Readiness of the Port of Colombo as a Mega Hub Port for Transshipment Containers

The Colombo Port has become a hub port for transshipment containers in the South-Asia region mainly due to its location advantage and have further carved out a niche linking feeder connections in the Indian subcontinent trade to main sea routes on the back of its access to the Indian Ocean. During past couple of decades major ports around the world have faced significant challenges due to rapid evolvement in marine technology and international logistical system. Primarily there were two major thrusts have been impacting the seaports which identified as ‘Increased specialization of ship design’ and the ‘Growth in ship size’. These two aspects of ship specialization and capacity enhancement that were continued to progress resulted a greater demand in Ports and container terminals to invest on improvements to equipment and ports infrastructure. Each subsequent generation of containership which evolved has not only created new challenges to ports around the world, but also limited the number of port calls. Presently only one deep water container terminal available in Port of Colombo to handle modern day Ultra large container carriers (ULCC’s)

ESTIMATION OF EXISTENCE VALUES SOME EMPIRICAL ISSUES

Existence values (EVs) are the values derived from the knowledge that certain species ornatural environments exist. Existence values arc pure public goods and hence lack marketvalues. As income rise and natural environment suffer greater degradation, demand forexistence values is likely to increase. This paper presents results of a contingent valuationsurvey designed to elicit existence values of a tropical rain forest and several issues relatedto estimation of existence values of a global resource.A contingent valuation survey was carried out in order to derive EVs for the Sinharaja RainForest Reserve in Sri Lanka. An open ended question format was used with a neutral trustfund as a payment vehicle. Three samples from Sri Lanka (urban and rural areas distant tothe forest and peripheral villages to the forest) and one remote sample (from UK) were usedin the study. The existence values for different types of users such as educational users.recreational users and non users were derived from the survey.When expressed as percentage of income, willingness to pay values showed cleardifferences among different user types in different samples. On average, local ruraleducational users stated the highest values while remote non-users stated the lowest values.These existence value estimates, notwithstanding the theoretical validity, clearly illustratethe empirical problems related to estimation of existence values.It could be assumed that existence values stated by non-users provide the nearestapproximation for the 'true' existence value of a resource. However, this relates with theprovision of information and the knowledge of the respondent since people derive benefitsdirectly and indirectly and they may be aware or unaware of such benefits emanating fromtropical rain forests.Implications of these findings in designing future existence value estimations and the role ofinformation in survey design are highlighted. Implications for policy at global level,specifically, how mechanisms for appropriation of such values could be developed are alsodiscussed.

Beyond Environmental Economics New Directions for Policy Making

In the 1950s and 1960s economics had its focus on economic growth ignoring the fact that some of theinputs essential to the production process were limited in supply. In other words, the sustainability of thegrowth process was not addressed properly. Since 1970, a number of world views appeared ranging froma support for a market technology driven growth process which is environmentally damaging, through aposition advocating prudent resource management to an ‘eco-preservationist’ positions which explicitlyreject economic growth. Against this background environmental economics became established as a subdiscipline (Pearce and Turner, 1990). Environmental economics (EE) was considered as an opportunity toaccommodate the environmental implications of the growth economy and society within a modified(though not radically different) set of economic models.The subject has developed immensely during the last three decades both in theoretical and empiricalgrounds. Micro level applications of EE include estimating demands for various environmental goods andservices and damage estimations (through various environmental valuation methods), designing ofeconomic instruments, project level cost benefit analyses, aiding renewable and non renewable resourceharvesting decisions. Macro level applications include green accounting (integrating environmentaladditions and depletions into system of national accounts), development of macro level indicators etc.Such applications seem to cover a wide variety of real world issues ranging from biodiversity, energy,agricultural and local pollution issues to global issues such as climate change, ozone depletion andultimately towards the long term survival of mankind. Although Environmental economics seem toaddress these issues quite comprehensively than conventional economics and pure scientific approaches,the outcomes of such applications are often subject to debate. Doubts are being raised mainly fromdifferent disciplines indicating non recognition of their concerns, particularly from ethical, ecological andphilosophical grounds.Most natural resource policy decisions in many countries have made sure that environmental economicvalues are being incorporated. There are however policy gaps, partly due to the yet unresolved theoreticalissues of the subject and partly due to the single disciplinary roots of economics. The subject of ecologicaleconomics arose partly in response to such concerns and enriched the analysis with the incorporation ofecological inter linkages to the economics (Costanza, 1991).The objective of the paper is therefore to first elaborate on the various aspects of the subject that are beingused in the various natural resource management issues. For example, EE provides explanations forresource degradation basically the economic failure arguments and proposes corrections accordingly. Thepaper elaborates on the usefulness of such arguments and the critique, the need for alternativeexplanations.The second section discusses more practical issues, how the decision making has been aided by thediscipline through standard micro level and macro level analysis with special emphasis on Sri Lanka. Italso discusses the drawbacks of the analytical tools especially in relation to the instances where themultidisciplinary integration could enhance the outcome. Some of these integrations are however, onlytheoretical conceptualizations while others have been actually tested in different contexts. The subject ofenvironmental economics has benefited immensely from various other disciplines. The third section ofthis paper is devoted to discuss on such disciplines that could be further integrated in order to widen thescope of the subject

