ACTIVE PROJECTGCF Knuckles Project
GCF Knuckles Project
Strengthening climate resilience of subsistence farmers and agricultural plantation communities residing in the vulnerable river basins, watershed areas, and downstream catchments of the Knuckles Mountain Range, Sri Lanka
ACTIVE PROJECTGCF Knuckles Project
GCF Knuckles Project
Strengthening climate resilience of subsistence farmers and agricultural plantation communities residing in the vulnerable river basins, watershed areas, and downstream catchments of the Knuckles Mountain Range, Sri Lanka
ACTIVE PROJECTGCF Knuckles Project
GCF Knuckles Project
Strengthening climate resilience of subsistence farmers and agricultural plantation communities residing in the vulnerable river basins, watershed areas, and downstream catchments of the Knuckles Mountain Range, Sri Lanka
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Component 2: Financing mechanisms for Sustainable Land Management (SLM)
Upgraded and more efficient green value chains and penetration of new markets
- Initiation of the co-designing process to establish an inter-agency committee to support green value chain upgrades.
An initial meeting with government officials and other stakeholders in Matale commenced the co-design process for establishing an inter-agency committee to support green value-chain upgrades. The project team explained the need for such a committee and explored opportunities to leverage existing soft institutions in the region.
- Scoping to identify suitable commodities available at smallholder farmers for green value-chain upgrades.
A scoping exercise identified suitable commodities produced by smallholder farmers for potential green value-chain upgrades. The study report highlights opportunities to increase farmer income through commodities such as spices, kithul, herbs, selected tree crops, and nature-based tourism.
- National Working Group for Kithul industry (NWGK) upgrade.
The inaugural meeting of the NWGK was held to develop a shared action plan for a sustainable kithul value chain.
- Gathering information on household capacity, status of off takers, and present level of profitability in view of developing green value chains.
Comprehensive household surveys and off-taker assessments were conducted to evaluate farmer capacity, market linkages, and profitability. These findings now guide the development of business models and targeted interventions to strengthen smallholder green value chains.
Activity 2.1.2 – Provide technical support for Enterprise and institutional development to exploit green growth opportunities for smallholder farmers in the uplands (Managed by PMU of MoALLI)
Activity 2.1.3 – Identification and implementation of value chain upgrading options for smallholder and subsistence farmers engaged in climate smart agriculture (Managed by PMU of MoALLI)
Payment for Ecosystem Services (PES) mechanism
Activity 2.2.1 – Developing a portfolio of business cases for negotiating performance-based financial transfer mechanisms (Managed by PMU of MoALLI)
Activity 2.2.2 – Setting up a PES intermediary body as a part of the multi-stakeholder platform, and its governance system established (Managed by PMU of MoALLI)
- Working with the Ministry of Environment to establish PES at national level.
CIFOR-ICRAF is collaborating with the Ministry of Environment to integrate PES into national policy and regulatory frameworks, ensuring long-term sustainability and scalability beyond the project landscape. - Scoping study in support of implementing PES in the country.
A national scoping study assessed ecological, socioeconomic, and institutional conditions necessary for implementing PES in upstream catchments, including an overview of existing PES-like mechanisms in the country. - Review of the legal framework in support of implementing PES in the country.
A review of the legal framework examined current acts, policies, and institutional mandates relevant to PES in Sri Lanka, identifying gaps and opportunities to strengthen both compliance-based and voluntary PES mechanisms. - National workshop for co-designing the PES framework with the participation of stakeholders.
A national workshop brought together government institutions, international organisations, experts, researchers, and other stakeholders to co-design a PES framework for the Knuckles region. This process strengthened consensus on principles, monitoring needs, and institutional roles for a functional PES system.
- Framework for implementing the Payment for Ecosystem Services (PES) in Sri Lanka.
The updated PES framework (Version 2), informed by national consultations, provides global best practices, legal assessments, refined monitoring indicators, fund-flow mechanisms, and governance arrangements. - Smallholder consultation for applicability of PES Hulu gaga sub watershed.
Focused Group Discussions (FGDs) were held with farmer communities in the Hulu Gaga sub-watershed to understand land-use practices, challenges, and willingness to participate in PES as priority ecosystem service providers.
- Negotiation with Ecosystem Service (ES) beneficiaries to explore potential fund generation for PES.
Negotiations with ecosystem-service beneficiaries, including a mini hydropower operator in the Hulu Gaga sub-watershed, were undertaken to explore voluntary funding options for PES.
