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Private Sector Participation in Commercial
Forest Plantation Development
Pabasara Gunawardane
Contents
• Introduction
• History
• Private tree growers
• Statistics
• Advantages
• Issues
• Challenges
• Recommendations
Introduction
• The man-made forests occupy a significant place in the national
forest estate
• Generally these forest type falls into the category of multiple use
reserved forests as defined in the Forestry sector master plan
1995
• At present, most forest plantations consist of even-aged
monocultures
• Forest Department(FD) of Sri Lanka was started in 1887
• Forest plantation establishment was started in 1890s
• Teak, Eucalyptus, Mahogany and Pines were used
• Mainly focused on replanting in abandoned lands until 1950s
• Due to the policy change in 1953 large scale forest planting was
taken place to reduce the pressure for timber on natural forests
History
• During 1980s FD invited private sector to participate in forest
plantations
• Due to the lack of knowledge and capital investment the project was
unsuccessful
• Private sector was again encouraged in 2000s
• The response was extraordinary high
• After evaluating the proposals and verifying the financial stability of the
applicants FD has leased 4000ha for the private sector
• Private sector was also encouraged to establish forest plantations in
private lands also
• Exotic species were used in forest planting due to their
faster growth rates over the indigenous species
• Teak
• Eucalyptus
• Mahogany
• Acacia
• Pines
• Primary aim is to address timber and fuel wood demand
Private Tree Growers
• Private individuals
• Regional Plantation Companies
• Private companies offering small plots of lands stocked with
Teak or Mahogany seedlings to the public on long-term leases
2%3%
6%
9%
11%
15%
22%
2%
1%
7%
22%
Forest lands in relation to agricultural and other land
uses
Rubber
Tea
Coconut
Paddy
Other perennial crops
Home gardens
Other Land Uses
Other non - perennial crops
Forest Plantations
Sparse Forests
Natural Forests(Closed Canopy)
Source: Statistical Abstracts of the Department of Census and Statistics-2010.
18%
11%
42%
10%
11% 8%
Rubber
Coconut
Home gardens
Imports
Forest Plantations
Other
Contribution of wood sources as a percentage of total supply
Advantages of private sector participation
• Popularizing the concept ‘Forestry as a business’
among the general public
• Providing required intensive management for the
plantations (In order to gain profits)
• Technical knowledge is applied intensively
• Introduction of novel species to the trade
(Sandalwood, Aquillaria, Vanilla)
• Improvement in the research and development aspect
Issues of private sector participation
• Most of the time the land deeds are not legal
• Due to financial instability, some planting companies can be
bankrupted and the investors will be affected
• Social and environmental impacts and risks – some private owners
are not obligated to consider regional ecological concerns
• In order to attract more investors the future projections of growth
and related statistics may be over estimated and publish
Challenges
• Availability of land
• Environmental and social issues
• Unpredictable catastrophes
• Being a long term investment most investors discouraged to
involve
Estimated population growth in Sri Lanka (1970-
2020)
Suggestions
• Use of forest plantation as an Eco tourism venture
• Carbon trading ( UN – REDD)
Recommendations
• Establishment of a planning and monitoring body for the private sector
institutes
• Providing insurance and tax benefits for the investors
• Much coordination will be needed with other sectors such as wildlife
conservation, land use planning, water management, environmental
management, the timber industry, paper manufacturing and disaster
management etc.
• Raising the productivity of forest plantations using new technology
• Within the sector itself, much collaboration will be needed among all
stakeholders in planning and implementation.
References
• Forest department, Government of Sri Lanka, Sri Lanka forestry outlook study, Food and
agriculture organization of United Nations, (2009)
• Dr. Subasinghe S.M.C.U.P, Plantation Forestry in Sri Lanka: Challenges and Constraints,
Presidential Address at the AGM of Institute of Biology Sri Lanka, (2007)
Importance And Uses Of Forest Plantations, srilankaforestry.blogspot.com
• Department of census and statistics, National accounts of Sri Lanka, (2012)
• Duruthu Edirimuni Chandrasekera, Weak response by Central Bank to regulate forestry firms,
The Sunday times 15 June 2014
• The UN REDD programme, http://www.un-redd.org/aboutredd (as at 0416 on 14th June 2015)
• Dr. Yogarathnam N, Forestry in plantations will compensate for deforestation, The bottom-
line, 25 July 2010
• Dr. Ruwanpathirana N, Timber Utilization in Sri Lanka, Available at www.timber.lk (as at
0421 on 14th June 2015)
• De Zoysa, Mangala, Private Forest Plantation Development in Sri Lanka: Issues and
Challenges, available at http://www.researchgate.net/publication/237254206
• Ram Alagan, Sri Lanka’s Forest Cover: What We Know and What we Don’t, earth day 2009

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Private sector participation in commercial forest plantation development in Sri Lanka

  • 1. Private Sector Participation in Commercial Forest Plantation Development Pabasara Gunawardane
  • 2. Contents • Introduction • History • Private tree growers • Statistics • Advantages • Issues • Challenges • Recommendations
  • 3. Introduction • The man-made forests occupy a significant place in the national forest estate • Generally these forest type falls into the category of multiple use reserved forests as defined in the Forestry sector master plan 1995 • At present, most forest plantations consist of even-aged monocultures
  • 4. • Forest Department(FD) of Sri Lanka was started in 1887 • Forest plantation establishment was started in 1890s • Teak, Eucalyptus, Mahogany and Pines were used • Mainly focused on replanting in abandoned lands until 1950s • Due to the policy change in 1953 large scale forest planting was taken place to reduce the pressure for timber on natural forests History
  • 5. • During 1980s FD invited private sector to participate in forest plantations • Due to the lack of knowledge and capital investment the project was unsuccessful • Private sector was again encouraged in 2000s • The response was extraordinary high • After evaluating the proposals and verifying the financial stability of the applicants FD has leased 4000ha for the private sector • Private sector was also encouraged to establish forest plantations in private lands also
  • 6. • Exotic species were used in forest planting due to their faster growth rates over the indigenous species • Teak • Eucalyptus • Mahogany • Acacia • Pines • Primary aim is to address timber and fuel wood demand
  • 7. Private Tree Growers • Private individuals • Regional Plantation Companies • Private companies offering small plots of lands stocked with Teak or Mahogany seedlings to the public on long-term leases
  • 8. 2%3% 6% 9% 11% 15% 22% 2% 1% 7% 22% Forest lands in relation to agricultural and other land uses Rubber Tea Coconut Paddy Other perennial crops Home gardens Other Land Uses Other non - perennial crops Forest Plantations Sparse Forests Natural Forests(Closed Canopy) Source: Statistical Abstracts of the Department of Census and Statistics-2010.
  • 9. 18% 11% 42% 10% 11% 8% Rubber Coconut Home gardens Imports Forest Plantations Other Contribution of wood sources as a percentage of total supply
  • 10. Advantages of private sector participation • Popularizing the concept ‘Forestry as a business’ among the general public • Providing required intensive management for the plantations (In order to gain profits) • Technical knowledge is applied intensively • Introduction of novel species to the trade (Sandalwood, Aquillaria, Vanilla) • Improvement in the research and development aspect
  • 11. Issues of private sector participation • Most of the time the land deeds are not legal • Due to financial instability, some planting companies can be bankrupted and the investors will be affected • Social and environmental impacts and risks – some private owners are not obligated to consider regional ecological concerns • In order to attract more investors the future projections of growth and related statistics may be over estimated and publish
  • 12. Challenges • Availability of land • Environmental and social issues • Unpredictable catastrophes • Being a long term investment most investors discouraged to involve
  • 13. Estimated population growth in Sri Lanka (1970- 2020)
  • 14. Suggestions • Use of forest plantation as an Eco tourism venture • Carbon trading ( UN – REDD)
  • 15. Recommendations • Establishment of a planning and monitoring body for the private sector institutes • Providing insurance and tax benefits for the investors • Much coordination will be needed with other sectors such as wildlife conservation, land use planning, water management, environmental management, the timber industry, paper manufacturing and disaster management etc. • Raising the productivity of forest plantations using new technology • Within the sector itself, much collaboration will be needed among all stakeholders in planning and implementation.
  • 16. References • Forest department, Government of Sri Lanka, Sri Lanka forestry outlook study, Food and agriculture organization of United Nations, (2009) • Dr. Subasinghe S.M.C.U.P, Plantation Forestry in Sri Lanka: Challenges and Constraints, Presidential Address at the AGM of Institute of Biology Sri Lanka, (2007) Importance And Uses Of Forest Plantations, srilankaforestry.blogspot.com • Department of census and statistics, National accounts of Sri Lanka, (2012) • Duruthu Edirimuni Chandrasekera, Weak response by Central Bank to regulate forestry firms, The Sunday times 15 June 2014 • The UN REDD programme, http://www.un-redd.org/aboutredd (as at 0416 on 14th June 2015) • Dr. Yogarathnam N, Forestry in plantations will compensate for deforestation, The bottom- line, 25 July 2010 • Dr. Ruwanpathirana N, Timber Utilization in Sri Lanka, Available at www.timber.lk (as at 0421 on 14th June 2015) • De Zoysa, Mangala, Private Forest Plantation Development in Sri Lanka: Issues and Challenges, available at http://www.researchgate.net/publication/237254206 • Ram Alagan, Sri Lanka’s Forest Cover: What We Know and What we Don’t, earth day 2009