ministry of Education, providing forestry education at the University of Sri Jayewardanapura and Post Graduate Institute of Agriculture at the University of Peradeniya.
• The Ministry of Industries that controls forest industries.

FORESTRY POLICIES

Sri Lanka has a long history of religious, cultural and social practices that have accorded a prominent place for tree planting and nature conservation. The British Colonial Government introduced large-scale clearing of natural forests to make room for coffee, tea, rubber and coconut plantations. The exploitation of timber was instituted through the adoption of felling rules in 1835, and timber-cutting licenses and a management system in 1879. FO No. 10 of 1885 enabled the declaration of reserved forests, sanctuaries and controlling the felling and transport of timber. In 1887, the British Colonial Government appointed a Conservator of Forests, whose duties included establishing the Forest Department. This initiated a trend towards forest conservation and an approach to scientific forest management. FO No. 16 of 1907 is the cornerstone of the present law relating to forests.

The first forest policy formulated in 1929 was considered groundbreaking because it introduced new objectives for forest management, including the export of forest products, creating self-sufficiency in construction lumber and fuelwood, conservation of soil and water, and preservation of indigenous flora and fauna. The process of mapping forest reserves began in 1931 and the concept of working plans for forest management was presented in 1933. The Forest Department also conducted forest inventories during this period. Extensive plantations were established with teak, eucalyptus, mahogany, albizzia, pines and Artocarpus (jak). The Fauna and Flora Protection Ordinance, which was enacted in 1937, protected wildlife in national reserves and sanctuaries. The forest policy was further clarified in 1938 when all natural forests above 1 500 m (5 000 feet) were designated climatic and protective reserves.

Forest policies during the post-independence period (1948-1979)

Prior to 1948, the Forest Department was responsible for wildlife conservation, protected area management and forestry. After Sri Lanka gained its independence, wildlife and protected area management were transferred to a newly established Department of Wildlife Conservation (DWLC). These two departments continued to be a part of the Ministry of Lands until the 1970s.

Influenced by the FAO declaration of the principles of forestry policy in 1951, the Government introduced the following comprehensive sectoral forest policy objectives in 1953:

• Maintain, conserve and create forests for the preservation and amelioration of the environment, soil and water resources, and the protection of the local fauna and flora when required for aesthetic, scientific, historical and socio-economic reasons.
• Ensure and increase, as far as possible, the supplies of small wood for agricultural requirements and fuelwood for domestic consumption.
• Maintain, as far as possible, a sustained yield of timber and other forest products for general housing, industrial, communication, and defense requirements.
• Work the forest to the highest possible economic advantage consistent with the foregoing objectives.

Following these objectives, many forest management activities covering conservation, establishment of industrial forest plantations, forest administration, legislation, forestry research and education were carried out by the Forest Department from 1950 to 1970. The working plans for sustained yield management were extended to cover forests in most forest divisions, thus placing all management planning and operations in the hands of the Forest Department.

A resource assessment (1965-1967) and a pre-investment study on forest industry development carried out in 1969 concluded that with appropriate forest management, the country could enjoy an adequate supply of timber and protective forest cover. This led to the establishment of domestic forest industries (e.g. Ginthota plywood factory, Kosgama plywood complex, Boosa sawmill and impregnation plant, and the STC). In the 1970s, with the commencement of the UNESCO Man and Biosphere (MAB) Program in Sri Lanka and the Government decision to conserve Sinharaja Forest, the Forest Department began to place greater emphasis on forest conservation.

Recent forest policies

Until the 1980s, forestry was considered to be a State responsibility. Increasing population pressure on forest land led to an amendment of the 1953 forest policy to involve local communities in developing private woodlots and forestry farms through a social forestry program. The implementation of the Community Forestry Project funded by the Asian Development Bank (ADB) from 1982 to 1990 reflected this policy change.

Following criticisms of the 1986 Forestry Master Plan (FMP)’s proposals for logging natural forests in the wet zone, an environmental management component was added to the five-year investment program. Thus, the Forestry Sector Development Project was launched in 1990. This established the Environmental Management Division in the Forest Department. A moratorium on logging operations in wet zone natural forests and subsequent logging bans in all the natural forests were imposed in 1990.

The National Heritage and Wilderness Areas Act was enacted in 1988 to preserve unique ecosystems and genetic resources, physical and biological formations. It precisely delineated areas constituting the habitats of threatened plant and animal species. The Sinharaja Forest, a primeval rainforest, was declared a national heritage under this act and UNESCO listed it as a World Natural Heritage site in 1988.

The need for a wildlife conservation policy was long recognized but a National Policy for Wildlife Conservation was only adopted in 1990 in response to the Sri Lanka National Conservation Strategy. The objectives, based on those of the World Conservation Strategy, are to:

• maintain ecological processes and life-sustaining systems;
• preserve genetic diversity, especially biodiversity and endemic biota; and
• ensure the sustainable utilization of species and ecosystems of immediate and potential importance to support the people.

This policy emphasized the urgent need to redress the drastic imbalance of protected areas, most of which are located in the dry zone (in 1990 around 90 percent of the protected areas under the DWLC were located in the dry zone).

The Forest Ordinance was amended in 1995 to incorporate a new category called “conservation forests” to cover forests set aside for conservation after implementation of the logging bans in natural forests.

The National Forest Policy of 1995

The National Forest Policy, formulated and approved by the Government in 1995 governs all forestry activities in the country except for the management of protected areas under the DWLC. The policy acknowledges that the natural forests are heavily depleted, and expresses concern for safeguarding the remaining natural forests for posterity to conserve biodiversity, soil and water resources. It emphasizes the importance of retaining the present natural forest cover, and increasing the overall tree cover. A large part of the natural forests should be completely protected. Multiple-use forestry is to be promoted, and the natural forests outside the protected area system are to be used sustainably to provide for the growing demand for bio-energy, wood and NWFPs, especially for the benefit of local people, while ensuring that environmental objectives are met.

The National Forest Policy recognizes that homegardens, other agroforestry systems and trees on non-forest lands have a crucial role in supplying timber and fuelwood. It also acknowledges the importance of public participation in forestry development and conservation. It emphasizes the need to develop partnerships with local people, communities, non-governmental organizations (NGOs) and the private sector in protecting forests, growing trees to meet household needs, supplying raw material for wood-based industries, harvesting, transporting, processing and distributing various forest products. The policy aims to broaden the institutional framework for forest management, with clearly defined roles and responsibilities for the various partners.

The overall objectives of the National Forest Policy are to:

• conserve forests for posterity, with particular regard to biodiversity, soils, water, and historical, cultural, religious and aesthetic values;
• increase the tree cover and productivity of the forests to meet the needs of present and future generations for forest products and services; and
• enhance the contribution of forestry to the welfare of the rural population, and strengthen the national economy, with special attention paid to equity in economic development.

Forestry Sector Master Plan (1995)

The main objectives of the Forestry Sector Master Plan (FSMP) are to prepare a comprehensive long-term development framework, ensure that the forestry sector can provide environmental services and various forestry products to meet the needs of the people, and contribute sustainably to the nation’s economic and social development. The plan covers the 1995-2020 period, and includes 10 development programs outlining short-, medium-, and long-term actions to develop forest conservation, multiple-use management of forests, commercial forest plantations, agroforestry, NWFPs and bio-energy. In addition, institutional support programs comprise development of legislation and institutions, human resources, research, extension services, and monitoring and evaluation.

The Five Year Implementation Program (FYIP) of the FSMP was developed by the Ministry of Forestry and Environment in 1997 to conserve forests and enhance the forestry sector’s contribution to the welfare of rural population and the national economy. The components of the FYIP include forest conservation, forest land allocation and macro-level zoning, commercial plantation development, multiple-use management of natural forests, social forestry, agroforestry, extension, forest-based industry and institutional development.

