2Additional Conservator

Sri Lankan forest policy and the forestry sector master plan of 1995 emphasize commercial forest plantation development by private sector management to produce sufficient industrial and other woods to meet increasing demand. However, the nature of forest control and the form of ownership provide an essential link between forest resources and their use. The solution to problems of common access to resources in tropical forest management has often failed to safeguard either forest resources or the livelihood of dependents. The privatization of forest resources has sometimes impoverished the majority while enabling short-term gain for a few whose economic decision making is distant from the considerations of socio-economics and environmental externalities. Sudden and abrupt changes in the control system or ownership may trigger phases of resource destruction or degradation. In the establishment and management of private forest plantations, it is of practical importance to identify the issues and challenges of private forest plantation development. This paper discusses the issues and challenges in terms of available land and selection of lessees, knowledge and plantation culture, commercial incentives and rights, marketing and market development, the pay-off/benefits, and legal and regulatory environment