Analysis of Water Management towards Achieving Sustainable Development Goal 6 (Clean Water and Sanitation for All); Case Study of WilpitaWewa (Hali-Ella), Kamburupitiya, Sri Lanka

Sustainable Development Goals (SDG) or 2030 Agenda for Sustainable Development is an ambitious plan on achieving social, environmental and economic sustainability at global level. SDG6 is the dedicated goal on water and sanitation among 17 goals of SDGs. It sets out to ensure availability and sustainable management of water and sanitation for all. Goal contains 8 targets and 11 global indicators. SDG6 is targeting on managing global water resource though collaborative actions on improved water quality, increased water-use efficiency, implemented integrated water resources management, protected and restored water-related ecosystems, expanded international cooperation and capacity-building support on water and sanitation management. The main objective of this study is to assess the user values of water and status of water management in Wilpitawewa (Hali-Ella); small scale irrigation tank in Kamburupitiya, Matara to determine the status of the targets of SDG6. A household survey was conducted with a pre-tested questionnaire among the tank water user community of the area. Stratified random sampling was carried out and 75 households from four distances were selected (350 m, 2120 m, 2816 m and 3000 m) where the water gates are located along the tank irrigation channel. The respondents were asked to indicate usages of water, obtained output and associated monetary values. Collected data was analyzed quantitatively using Minitab 16. According to the results, total economic values of water of the sample indicate that 54% is for paddy cultivation, and 31%, 12% and 2% of economic values were represented by vegetable and fruit cultivation, fishery and domestic consumption respectively. Provision of tank water for paddy cultivation had decreased with the distance and caused for the reduction of the productivity of paddy fields. Supply and withdrawals of tank water for paddy cultivation had mismatches and mismanagement which led to water stress and reduction of water use efficiency of the tank. The quantity of tank water shows gradual fluctuation with prevailing weather variations, especially in recent years and this caused impact in domestic water consumption of the community. Waste dumping into the tank and surrounding area has increased and local community does not practice any water conservation method in their household levels. Therefore, majority of indicators of the SDG6 targets do not fulfill with existing conditions of the Wilpitawewa tank and its water users. The study emphasizes for responsible actions on improvements in water and sanitation management on achieving SDG6Keywords: Sustainable Development Goals, Water management, Water user value

GLASS RECYCLING IN SRI LANKA: A FINANCIAL ANALYSIS

Glass recycling is the use of secondary raw materials or post consumer glass waste for the manufacturing of new or similar products. Glass Company of Sri Lanka is manufacturing glass containers and also involved in glass container recycling in Sri Lanka. The main purpose of the study is to carry out a financial analysis of glass recycling from company point of view along with an analysis on possible best practices that could enhance the recycling behaviours of individuals. The primary data was gathered from a household questionnaire survey which was conducted in Western Province of Sri Lanka. Sample of 150 households were selected from 8 GN divisions in  Colombo, Gampaha and Kaluthara districts representing two Municipal councils, three urban councils, and three Pradeshiya Sabha. Six different scenarios were proposed for the respondents in order to generate information on practices that are most preferred by them and on their willing levels of recycling under each scenario. Results revealed that the best scenario was the introduction of door to door collectors which yielded highest net present value of Rs. Mn 1,517.39 at 10% discount rate and resulted 7.98% of net profit increase from the current glass recycling process of Glass Company