Key policy, legislation and institutional changes concerning the management of forest resources are summarized in Table 29.

Table 29. Key policy, legislation and institutional changes concerning management of Sri Lanka’s natural forests during the twentieth century

Year	Policy/legislation/institutional changes (Authority)	Provisions for forest management
1907	FO No. 16 (FD)	Protection of forests and their products within reserved forests and village forests, primarily to control exploration of timber.
	Amended several times from 1912 to 1995	Removed the requirement for import and export licenses. Introduced a provision for a reward fund and to eject encroachers Increased fines.
1995	FO (FD)	Incorporated a new category of forest reserves called conservation forests.
1929	First authoritative Forest Policy	Export of timber and forest products, self-sufficiency in timber and fuelwood. Preservation of indigenous fauna and flora.
1938	Amended	Clearing of forests prohibited above 5 000 ft (1 500m).
1937	Fauna and Flora Protection Ordinance No. 2 (FD)	Protection of wildlife in national reserves and sanctuaries and outside protected areas.
1964	Amendment Act No. 44 (DWLC)	Nature reserves and jungle corridors incorporated in national reserves.
1970	Amendment Act No. 1 (DWLC)	Intermediate zone, envisaged as a buffer zone for controlled hunting, was removed from the Ordinance.
1993	Amendment Act No. 49 (DWLC)	Refuges, marine reserves, and buffer zones incorporated with national reserves.
1948	Establishment of Department of Wildlife Conservation	Administration of Fauna and Flora Protection Ordinance. Management of protected areas declared under the Fauna and Flora Protection Ordinance.
1953	National Forest Policy	Emphasis on conserving forests, increasing supplies of small-dimension wood, maintaining sustained timber yields.
1980	Amended	Involve local communities in forestry development through social forestry.
1995	Reformulated (Approved by the Government)	Conserve forests, increase tree cover and productivity of forests and enhance the contribution of forestry to the welfare of the rural population and strengthen national economy.
1968	Establishment of State Timber Corporation	State organization for harvesting and marketing of timber from State-owned natural forests and forest plantations.
1970	UNESCO Man and Biosphere Program	Establishment of arboreta.
1982	Mahaweli Environment Project	Network of protected areas established to mitigate the impact of the Mahaweli Development Project on wildlife and to protect catchment areas.
1986	Forestry Master Plan	A long-term framework for development of the forestry sector.
1995	Forestry Sector Master Plan (approved by the Government)	A comprehensive long-term framework for sustainable development of the forestry sector.
1988	National Heritage and Wildness Areas Act No. 3 (FD)	Protection of State land with unique ecosystems, genetic resources, or outstanding natural features.
1990	National Policy for Wildlife Conservation (approved by the Government)	Maintenance of ecological processes and preservation of genetic diversity.
1990	Forestry Sector Development Project - Environmental Management component	Logging of natural forests banned. Accelerated and National Conservation Reviews carried out (assessment of conservation values of natural forests).
1993	National Environmental Regulations No. 1 (Under the National Environmental Act) (CEA)	Requirement of environmental impact assessment (EIA) for extraction of timber from forests and forest plantations exceeding 5 ha and conversion of forests into non-forest uses exceeding 1 ha.
1997	Five Year Implementation Program of the FSMP	Short- and medium-term development program for the forestry sector.

ISSUES LEADING TO LOGGING BANS IN NATURAL FORESTS

Placing greater emphasis on forest conservation

Prior to the 1970s, the key functions of the Forest Department were to provide for sustainable production of timber and fuelwood and to establish new forest plantations. In 1970, when the MAB program was established, 36 biosphere reserves were set aside as arboreta for Sri Lanka’s different natural forest ecosystems. In 1972, public outcry against logging in the Sinharaja Forest Reserve prompted the Government to appoint a cabinet sub-committee to examine the problem. Subsequently, all commercial timber harvests were halted when the reserve was designated a conservation area in 1977. Since then, the Forest Department has placed greater emphasis on forest conservation.

Over-exploitation and recommendations of the 1986 Forestry Master Plan

The FMP in 1986 over-emphasized the use of natural forests for timber production and paid very little attention to forest resource conservation. Public interest in environmental and forest conservation increased in the mid-1980s as a result of large-scale deforestation during the previous two decades in areas such as the Mahaweli. The earlier forest management approach, which was based on the commercial selection system, was characterized by the removal of all commercial species of over 60 cm dbh at the end of a 20-30 year cutting cycle. This led to a severely degraded stand structure and species composition. In the early 1980s, it became clear that this could not be sustained. In 1998, selective felling in the dry zone forests was suspended pending the compilation of forest inventories and forest management plans. The suspension became a complete ban in 1990 at the time of the overall ban on logging in all natural forests.

Notwithstanding Sri Lanka’s severely depleted natural forests, the FMP recommended harvesting in 119 000 ha (43 percent) of wet zone natural forests and 954 000 ha (65 percent) of dry zone natural forests. As expected, the FMP evoked considerable criticism from environmentalists, academics, NGOs, the general public, and some officials of the Forest Department for not giving adequate attention to environmental and forest conservation considerations.

The Government responded by commissioning an environmental study to evaluate the FMP proposals, with assistance from the World Bank and the World Conservation Union (IUCN), resulting in the following strategies for the conservation of natural forests:

• introduce a moratorium on logging operations in natural forests in the wet zone;
• survey and evaluate the conservation value of natural forests in the wet zone (Accelerated Conservation Review);
• establish a special committee (Conservation Review Committee) appointed by the Minister of Lands, Irrigation and Mahaweli Development to advise the Government on the conservation of natural forests;
• prepare management plans for all of Sri Lanka’s natural forests; and incorporate an environmental management component to the five-year investment program of the FMP to:

- establish an Environmental Management Division in the Forest Department (Forest Conservation Unit);

- implement a National Conservation Review to evaluate the conservation values (biological diversity and hydrological importance) of all the natural forests; and

- identify an optimal protected area network.

In response to the study’s recommendations, the Forest Department designated 13 forests in the wet zone (totalling 24 000 ha) as conservation areas. This was roughly 50 percent of the forests within the zone that had been marked for exploitation under the five-year investment program of the FMP.

The Government also imposed a complete logging ban in all natural forests in 1990 following recommendations of the Conservation Review Committee. This ban is still in place, and there is strong public support to maintain the ban until the depleted forests are rejuvenated.

GOALS AND OBJECTIVES OF IMPOSING THE LOGGING BAN AS A STRATEGY FOR FOREST CONSERVATION

The goals of the logging ban are to:

• prevent further degradation and loss of natural forest cover;
• rehabilitate forests that have been heavily degraded;
• protect and maintain biodiversity;
• maintain environmental and hydrological functions of forests; and
• preserve recreational, aesthetic and cultural values.

Since almost all the natural forests are State-owned, the institutions involved in implementing the logging ban are limited to the Forest Department and the STC, operated under the Ministry of Lands, Irrigation and Mahaweli Development.

The National Environmental Regulations control timber harvests on areas exceeding 5 ha and prevent the conversion of forests exceeding 1 ha to non-forest uses. The main purpose of these regulations is to ensure environmental protection in various development activities. Although the environmental regulations are not directly relevant to the implementation of the logging ban, logging operations in natural forests and forest plantations require an EIA.

The logging ban in natural forests is still in place except along the roadsides in the north where forests can be logged or cleared for security purposes. Permission to clear natural forests has also been granted for development projects subject to the National Environmental Regulations. The Forest Department has a firm commitment to enforce the logging ban. However, illegal cutting in natural forests still occurs on a small scale. The threat of illegal cutting is much greater in forest plantations than in natural forests. The Forest Department had recorded an average of 670 forest offenses per year for illegal cutting in natural forests (about 1 000 cases from plantations) from 1991 to 1995. The volume of timber involved in these illegal cuttings was about 1 130 m³ per year, valued at around US$ 80 000 (SL Rs 5.2 million).

