Potential Land Use Options in Hanthana Mountain Range, Sri Lanka: An Analysis of Economic Potential and Community Preferences

Forests are a significant aspect of nature that deliver ecosystem services for the betterment of living beings. Most ecosystem services of forest are unquantified in monetary terms due to the unavailability of direct market values. The main objective of this study was to evaluate the costs and benefits of various reforestation scenarios. The study is conducted based on the economics of ecosystem and biodiversity framework to recognize, demonstrate and capture the values of forests with reference to Hanthana forest range. The study targeted the responses of three main segments of the community related to the forestry site; Villagers of Udaperadeniya and Mawelawaththa villages, community of University of Peradeniya and institutional stake-holders of the conservation forest areas of Hanthana. The sample consists of 85 respondents randomly selected with-in each group above. A benefit-cost analysis was performed to assess the economic viability of three selected reforestation scenarios: ecotourism site, primary forest, and participatory forest. The study revealed that the most preferred reforestation scenario was the ecotourism site, with aver-age benefit-cost ratios for ecotourism site, primary forest and participatory forest calculated as 0.865±0.462, 2.233±0.101, and 6.86±2.509, respectively. Despite not being the most popular choice, the participatory forest scenario demonstrated the highest return relative to its costs. This study serves as a feasibility assessment, highlighting the comparative merits of reforestation projects and the importance of community participation.