3Ps Sri Lanka Final Report: Supporting Food and Energy Security & Livelihoods Through Strategic Watershed Management

This technical report describes the People, Planet, Prosperity (3Ps) project in Sri Lanka, which aimed to enhance watershed investment programs through natural capital approaches -- supporting both water and energy security and sustainable livelihoods. Through modeling ecosystem services and an optimization analysis, the pilot focused on a proof-of-concept approach to understanding how upstream land use in the Mahaweli watershed can reduce soil loss and resulting sedimentation in downstream reservoirs, dams, and irrigation canals. This pilot effort is a first step in showing what is feasible with this approach. Deeper engagement with local stakeholders and experts would allow for more nuanced and valuable results that could inform potential future investments in sustainable land use and policy and financial mechanisms such as green bonds and carbon credits. The team also engaged local partners from government, academic institutions, and multilateral development banks (MDB) in training and capacity development, laying the groundwork for the long-term integration of natural capital approaches in the country.