ASSESSMENT OF THE POLICY, ECONOMIC, ENVIRONMENTAL, AND SOCIAL IMPLICATIONS OF THE LOGGING BAN IN NATURAL FORESTS

Policy implications

Strategies to implement sustainable forest management

The Government seeks sustainable management for all its forests by encouraging State agencies, local people, user groups, rural communities, NGOs, the estate sector and local industries to work together. However, natural forests should be managed only by the State agencies in cooperation with local people and communities, possibly assisted by NGOs.

State forest land is being zoned into the following four categories for conservation, multiple-use management, agroforestry and forest plantation development:

• Class I forests preserved to protect biodiversity, soils, and water, and historical, cultural, religious, and aesthetic values, and for research;
• Class II forests for non-extractive uses such as scientific research, protection of watershed and wildlife habitat, regulated nature-based tourism, and controlled collection of dead fuelwood by people residing in the forests;
• Class III forests for sustainable multiple-uses including production of wood (based on State management plans) and NWFPs for communities; and
• Class IV forests consisting of forest plantations and agroforestry systems for wood and non-wood products on State lands.

Management plans are also being formulated in consultation with relevant agencies and stakeholders according to the principles of “bottom-up planning” and transparency to indicate management priorities and operational approaches for managing forest resources. The Protected Area System will include Class I and II forests, covering flora and fauna biodiversity, critical watersheds, and forests with special cultural, religious, historic and aesthetic values. The Protected Area System will be demarcated based on biodiversity surveys, other scientific studies and approved criteria, and managed by the State in co-operation with local people and NGOs.

Protection and production forests

The 1985 forest inventory report identified two categories of natural forests:

• protection forests, on slopes greater than 30 degrees (60 percent) gradient and with elevations over 1 500 m (totalling about 122 000 ha); and
• production forests, classified into seven types based on their productive potential (estimated to total about 852 500 ha).

By 1986, management plans had been prepared for 9 management units of the wet zone natural forests. As specified in the strategies for implementing the National Forest Policy, the Accelerated Conservation Review (ACR) and National Conservation Review (NCR) were carried out by the Forest Department, with the assistance of IUCN/UNDP, from 1990 to 1996. The main objectives of these two reviews were to define a national system of conservation forests (Class I and II forests).

All natural forests exceeding 200 ha were studied except those inaccessible in the north and east of the country. Of 281 forests assessed for watershed characteristics, 85 were identified as extremely important for protection. Out of the 204 forests assessed for biodiversity conservation, minimum sets of 108 and 49 areas were identified for protecting woody plant and endemic woody plant species, respectively. Woody plants and animal diversity were represented in a total of 133 forests. Based of these results, 31 new conservation forests in the wet zone, covering around 61 300 ha, were included in the protected area network. Assessments of conservation forests in the dry zone have not been finalized.

An additional 25 000 ha of montane and sub-montane forests are located above 1 500 m. The natural forests in the Protected Area System extend over nearly 1 million ha, representing 49 percent of Sri Lanka’s total natural forests (Tables 30 and 31), and covering approximately 15 percent of the country’s total land area. According to the IUCN regional review of protected areas in 1992, Sri Lanka has an extensive national protected area network that provides adequate coverage of most major forest habitat types.

The DWLC is responsible for 40 percent of Sri Lanka’s forests designated exclusively for conservation. The Forest Department is responsible for 56 percent of the natural forests, which include both production and conservation areas. Local administrators manage a small area of production forests. Fifty-one percent of the forests are considered production forests subjected to the logging ban (Table 31). The FSMP and the FYIP classified these forests as multiple-use management forests for “sustainable management primarily for the production of wood and non-wood forest products.”

The ban on commercial logging operations in the natural forest will continue until the growing stocks are fully recovered and the forests are again ready for harvesting. The 1986 Environmental Study of the FMP, which recommended a moratorium on logging operations in the wet zone forests in 1989, prescribed a rest period of up to 100 years for the growing stock to recover. The EIA of the Forestry Sector Development Project in 1991 recommended a rest period of at least 10 years for the wet zone forests. Any decision to lift the logging ban would be made only after a complete review of the situation.

Table 30. Sri Lanka’s protected areas administered by the Forest Department and Department of Wildlife Conservation

National designation	No.	Area (ha)
Forest Department
International Biosphere Reserves	2	9 376
National Biosphere Reserves	39	63 384
National Heritage and Wilderness Areas	1	11 187
Conservation Forests	32	76 525
Sub-total	74	160 472
Sub-total Corrected*	74	149 909
Department of Wildlife Conservation
National Parks	12	462 448
Nature Reserves	3	33 372
Strict Natural Reserves	3	31 574
Sanctuaries	52	284 117
Sub-total	71	821 871
Total	145	971 780

Source: FD/IUCN (1997)

* Corrected for International and National Biosphere Reserves that are located in National Heritage and Wilderness Areas and Conservation Forests.

Management agency	Production*	Protection	Total
Forest Department	975.6	174.9**	1 150.5
Department of Wildlife Conservation	0.0	821.9	821.9
Local administration	74.1	0.0	74.1
Total	1 049.7	996.8	2 046.5
Percentage of the total forests	51.3	48.7	100.0

*Currently subjected to the logging ban
**Figure includes natural forests above 1,500 m

No formal policy revision, amendment to the Forest Ordinance, regulation or special legal provision was enacted in imposing the logging ban in 1990. As the Forest Department is the major forest owner, the logging ban could be imposed without legal provisions in the Forest Ordinance. However, the National Environmental Regulation No. 1 of 1993 legally controls the extraction of timber from forests through the EIA procedure. Accordingly, environmental clearance is needed for extraction of timber from any forest exceeding 5 ha. This requirement imposes controls on logging operations in both natural forests and forest plantations.

On the whole, the logging ban has been implemented effectively throughout the country, except where forests had to be cleared for security reasons and development projects. Nonetheless, illegal felling of trees and encroachments in State forests are taking place regularly and the Forest Department and DWLC officers are fully involved in curbing such activities. To date, law enforcement remains a primary preoccupation of forest officers.

Management strategies for multiple-use production forests

The National Forest Policy emphasizes the allocation of natural forests firstly for conservation and secondly for regulated multiple-use production forestry. However, the FSMP recommends a continuation of the ban on commercial logging operations in the natural forests until management plans are prepared with the active participation of local communities that should derive benefits from the multiple-use forests.

Economic implications

Demand and supply of wood before the logging ban

In the mid-1980s, Sri Lanka was virtually self sufficient in industrial wood and fuelwood. Over 90 percent of the demand was for fuelwood, of which 85 percent was consumed by households and 15 percent by industry. Industrial wood represented only about 10 percent of Sri Lanka’s total wood demand. Exports were negligible. Approximately 35 000 m³ of sawnwood were imported annually. According to the wood demand and market study conducted for the 1986 FMP, the demand for industrial logs was 980 000 m³ with an estimated annual increase of 14 000 m³ (Table 32).

Table 32. Sri Lanka’s wood demand, 1985 (thousand m³)

Assortment	Wood demand
Logs
Sawlogs, sleeper logs	385
Peeler logs	80
Transmission poles	5
Coconut logs for rafters	60
Total logs	980
Fuelwood*
Household	11 500
Industry	1 610
Total fuelwood	13 110
Total wood demand	14 090

Source: Ministry of Lands and Land Development, Forestry Master Plan (1986)

* 0.7 tons fuelwood = 1 m³ fuelwood

The Ceylon Plywood Corporation’s (CPC) two mills (Kosgama and Gintota) are Sri Lanka’s only producers of plywood and particleboard. CPC was the country’s major wood processing enterprise. The total annual capacity of its two mills was around 35 000 m³ per year. During the 1980s, CPC utilized only about 50 percent of the its capacity due to log shortages. From 1984 to 1986, CPC produced around 19 000 m³ of plywood annually.