EVALUATION OF URBAN AIR POLLUTION COST A CASE STUDY IN THE COLOMBO CITY

Air pollution is arguably the most important. in terms of economics cost, of thevarious types of pollution caused by transport and industrial activities and itseffects have been widely studied in other countries. However, direct studies havenot been undertaken to measure the economics cost of air pollution in Sri Lanka.Concern for air pollution in Sri Lanka is focused mainly in Colombo. AlthoughColombo air pollution level is less than many Asian countries, recent monitoringresults show that air pollution from particulate matter and Sulfur is well above theWHO recommended levelThe contingent valuation method was used to estimate the air pollution cost anddata was collected from a contingent valuation survey carried out in the Fort andPettah areas. Respondents' willingness to pay values were obtained for ahypothetical market presented. The results were consistent with the economictheory. Aggregated cost of air pollution for the country was Rs.55 million peryear. This value may help cost benefit analysis of air quality managementprogrammes and other related development policy and programs in Sri Lanka.

GLOBAL VALUES FOR LOCAL RESOURCES A CONTINGENT VALUATION APPROACH FOR SINHARAJA RAIN FOREST RESERVE IN SRI LANKA

Tropical forests are sources of important global use and non-use values. However. thesevalues are not often reflected in global markets, thus creating global externalities. In orderto demonstrate glohal values of tropical rain forests. this study sought to estimate globalnon-use values of the Sinharaja Rain Forest Reserve in Sri LankaA contingent valuation survey was carried out in the United Kingdom in order to obtainexistence and bequest values for the forest. Open ended questions were asked from theselected sample of respondents 10 obtain their maximum willingness 10 pay.The non use values elicited for the forest were related to variation in respondents' socioeconomic status. Multiple regression analysis showed that income and education hadpositive coefficients for hoth existence and bequest values.The results showed that remote populations have positive values for tropical rain forest.Thc implications of these results to the use of contingent valuation methodology forestimating total economic values of forests in developing countries is discussed. and theparticular implications of demonstrating the magnitude of external benefits that couldprovide insights into the correction of global economic failures highlighted

EXTENDED COST BENEFIT ANALYSIS OF SAMANALAWEWA HYDRO ELECTRIC PROJECT

The Samanalawewa Hydro Electric Project and its water commanding area is the subject ofthis study. This project is a single purpose hydropower project, which harnesses the watersof the Walawe Ganga by damming the river at the confluence of the Belihul Oya andWalawe Ganga at an elevation of 400m Mean Sea Level. The reservoir covers an extent of897 ha at normal high water level and its catchment covers an area of 341.7 km".As this was a single purpose project, much attention was not paid to other aspects such assupplying irrigation water for down stream and other environmental impacts. Thereforethis study sought to estimate the economic loss due to the reduction of land area and paddyyield at selected down stream areas. In addition, it aims to estimate the economic value oflost carbon sequestration function of the Samanalawewa reservoir submerged area and toincorporate the above values in an extended Cost/Benefit analysis for the Samanalawewaproject.Primary and secondary data were used for this study, which involved a farm householdsurvey. This research disclosed that the scarcity of water due to the dam has resulted in11.64% of yield reduction (equivalent to 36<;44.38 bushels or Rs. 10.5 million) and 24.89%of land become uncultivated (equivalent to 444.27 acres or RS.II. 7 million) annually. Theglobal warming damage costs due to .he lost carbon sequestration function of thesubmerged area is estimated to be Rs. 0.22 million annually. The estimated economic valueof surplus water in terms of foregone powe. generation from the leak at paddy harvestingperiods (April, September and October) is Rs. 95.33 million.The extended cost benefit Analysis showed that EIRR equals 6 %, NPY equals Rs. (-)1980.23 million, and BC Ratio equals 0 47. The implications of these results on futurepower-sector project planning are also discussed.

