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  FORESTRY SYMPOSIUM 1996
ON - SITE EFFECTS OF SOIL EROSION IN TEA LANDS IN KANDY DISTRICT - AN ECONOMIC ASSESSMENT.

H S Premachandra
Central Environmental Authority

Soil erosion is a serious problem in many parts of Sri Lanka. It has numerous impacts on crop productivity, economic growth, income distribution, food production and long term environmental considerations. Tea lands in Kandy district are highly susceptible to soil erosion due to several factors such as sloping sites unstable soils, high rainfall and improper land uses. This study focused on an economic assessment of on-site effects of soil erosion in tea lands in Kandy district. Secondary data on soil erosion rates were used and Replacement Cost Approach was used to assess on-site damage due to soil erosion. This approach was based on the costs of replacing productive assets that were damaged because of improper on-site management practices.

Net Present Value (NPV ) criterion was used to examine the economic feasibility of soil conservation measures such as stone walls, Contour drains and leader drains, and biological conservation (Sloping Agricultural Land Technology, SALT). This analysis considered a 10 percent discount rate and a 5 year planning period.

This study considered three categories of vegetatively propagated tea ( VPT1 , VPT2 , VPT3 ) and another three categories of seedling tea ( ST1 , ST2 , ST3 , ) to assess on-site damage due to soil erosion caused by tea cultivation. According to the assessment, on-site damage due to tea cultivation in Kandy district is Rs Mn 1568.1 ( 1.5681 Rs. billion ) . Per hectare replacement costs for VPT1 ,VPT2 , VPT3, are Rs 1919, 21016, 45654 while for ST1 , ST2 , ST3 are 7030, 14322, 128747 respectively.

This study revealed that internalization of on-site cost of soil erosion is acceptable if proper soil conservation methods are used under private accounting of conservation programs.

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Department of Forestry and Environmental Science,
University of Sri Jayewardenepura,Sri Lanka. 1999. All rights reserved.