About 83 000 m³ of plywood were imported each year during the mid-1980s, primarily from India, Southeast Asian countries and the former Soviet Union. Import duties were 60 percent. The Kosgama Complex was the only producer of particleboard in Sri Lanka during the 1980s, producing around 3 000-3 500 m³ annually to meet the local demand. Very small quantities of particleboard were imported. The import duty of particleboard in the 1980s was 35 percent.

In 1984, fuelwood represented 71 percent of Sri Lanka’s total energy supply. Annual fuelwood and biomass fuel use in 1984/1985 was 7.9 million metric tons, 85 percent of which was domestically consumed, primarily for cooking. Consumption of fuelwood for industrial use was around 1.1 million metric tons per year (15 percent of the total). The tea industry consumed 33 percent of the total industrial fuelwood supply. The main types of fuelwood used in the domestic sector were rubberwood (28 percent), coconut wood (24 percent), wood from natural forests (23 percent), and wood from homegardens (11 percent). The main types of fuelwood in the industrial sector were rubberwood (49 percent) and wood from natural forests (38 percent).

The log supply from natural forests in 1985 was estimated to be around 425 000 m³, the bulk of which came from wet zone natural forests. Industrial logs from natural forests made up approximately 44 percent of the total industrial log supply. Non-forest wood resources from homegardens and rubber, coconut and palmyrah plantations supplied approximately 455 000 m³ (47 percent of the total supply). Forest plantations supplied only 80 000 m³ of Sri Lanka’s industrial logs in 1985, or 8.3 percent of the total supply (Table 33). The harvest plan for 1986 to 2000 estimated the supply of logs from natural forests would be about 320 000 to 350 000 m³ per year, or 21 percent of the total supply. The FMP attributed this reduction to minimizing over-harvesting in the natural forests. It was expected that the availability of logs from forest plantations, non-forest resources, rubber and coconut/palmyrah plantations would be increased to compensate for the reduced log supply from the natural forests. Balance II in Table 33 indicates a slight shortage in the industrial log supply during the 1986-1990 period, which was predicted to increase after 1990.

The 1986 management plans for the 9 units in the wet zone had prescribed a 30-year harvest cycle with intermediate improvement cutting 15 years after selective cutting. The average yield from selective cutting was 30 m³/ha (maximum 40 m³/ha) of log volume and the average yield from intermediate cutting was 15 m³/ha. After 1986, the STC harvested an average of 922 ha of natural forests in the wet zone each year. In addition, the CPC was permitted to selectively harvest 11 000 ha of the Kanneliya-Dediyagala-Nakiyadeniya natural forest complex that yielded an average of 30 000-40 000 m³ per year from 1987 to 1988. The felling operations in wet zone forests continued until the logging ban was introduced in 1990.

Table 33. Availability and demand for Sri Lanka’s industrial logs, 1985-2000 (thousand m³/year)*

Source		1985	1986-90	1991-95	1996-2000
Availability
	Natural forests	425	350	335	320
	Existing forest plantations	80	135	130	178
	Homegardens and other non-forest	260	267	287	350
	Rubber plantations	120	591	514	300
	Coconut/palmyrah plantations	75	361	326	338
Total log availability		960	1 704	1 592	1 486
Demand		980	1 050	1 230	1 390
Balance I		-20	654	362	96
Rubber and coconut logs not accepted by markets			674	477	224
Balance II		-20	-20	-115	-128

Source: Ministry of Lands and Land Development, Forestry Master Plan (1986)

*Estimated by the Forestry Master Plan of 1986 prior to the decision to impose the logging ban.

However, the logging operations in the forests were replaced by various development activities such as irrigation and settlement schemes (i.e. the Mahaweli Development Project) carried out by the STC. Large volumes of timber were harvested from the natural forests in the Mahaweli Development areas by the STC (e.g. 53 300 m³ in 1980 and 55 000 m³ in 1981). After 1986, approximately 90 000 ha of dry zone natural forests were cleared to make way for the Mahaweli System C and Padaviya Developments. About 130 000 ha of natural forests in the dry zone were logged for the Mahaweli System B Development. Some forests in the Mahaweli Development Scheme were logged until about 1995, even after the logging ban had been implemented.

The STC’s timber production from 1986 to 1995 is shown in Figure 21 and Table 34. Since 1985, the STC has halted logging operations in the Northern and Eastern districts due to the ethnic disturbances in those areas. The STC’s logging operations in the Galle, Matara, Ampara, and Anuradapura districts were also hampered during 1988 and 1990 due to ethnic unrest. The STC timber harvest from the natural forests during 1985-1995 is shown in Figure 22.

Figure 21. STC’s timber production in Sri Lanka, 1986 - 1995

Figure 22. Sri Lanka’s timber extracted by STC from natural forests, 1985 - 1995

Table 34. State Timber Corporation’s timber production in Sri Lanka, 1986-1995

Item	Before the logging ban					After the logging ban
	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995
Logs (m3)	99 358	109 796	54 710	42 237	54 967	27 804	38 797	46 797	45 678	56 467
Peeler Logs (m3)	5 584	4 283	1 210	171	-	115	33	-	-	290
Sawn timber (m3)	19 384	24 388	15 247	8 766	9 862	5 447	5 038	4 822	3 996	5 705
Fire wood (m3)	529 212	426 452	318 210	273 267	129 868	56 232	75 164	90 909	130 193	191 436
Pulp wood (m3)	-	10 686	22 242	7 777	5 384	5 932	648	-	-	-
Sleepers (Nos.)	138 316	65 661	64 874	72 247	31 688	18 171	59 779	154 887	83 849	54 035
Tree poles (Nos.)	19 827	16 793	5 045	3 744	10 323	11 709	26 929	4 613	10 554	20 729
Poles (Nos.)	484 213	520 070	393 974	412 874	113 308	70 354	146 570	22 017	221 173	206 731
Charcoal (m. ton)	3 045	1 514	991	1 142	683	469	621	119	213	153

Source: State Timber Corporation, Annual Reports (1986-95)

Roundwood logs

Sri Lanka’s total industrial roundwood consumption in 1993 was estimated to be 1.3 million m³. Ninety percent was used for sawnwood production (Forestry Planning Unit 1994). Wood consumption depended almost entirely on domestic log supply, the majority of which originated from non-forest lands. Imports totalled only approximately 7 000 m³ (Table 35). The relative importance of non-forest lands as a source of timber has increased substantially (Table 36).

Table 35. Estimated supply sources for logs in Sri Lanka, 1993

Source	Volume (thousand m3)	Percentage of total
Homegardens	500	39.2
Rubber plantations	230	18.0
Clearing of natural forests	5	0.5
Palms	150	11.8
Tea estates	50	3.9
Forest plantations	47	3.7
Unrecorded (incl. illegal)*	286	22.4
Imports	7	0.5
Total	1 275	100.0

Source: Ministry of Forestry, Irrigation and Mahaweli Development (1994a)

* An undetermined part of the unrecorded supply includes illegal cuttings from natural forests and forest plantations.

Supply	1985	1993
Natural forests	425 (44.3%)	5 (0.4%)
Forest plantations	80 (8.3%)	47 (3.7%)
Homegardens and other non-forest sources	260 (27.0%)	550 (43.4%)
Rubber plantations	120 (12.5%)	230 (18.1%)
Coconut/palmyrah plantations	75 (7.8%)	150 (11.8%)
Unrecorded (including illegal supplies)	-	286 (22.6%)
Total domestic log supply	960 (100%)	1 268 (100%)

Note: Brackets show percentage of total.

