PROMOTION OF CORPORATE GOVERNANCE FOR SUSTAINABLE FOREST DEVELOPMENT IN SRI LANKA

Abstract

Forestry offers many market and non-market benefits of subsistence needs, commercialproduction and environmental services. The forests in Sri Lanka are used by many whilemanaged by a few. Hence, the arrangement to govern the multiple interests and needs ofdifferent stakeholders have to be clearly defined or understood. Otherwise, there will be alittle change in livelihood of forest communities and further degrade the remaining forestresources. The key elements of corporate governance are the transparent and equitablerelationships between stakeholders, accountability and participatory decision making.

The papers discuss the problematic issues affecting forest development; the role ofcorporate governance in forest development; and the impacts of improving governanceon sustainable forest development. The major problematic issues are described in termsof the nature of forest resources and the nature of the ownership. The major roles ofcorporate governance are recognized as: the reforms of administrative and political bodythat make and implement forestry and environmental laws; the way these bodiesrepresent and are accountable to forest communities and civil society; and thearrangements that enable forest communities and civil society to enter into dialogue withthe government. The impacts of improving corporate governance would be the balancedpower and decision-making between central government and local government; promotedrelationship between government and forest communities; and developed relationshipswithin the forest communities