THE IMPACT OF LAND TENURE ON LAND DEGRADATION THE ,CASE OF MATALE DISTRICT

In Sri Lanka, population growth, urbanization and introduction of neo-liberal economic policiesincreased the demand for land rapidly during the last two decades. The irrational allocation oflands and various human-induced activities caused to reduce the productivity of lands drasticallyby damaging the long-term sustainability. The land degradation- induced on-sites and-off siteeffects negatively influence on Gross Domestic Product (GDP), and balance of payment andcreation of employment opportunities in the economyThe ownership of land should be clearly defined in order to encourage investment on soilconservation measures to maintain efficiency in the production process. Despite the privateowned lands, land mobility is restricted in majority of government distributed lands undervarious schemes such as 'Swarnabumi and Jayabumi, under which lands are not transferable.Therefore, the only way to access to lands is to encroach government lands for the landless ruralpoorThe main objective of this paper is to ascertain the impact of land tenure on land degradation,while highlighting the existing policy and institutional failures in the land market. The Naula DSDivision in the Matale District has been selected as the suitable location to conduct this researchproject due to prevailing higher demand for land and encroachment in the area.The analysis of investment behaviour on soil conservation measures in small holder fanningsector in Matale District, have been conducted, by using cross sectional data gathered from thefarm survey and secondary data collected from published sources. An econometric model wasbuilt to analyze the relationship between selected variables such as cost of investment on soilconservation, land tenure, size of land, cultivated crops, soil type and slope ofland.The analysis of the study shows that the absence of a clear land ownership reduces theinvestment of soil conservation. It will indirectly aggravate both on-site and off site damages ofenvironment, which costs to the long-term suitability of the economy. Based on the results,indirect macro (i.e. trade-tariff; fiscal incentives-e.g. 'Pigouvian subsidies' and disincentives-e.g.Pigouvian tax'; and monetory-micro finance) policies, direct macro level complimentaryagricultural and environmental policies and community based projects and programmes can besuggested to reduce the land degradation-induced environmental damages.