Sri Lanka is partnering with the UNDP on a five-year GEF-funded project to conserve critical coastal ecosystems in Ampara, Batticaloa and Hambantota while boosting sustainable livelihoods and climate resilience.
Sri Lanka has signed a landmark agreement with the United Nations Development Programme (UNDP) for a five-year, US$4.507 million coastal biodiversity conservation project funded by the Global Environment Facility (GEF). The pact aims to promote sustainable economic benefits through the protection of critical biodiversity and ecosystem services in the Eastern and Southern coastal regions of the country.
The project will be implemented by the Ministry of Environment under the Full National Implementation Modality, with technical support from UNDP.
Titled “Promoting Sustainable Economic Benefits through the Conservation of Critical Biodiversity and Ecosystem Services in the Eastern and Southern Coastal Regions of Sri Lanka,” the initiative targets the districts of Ampara, Batticaloa and Hambantota. These areas host rich coastal and marine habitats, including estuaries, lagoons, mangroves, seagrass beds, coral reefs and beaches that support fisheries, tourism and local livelihoods while providing essential climate protection.
Project Goals and Geographic Focus
The project’s core objective is to conserve biodiversity and critical ecosystem services through an integrated, inclusive and climate-resilient approach to terrestrial, coastal and marine resource management. It seeks to generate tangible economic benefits for local communities while building long-term resilience against climate impacts.
Sri Lanka’s eastern and southern coasts form part of a global biodiversity hotspot. They support more than 21 mangrove species, over 200 hard coral species, diverse fish populations, sea turtles, dugongs and other marine life. These ecosystems act as nurseries for commercially important species, protect shorelines from erosion and storm surges, filter pollutants and store significant amounts of carbon. Yet they face mounting pressures from habitat encroachment, destructive fishing practices, pollution, invasive species and the intensifying effects of climate change, including sea-level rise and extreme weather.
By focusing on Ampara, Batticaloa and Hambantota, the project addresses regions that combine high ecological value with socio-economic vulnerability. Many coastal communities in these districts depend heavily on fisheries, small-scale agriculture and emerging tourism, making them particularly exposed to environmental degradation.
Key Focus Areas and Components
The initiative rests on five interlinked pillars: strengthening governance and institutional capacity for landscape and seascape management; improving financing mechanisms for nature-based solutions; demonstrating ecosystem-based management approaches in priority coastal areas; advancing awareness, knowledge management and gender mainstreaming; and establishing robust monitoring and evaluation systems for lasting impact.
According to project documents, the GEF grant of US$4.507 million is complemented by substantial co-financing of approximately US$26.67 million from government agencies, partners and other sources, bringing the total investment to over US$31 million. The five-year programme (60 months) falls under GEF-8 and addresses multiple focal areas including biodiversity, climate change and land degradation.
Strengthening Governance and Institutional Capacity
A central component focuses on creating an enabling framework for safeguarding biodiversity and promoting a nature-positive economy. This includes establishing functional coordination mechanisms at provincial, district, divisional and community levels; reviewing and updating priority policies and regulations; developing monitoring systems for ecosystems outside protected areas; and building the institutional capacity of key national and provincial entities.
These measures aim to overcome fragmented management approaches that have historically hindered effective coastal and marine conservation in Sri Lanka. By fostering multi-sector collaboration, the project seeks to integrate biodiversity considerations into broader economic planning and development decisions.
Financing Nature-Based Solutions and Livelihood Opportunities
Another key thrust is improving financing and incentives for nature-positive practices. Activities will assess resource gaps, develop and test financial solutions and resource mobilisation strategies, explore public-private business models, and strengthen stakeholder capacities to implement new revenue-generating instruments.
The project expects to deliver direct benefits to at least 8,500 people, half of them women, through improved natural resource management, livelihood diversification, small-scale enterprises and climate mitigation measures. Nature-based economic opportunities are expected to span sustainable fisheries, responsible tourism, climate-smart agriculture and related value chains.
Demonstrating Ecosystem-Based Management on the Ground
The largest share of resources will support the demonstration and scaling of integrated ecosystem-based management in selected coastal landscapes and seascapes. Planned outcomes include enhancing management effectiveness across more than 200,000 hectares of terrestrial protected areas and nearly 1,000 hectares of marine protected areas; improving management of large wetland and marine areas outside formal protection; restoring at least 4,800 hectares of degraded wetlands, forests, mangroves, tidal marshes and seagrass beds; and promoting responsible tourism and sustainable fisheries practices.
Public-private partnerships will be developed for the restoration of forests, mangroves, salt marshes, coral reefs and seagrass ecosystems. Climate-smart agricultural practices and producer partnerships will also be facilitated to reduce pressure on sensitive habitats while supporting rural incomes.
Awareness, Gender Equality and Long-Term Sustainability
The project places strong emphasis on awareness raising, knowledge management and gender mainstreaming to ensure results can be replicated and sustained. Capacity-building programmes will help stakeholders integrate biodiversity and ecosystem services into their plans and investments. Good practices will be documented and shared, and a dedicated monitoring and evaluation system will track impacts, including gender and youth outcomes.
UNDP has highlighted the community-focused, multi-sectoral approach as central to success. “Through a community-focused, multi-sectoral approach, this project will help safeguard Sri Lanka’s terrestrial, coastal and marine ecosystems while building climate resilience and sustainable livelihoods for coastal communities,” the organisation stated.
Broader Context and Expected Impact
The initiative aligns with Sri Lanka’s national commitments under the National Biodiversity Strategy and Action Plan, Nationally Determined Contributions, National Adaptation Plan and Land Degradation Neutrality targets. It also contributes to global goals under the Convention on Biological Diversity and the Sustainable Development Goals, particularly those related to life below water, climate action and sustainable livelihoods.
By combining conservation with economic opportunity, the project seeks to demonstrate that protecting coastal biodiversity can deliver measurable benefits for both nature and people. Over its five-year lifespan, it aims to improve ecosystem resilience, reduce greenhouse gas emissions through restoration, and create models of sustainable coastal development that can be scaled nationally.
