An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo

This report applies the Sustainable Asset Valuation (SAVi) methodology to evaluate ecological restoration options for South-West Beira Lake in Colombo, Sri Lanka, focusing on the economic impacts on property values and recreational spending.

• Upgrading wastewater treatment facilities to reduce pollution is identified as the most cost-effective and benefit-generating intervention for South-West Beira Lake.
• Investing in the wastewater treatment system (Scenario 2) is estimated to increase the economic value of surrounding properties by USD 14 million and increase recreational spending by locals and tourists by USD 10 million between 2020 and 2025.
• Dredging lake sediment (Scenario 3) is considered ineffective as a standalone measure because it does not address the continuous inflow of nutrients, resulting in only slight increases in water clarity and no long-lasting economic gains.
• The combination of wastewater treatment upgrades and dredging (Scenario 4) provides the highest economic return, generating a USD 43 million increase in property values and a USD 19.5 million increase in recreational spending between 2020 and 2025.
• A business-as-usual approach (Scenario 1) with no additional restoration investments is expected to result in reduced water quality, a net decrease in property values, and no growth in recreational value.

APA

Wuennenberg,, A. B. P. (2019). An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo. International Institute for Sustainable Development. https://www.iisd.org/publications/report/application-sustainable-asset-valuation-savi-methodology-sri-lanka-assessing

Chicago

Wuennenberg,, Andrea Bassi,Oshani Perera,Laurin. An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo. International Institute for Sustainable Development, 2019. https://www.iisd.org/publications/report/application-sustainable-asset-valuation-savi-methodology-sri-lanka-assessing.

Wikipedia

{{cite report |last1=Wuennenberg, |first1=Andrea Bassi,Oshani Perera,Laurin |title=An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo |publisher=International Institute for Sustainable Development |date=31 August 2019 |url=https://www.iisd.org/publications/report/application-sustainable-asset-valuation-savi-methodology-sri-lanka-assessing |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wuennenberg2019application, author = {Wuennenberg,, Andrea Bassi,Oshani Perera,Laurin}, title = {{An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = aug, url = {https://www.iisd.org/publications/report/application-sustainable-asset-valuation-savi-methodology-sri-lanka-assessing}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }