An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka

The report evaluates four scenarios for the restoration of South-West Beira Lake in Colombo: business-as-usual (BAU), wastewater treatment upgrades, dredging of lake deposits, and a combined approach. The analysis finds that while dredging alone provides limited benefits, upgrading wastewater treatment offers the highest benefit-to-cost ratio (39.67). The combined scenario of wastewater treatment and dredging produces the greatest absolute economic gains, increasing property values by over USD 43 million and recreational spending by USD 19.5 million by 2025. The document recommends recognizing the lake as a tangible capital asset to facilitate blended financing solutions involving public authorities and private investors.

• The business-as-usual (BAU) scenario, which assumes no additional restoration investments, results in further water quality deterioration and a net decrease in property values of slightly more than USD 170,000 by the end of 2025.
• Upgrading wastewater treatment facilities to reduce nitrogen (N) and phosphorus (P) inflows is the most cost-effective intervention, yielding a benefit-to-cost ratio of 39.67. This scenario increases property values by more than USD 14 million and recreational spending by over USD 10 million between 2020 and 2025.
• Dredging lake sediment alone is insufficient for long-term ecosystem restoration because continuous nutrient inflows from untreated wastewater persist. While it provides a benefit-to-cost ratio of 2.09, the resulting water clarity improvements are slight and temporary.
• A combined approach of wastewater treatment upgrades and sediment dredging achieves the highest overall economic benefits, with an estimated property value increase of over USD 43 million and cumulative recreational spending of USD 19.5 million by 2025, resulting in a benefit-to-cost ratio of 9.92.
• The report identifies a potential risk with the use of ionic cupric copper for chemical treatment of lake water, noting it can have toxic impacts on fish, crustaceans, and algae, and may completely alter ecosystem composition and biodiversity.
• To fund restoration, the report suggests a blended finance model, including a dedicated municipal maintenance charge, public-private partnerships for wastewater facilities, or a capital fund supported by beneficiaries such as property developers and investors.

APA

Bassi, A. M., Perera, O., Wuennenberg, L., & Pallaske, G. (2019). An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/savi-sri-lanka-beira-lake-en.pdf

Chicago

Bassi, Andrea M., Oshani Perera, Laurin Wuennenberg, and Georg Pallaske. An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/savi-sri-lanka-beira-lake-en.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Perera |first2=Oshani |last3=Wuennenberg |first3=Laurin |last4=Pallaske |first4=Georg |title=An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka |publisher=International Institute for Sustainable Development |date=August 2019 |url=https://www.iisd.org/system/files/publications/savi-sri-lanka-beira-lake-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2019application, author = {Bassi, Andrea M. and Perera, Oshani and Wuennenberg, Laurin and Pallaske, Georg}, title = {{An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = aug, url = {https://www.iisd.org/system/files/publications/savi-sri-lanka-beira-lake-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }