In recent years the degradation of the Sri Lankan forests has been the country's most serious environmental issue. Due to the significant amount of land required for the production of tea in one of the major producers of the world, as well as the need for further land for agriculture and irrigation networks, deforestation has been such a key factor within Sri Lanka that it has been a major initiative within the region to halt the decline of the country's natural forests and build up a sustainable timber industry ripe for international investment.
Though historically the country could boast that nearly half of the entire island was covered by forest, between 1990 and 2000 alone Sri Lanka lost more than 1% of the land used for such purposes year on year. However, due to the tight policies and laws implemented by the Government and the contribution made by International Environmental Organisations, the rate of deforestation in the country is now declining by as much as 35% with managed sustainable forests becoming a key contributor to both the local economy and the hardwood timber industry as a whole.
Though large scale planting has only been established in the region since the early 1950's, radical changes in the processes used to grow and harvest timber within Sri Lanka have enabled the industry to benefit from environmental and economical efficiencies that have altered the face of the entire business and developed a sustainable solution that provides an attractive investment proposition that is both economically and environmentally sound.
With the majority of the forests owned and run by the National Forest Department and identified areas across the region now preserved for the production of timber, the perfect conditions in the region have enabled the production of large scale Teak plantations which is now by far the most common type of hardwood grown within this area.
As one of the most durable of the tropical hardwoods, more than 85% of teak produced across the world is used in the furniture industry however its high oil content provides a quality that makes teak equally as vital in ship and yacht building. And with such a shortfall in the supply of teak compared with the level of demand for this natural resource, the value of this timber continues to climb and provide healthy returns for those that invest.
Under the Forestry Sector Development Programme in 1990 the Sri Lankan Government introduced a blanket logging ban across all natural forests and has ensured that illegal logging is not the major issue within Sri Lanka that it has been in other timber producing companies.
And with stability now surrounding the democratically elected government, which is continuing to encourage international investment, particularly in environmentally friendly investments, and increases in population within Sri Lanka and across the globe translating into further demand for high quality teak, the hardwood grown within the region provides a range of reliable and qualified investment opportunities that are going to reap significant rewards for any long term investor.
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