Economics of urban amenities A contingent valuation approach for Bolgoda lake

Bolgoda Lake is known as the largest fresh water body in Colombo Urban Area (CUA) and situatedin the Southern boundary ofCUA. It covers 1,245 hectares. There are 14 Divisional secretariat (OS)divisions and 105 Grama Niladary (GN) divisions. Bolgoda Lake lies along the highly popularizedtownships and it provides a variety of environmental services such as natural environment for fisheriesproduction and estuary function; ground water recharge, potable water supply; recreation/ tourism;and )1atural biotic habitat. In CUA, there are very few lakes like Bolgoda, which provides aestheticvalues for the urban environment. Environment of the Bolgoda Lake is threatened by the disposal ofliquid and solid waste, agricultural run-off, sedimentation and congestion due to recreational uses.However, there wi II be an increasing demand for the environmental services produced by the BolgodaLake in the future.Objectives of the present study are to identify the environmental benefits of the Lake and estimateeconomic value of selected environmental benefits. A pilot survey was carried out and five major usergroups were identified; fishermen, hotel owners, boat owners, recreational users (for swimming andhotel visiting) and indirect users. Selected study area for the present study belongs to five GN divisionsfrom Moratuwa and Panadura OS divisions. Contingent valuation method was applied to estimate theeconomic value of the Bolgoda Lake. Users' willingness to pay (WTP) was elicited on a pre-testedhypothetical market.Depending on the WTP values, the 5 user groups were regrouped into two categories, namely User I(heavy dependency) and User 1/ (less dependency). WTP values per household per year for the UserI and User II are Rs.18, 600 and 514.3 respectively. Estimated economic value of the Bolgoda Lakefor the study area is Rs. 84,192.7 (US$ 809.55) per hectare per year. Regression analysis was carriedout to identify the socio economic characteristics of the users that affect the WTP value of the users.The results were consistent with the theory. However, the values of the study area have not beenextrapolated to the whole lake, due to the high variability of the sample mean from place to place.It was clear that the Bolgoda Lake is a valuable aesthetic asset in the CUA and it should be judiciouslymanaged for sustain the provision of environmental services. However, the ultimate decision over theusefulness of the lake has to be based on weighing the estimated value of the environmental servicesof the Lake against the value of the use of lake as a sink for domestic and industrial waste.

EXTENDED COST BENEFIT ANALYSIS OF A BIOGAS GENERATION PLANT

Solid waste is a growing problem in Sri Lanka in the absence of proper managementmeasures. Development and implementation of a National strategy for municipal solidwaste management is essential in order to reduce environmental, social and the economicproblems associated with the present disposal practices. Such strategies however, need tobe subjected to proper economic analysis in order to arrive at informed decisions. Thispaper presents an extended cost benefit analysis of a biogas generation plant that usesmunicipal solid waste as the raw material.To dispose vegetable market garbage available in Wattala, Kandana and Ja-ela areas a640 Mt capacity biogas/ bio fertilizer project has been housed at Muthurajawela (alongHamilton canal, Elakanda), by the National Engineering Research & DevelopmentCenter of Sri Lanka (NERDC) which uses Dry Batch Anaerobic Digester Technology.Among the other biological treatment options, anaerobic digestion is the most costeffective, due to the high-energy recovery linked to the process and its limitedenvironmental impacts.Economic analysis has been carried out to identify environmental costs and benefitsassociated with the above project. Several environmental valuation methods have beenapplied to value the identified costs and benefits. The main benefit of reduction ofmunicipal solid waste has been estimated by contingent valuation method using samplesfrom Wattala-Mabola, Ja-ela, and Peliyagoda local authority areas. Another benefit is thereduction of green house has emission due to the reduction of open dumping. Greenhouse gas (methane) emission from solid waste was estimated through Sholl Canionmodel and valued using avoided global damage cost approach. Benefits of biogas asenergy and organic fertilizers and employment benefits were estimated by market basedapproachesThe project is viable from economy and environment point of view with net present valueof Rs 142 million for a 20-year period with 10% discount rate. This analysis provides ajustification for undertaking solid waste management strategies in a technologically,environmentally and economically viable manner