Beyond the Mangroves

The Economic Benefits of Restoring Sri Lanka's Wetlands

Our wetlands, including coastal mangroves and inland marshes, are vital to the country's ecological and economic development. These ecosystems provide essential services such as shoreline protection from erosion and support for fisheries, which are crucial for the livelihoods of many communities. However, these wetlands face several threats, including pollution, urbanization, and unchecked agricultural expansion.

A recent report by the International Institute for Environment and Development (IIED) suggests that debt-for-nature swaps could be a game-changer in conserving these ecosystems. Under this financial mechanism, a country has some of its debt forgiven in exchange for a commitment to environmental conservation projects. According to Laura Kelly, director of IIED's sustainable markets research group, this innovative financing approach is essential for countries like Sri Lanka, which are grappling with debt and vulnerable to climate change impacts such as sea-level rise that threatens wetlands and coastal areas.

Further, a 2018 World Wildlife Fund (WWF) study highlights the global economic significance of healthy ecosystems, estimating their contribution to the worldwide economy at around $33 trillion annually. For Sri Lanka, embracing debt-for-nature swaps could unlock substantial funding for wetland restoration, tapping into this vast economic potential. Promoting ecotourism, supporting sustainable fisheries, and fostering other nature-based industries through restored wetlands can rejuvenate these crucial habitats, and local economies can benefit.

Current State of our Wetlands

Sri Lanka is home to various wetlands essential to the country's ecology and economy. These wetlands range from the large Muthurajawela Marsh near Colombo to the Bundala National Park, designated as a Ramsar site. Unfortunately, these wetlands have suffered from degradation over the years despite their ecological significance. Urbanization, especially around major cities like Colombo, has led to a significant loss of wetland areas. According to a study by the Centre for Environmental Justice, around 35% of Sri Lanka's wetlands have been degraded or converted for agricultural and urban development.

The pollution of these vital habitats has also been exacerbated by agricultural runoff, industrial waste, and domestic sewage. This pollution has hurt the biodiversity within the wetlands and the communities that depend on them. The decline in wetland health has resulted in a loss of biodiversity. It has weakened their ability to provide flood mitigation services - a crucial service given our vulnerability to monsoon floods.

Economic Benefits of Biodiversity Enhancement

Global studies indicate that wetland restoration can yield returns ranging from 10:1 to 20:1 on investment, translating into substantial economic benefits for local communities. In Sri Lanka, restoring wetlands directly and profoundly impacts biodiversity, significantly boosting local economies. Far from being merely a concern for environmental conservation, biodiversity in wetlands is a vital economic asset. Wetlands such as the Sinharaja Forest Reserve and Anawilundawa, both teeming with diverse species, play an instrumental role in attracting ecotourism. As reported by the Sri Lanka Tourism Development Authority, this sector contributed approximately $2.2 billion to the national economy in 2019, highlighting its substantial contribution to the country's economy. The ecotourism market size has proliferated in recent years. It will grow from $219.53 billion in 2023 to $249.16 billion in 2024 at a compound annual growth rate (CAGR) of 13.5%.

Restoration efforts in these areas often lead to the revival of native species, which improves ecosystem services such as pollination and pest control, which are essential for the surrounding agricultural lands. For instance, the Kala Oya basin's restoration has enhanced local agriculture by improving water quality and soil fertility, which directly supports rice and vegetable farming, staples of our diet and economy. Moreover, healthy wetland ecosystems can increase fish stocks, which is critical for the livelihoods of many rural communities. The Department of Fisheries and Aquatic Resources notes that inland fisheries, supported by robust wetland ecosystems, contribute significantly to national fish production, ensuring food security and providing employment to thousands.

Water Quality Improvement and Economic Impacts

Wetlands play a crucial role in naturally purifying water through filtration and sedimentation. In Sri Lanka, restoring these ecosystems has been vital in mitigating water pollution, mainly in areas with industrial waste and agricultural runoff. For example, the Kandy Wetlands Park illustrates how urban wetlands can significantly improve water quality, reducing water treatment costs for local authorities.

Improved water quality has far-reaching economic impacts. Cleaner water lessens the burden on public health systems by reducing the incidence of waterborne diseases common in regions with poor water quality standards. This improvement in public health translates into reduced healthcare costs and increased productivity as healthier populations contribute more effectively to the economy.

Furthermore, better water quality supports the fisheries and tourism industries, two pillars of Sri Lanka's economy. Pristine waters attract more tourists, particularly to areas known for water sports and scenic beauty, such as the Madu Ganga. Restored wetlands help maintain the clarity and cleanliness of the water, providing better visitor experiences and boosting local businesses and employment in tourism.

Finally, improved water quality supports aquaculture, a growing industry in Sri Lanka. Healthier fish stocks in freshwater bodies lead to increased yields and profitability for fish farms. The government's efforts to promote aquaculture as a sustainable livelihood in rural areas have been greatly supported by initiatives to restore and maintain local wetlands.

Recent Successful Case Studies of Wetland Restoration In Sri Lanka

Anawilundawa Wetland Sanctuary

One of the standout achievements in wetland restoration is the Anawilundawa Wetland Sanctuary, strategically nestled between the coast and the Chilaw-Puttalam railway line. This sanctuary, distinguished as a Ramsar Wetland Site of International Importance, incorporates a network of tanks linked by an intricate irrigation system. This setup creates a unique and vital habitat for various aquatic and terrestrial species. Anawilundawa is a haven for over 160 species of birds, including resident and migratory species such as pelicans, storks, and cormorants. It also provides a critical habitat for mammals like elephants and otters, reptiles, amphibians, and an abundant assortment of fish. Beyond its biodiversity, the sanctuary is essential in flood control and water purification, benefiting the surrounding communities.

The restoration efforts at Anawilundawa have significantly enhanced local biodiversity, drawing bird watchers and nature enthusiasts worldwide, thereby boosting the local ecotourism industry. This influx of visitors has catalyzed the growth of local businesses and guided tour services, creating sustainable income sources for the community and reinforcing the sanctuary's role as an ecological and economic asset.

Muthurajawela Marsh

Muthurajawela Marsh, the largest wetland ecosystem in Sri Lanka, is strategically located adjacent to the Negombo Lagoon near Colombo. Encompassing an estimated 15,000 hectares, this marsh is crucial for flood control within the Colombo metropolitan area, providing a natural defense against storm surges and floods. The marsh is recognized as a biodiversity hotspot and plays a vital role in ecological balance. It serves as a habitat for over 300 species of birds, both resident and migratory, and supports a rich biodiversity, including various mammals, reptiles, amphibians, and fish species.

As a natural filter, Muthurajawela purifies water that is crucial for irrigation and domestic use in the surrounding communities. Recent restoration efforts have focused on reducing encroachment and pollution, significantly improving the water quality and increasing the abundance of local wildlife. This has enhanced the marsh's appeal as a destination for tourists and researchers, boosting local ecotourism and conservation-related jobs. The proximity of Muthurajawela to Colombo also makes it a favored location for educational field trips, fostering environmental awareness among students and supporting local educational and recreational businesses. These initiatives preserve this vital ecological zone and promote sustainable economic growth through ecotourism and conservation efforts.

Investing in Sri Lanka's wetlands is an environmental initiative and a strategic economic investment that yields substantial returns. The success stories of Anawilundawa and Muthurajawela demonstrate how revitalized wetlands contribute to biodiversity conservation, improve water quality, and promote ecotourism, creating jobs and supporting local economies. These benefits highlight the interconnectedness of ecological health and economic prosperity.

As Sri Lanka faces environmental challenges such as climate change and urban expansion, the role of wetlands becomes increasingly essential. The success stories we have highlighted show the potential for wetland restoration to play a central role in the nation's sustainable development strategy. Going forward, governmental and non-governmental stakeholders must expand their commitment to restoring and preserving these vital ecosystems. The future of Sri Lanka's natural heritage and economic stability depends on the health of its wetlands.