Habitat degradation, pollution, and over-exploitation have threatened Sri Lanka’s rich biodiversity, which contains high levels of endemism. Moreover, an economic crisis that began in 2019 made it challenging to increase public funding for biodiversity. The COVID-19 pandemic aggravated this situation and added pressure to the livelihoods of those dependent on tourism.  

While unplanned tourism expansion can be detrimental to biodiversity, the sector is also a source of opportunities for long-term conservation and local income generation. The Sri Lanka Tourism Development Authority (SLTDA), the United Nations Development Programme (UNDP)’s Biodiversity Finance Initiative (BIOFIN), and other partners developed a National Sustainable Tourism Certification scheme to promote biodiversity conservation and support economic recovery.  

As of June 2025, 37 hotels, one destination, and 204 small and medium enterprises were certified. BIOFIN estimates that this initiative has catalyzed USD 4.026 million in investments for biodiversity.