Sawnwood

Total sawnwood consumption in 1993, including railway sleepers, was 544 000 m³. Being almost self sufficient in sawnwood, Sri Lanka imports only about 29 000 m³, or 5 percent of its supplies. Total sawnwood production in 1993 was 515 000 m³, including approximately 14 800 m³ of railway sleepers.

Construction is the major end use for sawnwood in Sri Lanka, consuming approximately 75 percent of production. The furniture industry (15 percent) and other wood-based industries (10 percent) make up the balance. The sawnwood demand is projected to grow by about 12 600 m³ per year, or an average growth rate of 2 percent.

Sri Lanka’s increasing demand for sawnwood is expected to be met by increasing domestic production, relying mainly on the supply of logs from non-forest lands. In 1997, 90 percent of Sri Lanka’s total sawnwood consumption were produced domestically and approximately 10 percent were imported. The FSMP indicated that domestic forest industries are very dependent on supplies of wood from sources other than natural forests.

Wood-based panels

Plywood consumption in 1993 totalled approximately 28 000 m³. About 5 000 m³ (18 percent) were produced locally and 23 000 m³ (82 percent) were imported. Fiberboard consumption in 1993 was about 2 500 m³, and that of particleboard was about 1 500 m³, all of which were imported. Approximately 20 000 m³ of roundwood logs were consumed annually by plywood industries, most of which was rubberwood. The consumption of plywood is expected to grow at a rate of 2.7 percent per year.

Impact on the STC supply of timber

The STC contribution to Sri Lanka’s total timber supply from 1986 to 1995 illustrates the impact of the logging ban on STC and the shift in its share of the domestic timber market (Table 37). Prior to 1985, the STC supplies were much higher due to the large logging operations in the Mahaweli Development areas, which provided approximately 54 000 m³ of timber per year. The average annual STC timber supply between 1980 and 1985 was around 210 000 m³, representing over 24 percent of the domestic timber demand. After the suspension of logging operations in the dry zone in 1988 and the imposition of the logging ban in 1990, the STC’s annual timber supply declined markedly to between 42 000 and 73 000 m³. The STC’s contribution to the domestic timber supply fell below 5 percent.

Table 37. STC’s contribution to Sri Lanka’s total timber supply, 1986-1995

Year	Total timber consumption (thousand m3)	Supply by STC (thousand m3)	STC’s contribution to the total consumption (percent)
1986	1 000	140	14.0
1987	1 020	130	12.7
1988	1 050	85	8.1
1989	1 100	70	6.4
1990	1 150	80	7.0
1991	1 200	42	3.5
1992	1 250	54	4.3
1993	1 300	62	4.8
1994	1 320	60	4.5
1995	1 340	73	5.5

Source: State Timber Corporation, Annual Reports (1986-1995)

Prior to 1991, the STC only supplied timber extracted from State forests, but the logging ban drastically reduced its log supplies. In fact, the STC’s total roundwood production volume has declined by about 25 percent. Since 1990, the main source of STC timber is from State forest plantations, with a small amount (7-8 percent) derived from private sources. Small quantities of timber also come from natural forests cut for security purposes and small-scale development schemes. There has been no decline in the production of sleepers and transmission poles as these are produced mainly from forest plantation supplies.

Import, export and price trends

Logs

About 6,700 m³ of logs valued at SL Rs 73.8 million (US$1 = SL Rs 49.5 in 1993) were imported in 1993, and imports have increased only slightly since. During the 1980s, there were no imports at all.

The increasing scarcity of logs has resulted in substantial price increases for some species (Table 38). The largest price increase was for the super luxury class grade, which includes teak (Tectona grandis), ebony (Diospyros ebenum), bedun (Pericopsis mooniana), and calamander (Diospyros quaesita). All species in this class, except teak, originate from the natural forests. The average price increase of super luxury class logs from 1985 to 1997 was about 35 percent annually, and 50 percent just before and after the imposition of the logging ban (1988 to 1992). The average annual price increase of luxury class logs of species such as satin (Chloroxylon swietenia), halmilla (Berrya cordifolia) and milla (Vitex pinnata) was 25 percent from 1988 to 1992, compared to the average annual increase of 17 percent during 1985 and 1997. Plantation species included in this class are narrow-leaved and broad-leaved mahogany. The average annual price increase of other classes (i.e. special class, classes I, II and III) from 1985 to 1997 was about 20 percent, with no significant increase attributable to the logging ban.

Table 38. Average prices for grade “A” logs at depot sold by STC in Sri Lanka

Classification of Logs	Price per cm3 (SL Rs)					Average annual price increase, 1985-97 (percent)	Average annual price increase, 1988-92 (percent)
	1985	1988	1992	1993	1997
Super luxury class	5.70	10.00	30.00	30.00	31.80	35	50
Luxury class	5.60	5.60	11.30	16.60	17.70	17	25
Special class	3.40	5.20	9.60	11.40	12.30	21	21
Class I	1.90	2.90	5.20	6.40	6.80	21	20
Class II	1.40	2.10	3.80	4.60	4.90	21	20
Class III	1.10	1.20	2.20	2.60	2.80	13	21
US$1 = SL Rs	27.40	33.00	46.00	49.50	61.30

Source: State Timber Corporation

Sri Lanka is a net importer of sawnwood (Table 39). Import volume has fluctuated widely over the years and annual imports between 1985 and 1995 ranged from 21 000 to 38 000 m³. In 1997, import volume reached 62 300 m³. Statistics do not indicate a significant increase in imports as a result of the logging ban. However, data on imports after 1997 are not yet available and it is believed imports have increased substantially after the lifting of import duties in 1997.

Table 39. Sri Lanka’s sawnwood imports and exports, 1985-1997

Import/Export		1985	1988	1990	1991	1993	1995	1997
Imports (m3)		38 000	34 800	27 100	21 500	28 700	27 500	62 300
Exports (m3)		150	500	600	1 300	150	290	20
Net trade (m3)		- 7 850	- 4 300	- 6 400	- 0 200	- 8 550	- 7 210	- 2 280
Imports:
	US$ million	10.3	5.7	4.2	3.9	4.3	5.9	5.3
	SL Rs million	282	188	169	165	215	317	322

Source: Department of Customs, External Trade Statistics (1985-1997)

Imports of sawnwood did not increase immediately after the logging ban, although sales of imported sawnwood by the STC more than doubled between 1989 and 1991 (Table 40). This was probably due to the immediate shortage of timber from natural forests. The STC imported an average of about 10 to 20 percent of Sri Lanka’s total sawnwood from 1986 to 1995.

The increased demand and reduced supply have increased the price of luxury and special class sawnwood by an average of 15 percent per year, or more than 100 percent since 1985. Prices for Class I, II and III sawnwood have increased since 1985 by an average of 12 percent, 11 percent, and 15 percent per year, respectively. Sustained strong demand for sawnwood is expected to continue driving up prices.

Table 40. State Timber Corporation sale of imported timber in Sri Lanka, 1986-1995

Year	Volume (m3)	Annual increase (percent)
1986	3 170	- 0.9
1987	3 830	20.8
1988	3 020	-21.1
1989	4 070	34.7
1990	5 210	28.0
1991	10 100	93.9
1992	8 110	-19.7
1993	2 840	-65.0
1994	2 620	-7.7
1995	4 070	55.3

Source: State Timber Corporation, Annual Reports (1986-1995)

Sri Lanka is a net importer of wood-based panels, primarily from Malaysia, Indonesia and India. Plywood imports increased from 6 700 m³ in 1987 to 30 000 m³ in 1995. The increase of plywood imports immediately after the logging ban was 9 800 m³, a 60 percent increase from the previous year.

In the 1980s, wood-based panels were rather expensive in Sri Lanka, especially when compared to sawnwood prices. During the last 10 years, the prices of the most common sawnwood species have increased rapidly (about 15 percent annually), making plywood more competitive. At present, the prices of domestic plywood are slightly lower than the prices of imported plywood. The price of imported plywood (12 mm) is about SL Rs 55 000/m³ (US$770/m³).

Demand and supply projections

Wood requirements of the Sri Lanka forestry industry will depend on the future demand for various forest products and development of the domestic forestry industry. According to projections made for the FSMP, the total demand for industrial roundwood is expected to reach about 2 million m³ in the year 2020, compared with 1.3 million m³ in 1993.

Under management programs advocated by the FSMP, the increasing demand for sawnwood is to be met mainly from domestic sources, with imports representing only about 5 percent of the total. Production would increase from about 514 000 m³ in 1993 to about 880 000 m³ by 2020. Raw materials are expected to be derived primarily from non-forest resources. Sawnwood consumption, production and imports, under current trends and FSMP scenarios, are shown in Table 41.

Table 41. Scenarios for consumption, production and imports of sawnwood in Sri Lanka (thousand m³)

Scenarios		1995	2000	2005	2010	2015	2020
Current trends
	Consumption	567	626	688	753	820	885
	Production	539	563	585	640	646	646
	Imports	28	63	103	113	174	239
FSMP
	Consumption	567	626	688	753	820	885
	Production	539	595	654	730	804	876
	Imports	28	31	34	23	16	9

Source: Ministry of Agriculture, Lands and Forestry, Forestry Sector Master Plan (1995)

Alternative wood supplies

The role of non-forest wood resources

Homegardens, rubber and coconut plantations supplied over 70 percent of the wood in 1993. Only about 4 percent came from forest plantations. In 1995, homegardens contributed around 49 percent of the total sawlog supply derived from non-forest resources (40 percent of the total log supplies) and this proportion is expected to reach about 54 percent by 2020. Rubber plantations are expected to contribute an average 21.5 percent and coconut plantations an average of 15.2 percent between 1995 and 2020.

Although non-forest lands will continue to play a very important role in Sri Lanka’s future wood supplies (Table 42), the share of wood coming from non-forest lands will likely decline as total wood demand increases and supplies from non-forest lands remain relatively constant. The additional demand may potentially be met by sourcing another 250,000 m³ from plantations and from natural forests that are cleared for security purposes or development.

Table 42. Potential contribution of non-forest lands to national sawlog supply in Sri Lanka, 1995-2020

Year	Demand (thousand m3)	Supply from non-forest lands (thousand m3)
1995	1 357	1 119
2000	1 444	1 178
2005	1 576	1 248
2010	1 653	1 279
2015	1 763	1 267
2020	1 868	1 286

The role of forest plantations

The Forest Department started managing forest plantations in the latter part of the nineteenth century, but most of the planting was done only after 1950. By 1998, the Forest Department managed 92 340 ha of forest plantations. The private sector manages another 5 000 ha. The most common species planted is teak (Tectona grandis), followed by pine (Pinus caribaea and P. patula), eucalyptus (Eucalyptus grandis, E. microcoris, E. robusta, E. globulus) and mahogany (Swietenia macrophylla) (Table 43). In addition, Acacia auriculiformis, Eucalyptus tereticornis and E. camaldulensis are planted for fuelwood. Smaller areas of albizzia, Acacia mangium and indigenous species such as kohomba (Azadirachta indica), halmilla (Berrya cordifolia) and godakirilla (Holopelea integrifolia) have also been planted for timber.

Table 43. Forest plantations established by Sri Lanka’s Forest Department

Species	Area (ha)
Teak	31 700
Pine	16 440
Eucalyptus (for timber)	9 180
Eucalyptus and acacia (for firewood)	19 100
Mahogany	3 700
Mixed species	12 220
Total	92 340

Source: Forest Department

According to the FSMP, approximately 50 000 m³ of wood were to be harvested from the Forest Department’s forest plantations in 1995. This volume was expected to increase to about 150 000 m³ by 2000 and to 260 000 m³ by 2005. However, the Forest Department’s management plans for teak, eucalyptus, pine and mahogany plantations considered these estimates too high. Instead, annual timber production from plantations is expected to be only around 90 000 m³ (Table 44). Insufficient management and inappropriate species selection in the past, as well as encroachment, fire and elephant damage have reduced the quality of forest plantations.

Table 44. Projected timber production from forest plantations in Sri Lanka, 1999-2005 (m³)

Year	Teak	Eucalyptus	Pinus	Mahogany	Thinning	Total
1999	24 220	32 540	8 050	4 870	22 500	92 180
2000	32 850	25 150	12 000	5 280	19 500	94 780
2001	34 420	27 930	10 150	6 950	21 000	100 450
2002	25 650	26 180	9 720	5 600	23 000	90 150
2003	28 370	25 340	8 620	4 730	20 500	87 560
2004	27 500	16 200	9 300	5 480	21 500	79 980
2005	28 200	15 600	9 800	6 200	22 000	81 800

Source: Forest Department

Impact on the forest industry

The number of registered private forest enterprises increased from 645 in 1983 to 4 500 in 1995 (Table 45), even though timber supplies from State forests declined. The enterprises rely mainly on timber from private non-forest sources. This includes sawmills, timber depots, carpentry shops, furniture shops and firewood depots. There were 4 000 sawmills, most of which were very small, and 380 major industrial sawmills.

While the number of private sector sawmills has increased, the number of State-owned enter-prises has declined. From 1985 to 1992, the number of sawmills operated by the STC declined from 16 to 8, producing only 3.8 percent of Sri Lanka’s sawnwood. The STC attributed the closure of its three large mills at Minneriya, Madawachchiya and Thimbolketiya directly to the supply shortage. The CPC also closed down their Kosgama mill after the imposition of the logging ban in the wet zone forests when raw materials became scarce. The other CPC plywood factory was sold to the private sector, and is currently utilizing mainly rubberwood.

Table 45. Number of private forest enterprises registered with Sri Lanka’s Forest Department, 1983-1997

Year	No. of enterprises	Annual increase (percent)
1983	645	16.5
1985	754	8.5
1987	1 391	42.2
1989	1 666	9.9
1991	1 786	3.6
1993	2 578	22.2
1995	4 500	37.3
1997	6 190	18.8

Source: Forest Department, Administration Reports of the Conservator of Forests (1983-1997)

Impact on Government revenue

The main source of Government revenue from the forestry sector is from royalties or stumpage and other taxes paid by the STC. Prior to 1990, the State forests were the only source of STC timber supply. Since 1991, about 7 to 8 percent of the STC timber sold were derived from private sources. Until 1994, royalties paid to the treasury by the STC were 10 percent of the lowest unit sale value of the logs sold at a depot. In 1995, this royalty was converted to a payment of stumpage, calculated at 40 percent of the sale value of the logs sold at a depot. The STC also pays a Business Turnover Tax (BTT), Defense Levy, Income Tax and withholding tax. Government revenue from the STC increased considerably from 1986 to 1997 (Table 46). Royalty/stumpage receipts are direct Government revenues, while other taxes are related to the sale of timber based on the profits earned.

Table 46. Sri Lanka’s government revenues from the STC (thousand US$)

Year	Royalty/stumpage	Total taxes	Total revenue	US$1=SL Rs
1986	743	2 381	3 124	28.5
1987	663	2 221	2 884	30.8
1988	420	775	1 195	33.0
1989	334	947	1 281	40.0
1990	370	978	1 348	40.2
1991	217	1 074	1 291	41.6
1992	262	1 263	1 525	46.0
1993	272	1 825	2 097	49.6
1994	245	4 317	4 562	50.0
1995	1 105	5 093	6 198	54.0
1996	1 433	4 346	5 779	56.7
1997	1 957	6 135	8 092	61.3

Source: State Timber Corporation (1986-1994: Royalty; 1995-1997: Stumpage)

Environmental implications

Impact on forest protection

According to Forest Department records, incidences of illegal cuttings increased after the imposition of the logging ban. Illegal harvesting was more prominent in forest plantations than in natural forests, however. Some analysts believe the trend of increasing illegal harvesting can be attributed to socio-economic issues such as poverty, unemployment and changes in the political environment that are not related to the logging ban.

The average number of forest offenses in the natural forests from 1985 to 1989 and 1990 to 1994 was 478 and 649 per year, respectively (Table 47). However, the volume of timber involved in these offenses dropped by 23 percent from 1990 to 1994. The average number of illicit cuttings in forest plantations from 1985 to 1989 and 1990 to 1994 was 825 and 1360, respectively. Teak plantations are the most vulnerable to illegal cuttings because of their high value and easy accessibility. The recorded average rate of encroachments in natural forests between 1985 and 1989 was about 340 ha per year. After the imposition of the logging ban, it declined to 300 ha per year.

Table 47. Forest offenses recorded in Sri Lanka’s natural forests and plantations, 1985-1994

Type of offense	1985	1986	1987	1988	1989	1990	1991	1992	1993	1994
Natural forests
Illegal harvests	598	576	445	446	328	578	746	684	639	598
Encroachments	720	1 080	1 223	906	1 089	1 306	1 478	1 002	898	638
Forest plantations
Illegal harvests	633	680	837	823	1 156	1 014	1 156	1 505	1 558	1 565

Source: Forest Department

The forest types protected under the logging ban

The current logging ban covers 1 049 700 ha of production (multiple-use management) natural forests, which represents approximately 51.3 percent of all natural forests. The forest types include 18 percent of lowland rainforests, 27 percent of the moist monsoon forests, 65 percent of the dry monsoon forests and 54 percent of the sparse forests. Other forest types - montane, sub-montane, riverine and mangrove forests - were all previously included in protected areas and were therefore unaffected by the ban.

The lowland rainforest that is located below 1 000 m in the wet zone is the most important forest type from a biodiversity and hydrological perspective. These forests have very high species diversity and are located in the upper catchments of several important rivers. In comparison, the moist monsoon forests located below 1 000 m in the intermediate zone and the dry monsoon forests in the dry zone are relatively low in biological diversity and hydrological importance. The sparse and open forests are highly degraded as a result of past over-logging and other adverse human interference. All these forests need a long period of rest to replenish the growing stock before any logging operations can resume.

Impact on watershed conservation

In 1995, the Forest Department, in collaboration with IUCN, assessed the importance of the natural forests for soil conservation and hydrology in 281 tracts that are each over 200 ha in area. The study found that the natural forests in the wet and intermediate zones are more important for soil conservation than the ones in the dry zone. Similarly, the study found that over 50 percent of the forests in the wet and intermediate zones are critical for flood control, compared to only 23 percent in the dry zone. This analysis illustrates the relative importance of the natural forests for soil conservation and hydrology in different climatic regions.

Impact on biodiversity conservation

Over-exploitation of the natural forests for timber production and population pressure are the main causes of deforestation and forest degradation in Sri Lanka. The loss of natural forest cover has been most pronounced in the wet and intermediate zones, producing extremely fragmented forest remnants. The impact of loss and degradation of forests on species diversity cannot be quantified because little or no baseline information exists for many areas. However, some forest species may already have been lost. Of 58 dipterocarp species originally found in Sri Lanka, one is thought to have become extinct. Data also indicate that at least 11 percent of the native snakes have not been observed since at least 1950. Thirteen of the 14 possibly extinct species are endemic forest species. Threatened valuable species include satin wood (Chloroxylon swietenia), ebony (Diospyros ebenum), calamander (Diospyros quaesita) and nadun (Pericopsis mooniana). Madara (Cleistanthus collinus) may already be extinct.

Medicinal and ornamental species such as orchids may also be over-exploited. Of the 170 species of orchids in Sri Lanka, 13 are likely to become extinct. In addition, 74 of the 200 species of Sri Lanka’s medicinal plants are threatened. Only two decades ago, most of these plants were abundant, indicating that if present trends continue, another 20 to 30 species will become threatened over the next two decades.

Over-harvesting has also affected the animal population. The elephant population has declined from more than 10 000 at the beginning of this century to less than 3 000 in 1993. The remaining elephants are now restricted to the moist monsoon, dry monsoon and sparse forests in the dry and intermediate zones. Their natural habitats are increasingly being fragmented, disrupting movements and dispersal patterns.

The logging ban protects the biodiversity in about 51 percent of various forest types. Studies have shown that regeneration of threatened, endemic woody plant species is poor in selectively logged forests. Similar observations have been made for endemic small mammals. The National Conservation Review, however, suggests that some logged-over areas can regenerate well and possess ample biodiversity. The management of forests for the conservation of biodiversity is a key national forest policy objective. Hence, after complete replenishment of growing stocks in forests affected by the logging ban, sustainable forest management should be practiced in a manner that prevent species extinction and further biodiversity erosion.

Social implications

About 70 percent of Sri Lanka’s 18.3 million people still live in rural areas, and 30 percent of the rural people live near the forests. They depend at least partly on forest resources. It is estimated that about 4 million people in Sri Lanka derive some benefit from NWFPs. The value of NWFPs from the lowland rainforests have been estimated to be SL Rs 15 000/ha/year (US$ 210/ha/year).

The social implications of the logging ban have been evaluated in this study mainly in four key areas:

• impact on employment and income generation;
• impact on forest dependency;
• perception of village communities including religions and cultural values; and
• impact on scenic beauty and public recreation values

Impact on employment and income generation

Before 1990, the STC operated 16 sawmills and 35 timber sales depots. In 1992/1993 the STC closed down 8 sawmills and 16 timber sales depots mainly because of timber shortages, and partially due to the reduction of Mahaweli forest clearing areas and security problems in the north and east.

The number of STC employees declined from 2,990 in 1990 to 1,720 in 1996. Most of them were mid- to lower-level workers who were involved in sawmill operations, timber sale depots and logging. About 820 employees left voluntarily and received incentive packages that cost the STC around SL Rs 42 million (US$ 850 000).

In 1994, the FSMP estimated that 40 000 people were employed either full- or part-time in the sawmilling industry, out of which 10 000 to 12 000 were in the private sector. Since 1994, the number of enterprises has increased 25 percent annually. The total employment in forest industries, including sawmills, in 1997 was estimated to be around 60 000 workers. The private sector mainly uses raw materials from non-forest sources. Hence, the impact of the logging ban on them is not as significant as with STC employees. The private sector jobs are mainly labor and field supervisory levels.

Impact on forest dependency

The ban has no impact on the extraction of NWFPs by village communities, and thus, their dependency on natural forests has not been affected except where people lost their jobs in former logging operations. The present legislation provides for collection of fuelwood and NWFPs by village communities, and this practice continues in natural forests except in some protected areas.

Impact on the perceptions of people

Sri Lankans have a strong tradition of conservation with close religious, cultural and spiritual links to natural forests. Buddhist philosophy has had a great influence on the conservation of forests and wildlife in the country. The Buddhist monks use small blocks of natural forests - forest hermitage areas or aranya - as places for meditation. A practice that started before 1500, it has become a good method of forest protection. Even now, no illegal felling takes place in forest hermitage areas. At present, forest hermitages exist in many natural forests and many villagers do not support logging of natural forests for this reason.

