Economic value of mangrove ecosystems in the Panama village, Ampara district:a case study

Sri Lanka encompasses a high diversity of coastal vegetation, specifically mangroves and these ecosystems have provided a wide array of goods and services, ranging from fishery, forest products and tourism to shoreline protection. The need to assess the economic value of mangroves became more eminent to assist policy-makers and funding agencies in integrating mangrove restoration activities in environmental conservation programs. The study was initiated to estimate the direct and indirect values of mangrove ecosystems and the protection role played at extreme disastrous events such as Tsunami to the coastal communities in Ampara District of Sri Lanka. Information on eco-physical and socioeconomic including various damage costs and dependency on mangrove ecosystems was collected using purposive sampling from 109 households from Panama village which was characterized with well managed and functioning coastal ecosystems where mangroves were relatively intact. The shoreline protection value was assessed by comparing the Panama village with 100 coastal households from villages in Potuvil town where mangrove ecosystem was comparatively degraded due to tsunami. The results revealed a higher mangrove dependence of the Panama villagers with a value of Rs.119, 438/household/year (US$1,171). It was also revealed that estimated incidence of damage costs in areas with degraded mangrove vegetation was significantly greater during the tsunami. The costs of damages to livelihood and property in Potuvil (US$ 13,509) were approximately twenty times the costs of damages in Panama (US$ 623). Field observation also revealed massive destruction to the coastal ecosystem (property and vegetation damages and sea erosion) in Potuvil compared to Panama. Results clearly indicated that areas with intact mangrove ecosystem generate greater economic benefits. The findings also indicate the economic rationale of including mangrove restoration efforts in the environmental conservation programs