Article

Sri Lanka has launched a Payment for Ecosystem Services (PES) mechanism to incentivize communities for protecting and managing ecosystems, drawing on successful models from other countries. The GCF Knuckles Project, spearheaded by the Ministry of Agriculture in collaboration with CIFOR-ICRAF, aims to establish a watershed-based PES framework that connects upstream communities with downstream beneficiaries, such as hydropower companies. This initiative seeks to enhance ecosystem services, boost rural incomes, and incorporate environmental sustainability into national development strategies.