Impact on public recreation

Both local and foreign tourists visit many forests, especially the protected areas, for recreation purposes. There are 12 national parks managed by the DWLC, one World Heritage Site (National Heritage and Wilderness Area) and 2 conservation forests managed by the Forest Department for recreation and conservation. The number of visitors to 5 national parks managed by the DWLC in 1997 was around 300 000 and the revenue generated was SL Rs 40 million (US$ 700 000). Visitor arrivals to the Forest Department’s protected areas were recorded at 45 000, while the revenue generated was around SL Rs 1 million (US$ 17 000). Some forests within the protected area system have great potential for nature-based tourism, and management plans are being prepared for this purpose.

CONDITIONS NECESSARY FOR SUCCESSFUL IMPLEMENTATION OF THE LOGGING BAN AS A STRATEGY FOR ACHIEVING FOREST CONSERVATION

Main reasons for the success of the logging ban

• Monopoly of the STC for extracting timber from State forests:

The Forest Department releases the forests for extraction only to the STC. No other private or State institution is authorized to extract timber from State forests. Any other form of tree felling is considered illegal. This monopoly facilitates effective implementation of the logging ban even without a written policy or special legislation.

• Contribution from non-forest lands:

Non-forest wood resources are a major source of timber. Since the bulk of timber comes from sources outside the State forests, the pressure on natural forests and the impact on forest industries are significantly less.

• Commitment of the Government:

The decisions regarding the logging ban were taken by the Government as a result of strong environmental lobbying against logging in the natural forests. Against this background, the Government has had a firm commitment for effective implementation of the logging ban.

• Lack of policy on the logging ban:

The Ministry of Lands, Irrigation and Mahaweli Development in 1990 gave a directive to the Forest Department to implement the logging ban without any policy statements or amendments to the existing forest policy. A formal policy statement would have provided better guidance for effective administration.

• Clearing of forests in the Mahaweli Development area:

Some of the natural forests in this area were cleared for development even after the logging ban was implemented and continued until about 1996.

• Clearing of forests for security reasons:

Clearance of natural forests along roads in the northern and eastern parts of the country has been allowed for national security reasons in spite of the logging ban. Logging by STC, with prior approval of the Forest Department, has continued as requested by the defense institutions.

• Illegal felling of trees in the natural forests:

Illegal cutting continues at a considerable rate. The threat of illegal cutting is even greater in forest plantations due to easy access and higher valued species (teak and mahogany). Enforcement is not effective due to the lack of financial and human resources, lack of motivation, etc. The magnitude of illegal fellings may be greater than recorded.

Based on the Sri Lankan experience, the following aspects have been identified as necessary conditions for the successful implementation of the logging ban.

• Development of appropriate policy, legislative and institutional frameworks:

The development of appropriate policies with clear and functional definitions of conservation goals followed by the development of suitable legislation and institutional arrangements are crucial. Furthermore, political will, Government commitment and support are necessary for effective implementation of the logging ban.

• Development of alternative wood resources:

Non-forest wood resources along with forest plantations can provide a viable alternative to timber from natural forests. Incentive schemes are necessary to encourage the private sector to establish forest plantations and plant trees in homegardens and agroforestry systems.

• Demarcation of forest boundaries:

Survey and demarcation of forest boundaries is essential to prevent illegal felling and encroachment. Programs have been prepared to survey and demarcate the large number of proposed forest reserves and other State forests, between 2000 and 2010, with financial assistance from the ADB.

• Relaxation of the private timber transport permit system:

Sri Lanka’s private timber transport permit system has been identified as a disincentive for private sector involvement in homegardens, agroforestry systems and other non-forest tree resources. Even though permits have been recognized as important to the domestic timber supply, relaxation of the present system to promote private sector and community involvement in tree planting and forestry development has been proposed.

• Adequate resources for forest protection and law enforcement:

If the natural forests are to be protected against illegal felling and encroachment, the number of cadres from the DWLC and the Forest Department has to be increased. Training should be provided to the field staff to strengthen their law enforcement capabilities.

• Political and public awareness and forest extension:

Decision makers need to be familiar with the benefits of conservation. The current extension and awareness programs implemented by the Forest Department, DWLC, and NGOs, should be strengthened and expanded to cover all levels of the target groups.

• Community and participatory forest management:

The National Forest Policy recognizes that the State alone cannot protect and manage the forests effectively. People’s participation in forestry development and management should be promoted as one of the main strategies for forest conservation.

• Improvement of the efficiency of forest industries:

Old and inefficient equipment that has not been designed for small-dimension logs, and inadequate management and labor skills, are major problems in the forest industry. This leads to low recovery rates and poor overall productivity, particularly in the sawmill sector. The present average recovery rate has been estimated to be around 40 percent. Raising efficiency rates of wood-processing technologies is necessary to reduce waste.

• Increase the range of timber species utilization:

Forest products and timber utilization research needs to be strengthened to carry out more coordinated, product-oriented research and to disseminate information with greater emphasis on lesser-known timber species.

• Development of a monitoring system for sustainable forest management:

Development of criteria and indicators for sustainable forest management is an important aspect. Although there have been several international initiatives on the development of criteria and indicators, Sri Lanka is still in the initial stages of this process.

The logging ban in the natural forests, which was imposed in 1990, can be generally considered as a success in achieving forest conservation in Sri Lanka. The key factors that contributed to the success of the logging ban are the monopoly of the STC in extracting timber from State forests, commitment of the Government, and the large percentage of wood supplied by the non-forest sector. However, the logging ban has not been completely successful. Some of the ban’s major obstacles include the lack of supportive policies, continued timber removals under the Mahaweli Development scheme, and illegal timber removals in other natural forests.

Several conditions that can help a logging ban succeed have been identified. They include:

• strong Government commitment and support;
• development of appropriate policy, legislative, and institutional frameworks;
• development of alternative wood resources;
• demarcation of natural forest boundaries;
• relaxation of the private timber transport permits system;
• adequate resources for forest protection and law enforcement;
• extension and public awareness;
• community and participatory forest management;
• improvement of the efficiency of forest industries;
• increased utilization of lesson-known species; and
• development of a monitoring system for sustainable forest management.

POLICY OPTIONS

The following two policy options are proposed to guide the implementation of Sri Lanka’s logging ban as a strategy for achieving forest conservation. They are also relevant for other countries.

Option 1: Complete logging ban with appropriate policy and legislation

The proposed option is a complete logging ban in natural forests after developing appropriate policies and relevant legislation, along with the institutional framework to support the ban. This option proposes a complete halt to commercial timber extraction from all natural forests. Other relevant conditions - such as political will, development of alternative wood resources, demarcation of forest boundaries, adequate resources for forest protection and law enforcement, extension and awareness, participatory forest management and development of a monitoring system - are also needed to more effectively achieve the objectives of forest conservation. The main disadvantage of this option is the lack of any provision for harvesting and utilization of timber from natural forests or integrated sustainable multiple-use management. This suggests the possibility of a modified option to provide both forest conservation and more flexible future management and use of the natural forests.

Option 2: Commercial logging ban with an optimal system of protected area network and community-based forest management

The present protected areas system should be reviewed and expanded to establish an optimal protected area network to conserve biodiversity in all forest ecosystems and habitats, and to protect watersheds. The forests outside the protected area system should be managed on a sustainable basis through community-based forest management for a variety of goods and services. Communities may develop management plans to prohibit extractive uses in selected parts of these forests to protect specific habitats, prevent soil erosion, protect water resources, or enhance recreational and aesthetic values. This approach will empower communities to protect and manage natural forests, provide them with economic incentives and maintain suitable harvesting rights. In addition, conditions should be implemented to achieve long-term conservation objectives. The main advantage of this option is the partial utilization of timber from natural forests while conserving biodiversity and protecting soil and water resources under adaptive and flexible sustainable management.

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