1

4.3.3 Agricultural & Economic Aspects (ADB Section)

This section deals with the possible environmental impacts of the proposed Colombo-Matara
limited access speedway from Kurundugahahetepma to Matara on employment, agriculture,
tourism, income distribution, structures, business volumes and property values. The impacts
will be first identified, then quantified and finally valued using the available analytical
techniques.
The following impacts are taken into consideration in this section.
Receptors Type of Impact agnitu!e
. !mployment "irect negative impacts
"irect positive impacts
#ndirect positive impacts
#ndirect negative impacts
$
M
M
M
%. &gricultural production and
productivity
"irect and indirect negative impacts M
'. Tourism "irect and indirect positive impacts $
(. #ncome distribution #nduced secondary positive impacts )
*. +tructures "irect negative impacts
#ndirect negative impacts
$
)
,. -usiness volume "irect positive impacts
#nduced secondary positive impacts
$
$
.. /roperty values #nduced secondary positive impacts $
0. 1ural economy "irect negative impacts in construction
phase
#nduced positive secondary benefits
M
$
4.3.3." Employment
#egati$e Impacts on Agricultural Employment%
&gricultural !mployment along the trace2
&s the trace is mainly traverse through an agricultural area from Kurundugahahetepma to
Matara estimated land acquired for the construction is around (.% ha of which '% ha of paddy
lands and '( ha of uplands and other types of lands. To estimate the employment losses
under different crops, estimates drawn by different authorities such as "epartment of
&griculture, Coconut 1esearch #nstitute, and 1ubber 1esearch #nstitute were used as far as
possible. $owever, it is impossible to estimate the labor use for mi3ed homestead gardens due
to different cropping combinations and different holding si4es. Moreover, many agricultural
laborers are not full time labors and they are engaged with different activities simultaneously.
"isguised unemployment is a common phenomenon in agricultural sector, especially in paddy
cultivation and livestock.
&gricultural land e3tent along the trace
Total number of persons annually employed in agricultural activities in the pro5ect area was
2
estimated using average demand of labour for each activity of different crops. +tudy revealed
that around 67 of the paddy lands along the trace in both 8-#C and &"- sections are totally
abandoned during last 6 9 %6 years as a consequence of soil degradation, poor drainage, low
productivity, labour scarcity or several other reasons. #n addition to that normal cropping
intensity is *6. &nnual labour demand of tea, rubber, coconut was estimated to the most
pessimistic value which is ma3imum labour demand.
Table 2 "istribution of different crops in acquired land along the trace from
Kurundugahahetepma to Matara and :ale port access
Crop &"- +ection :all &ccess
/addy 6'.0 *.%
Tea *(
1ubber 6%..
Coconut 0
Cinnamon ;..
$omestead :arden 60 ..(.
<nproductive /addy %0.* (.%
!stimated annual labour demand for a hectare of paddy is ;. man days if the cropping
intensity is *6. &verage annual labour demand for tea, rubber, coconut and cinnamon is ,;0,
**%, % and %0 per hectare respectively. =or the mi3ed home gardens it is not possible to
estimate the number of labour units required as the plots are very small and variety of cropping
systems.
Table %2 !stimated labour replacement due to acquisition of lands along the trace. >Man days
per year?
Crop &"- +ection :all &ccess
/addy %6((; 6%(
Tea '.,;% 6
1ubber *,,;6 6
Coconut ;,0 6
Cinnamon %* 6
$omestead :arden -- --
<nproductive /addy -- --
Total man days .;( 6%(
Total employment
equivalent (; (
Total number of estimated direct employment loss in agriculture along the acquired trace is
.;( man days in &"- section and 6%( in :alle port access road. #t is equivalent to (; full
time employees in &"- section and ( in :alle port access.

The actual number of people employed in agriculture along the road trace may e3ceed the
estimated number due to the prevalence of disguised unemployment and under-employment@
3
two common phenomena characteri4ing rural agrarian communities.
Therefore, the market value of the annual loss of employment along the trace from
Kurundugahahetepma to Matra is estimated as Rs. million 4".&' and in :alle /ort access Rs
million (.3'. &nnual economic loss of employment is Rs. million 3"."( in &"- trace and Rs.
million (.&) in :alle port access after correcting for disguised unemployment. >Correction
factor A6..*'*?
#egati$e impacts on ot*er employment categories
. #mpact on other employment categories such as those employed in the private and public
sector is minimal provided that employees who are displaced due to land acquisition are
relocated in locations from where their work places can be accessed without much difficulty.
$owever, if people who are self employed and those who find employment in the casual labour
market are displaced due to land acquisition, they may confront with different market situations
unless they are relocated within their village. Bevertheless, it is difficult to predict the net impact
on employment in respect of the above employment categories.
%. #n +alle,port access at Bugaduwa there are about *6 workers are involved directly and
indirectly in coir industry based on coconut husk. &s the access road is traverse through the
fermentation pits of coconut husk the environment will be totally damaged during construction
stage and the people will loose their employment if preventive actions are not to be taken.
!stimated market value of employment in coir based industry is about Rs. million "4.4 per
year.
-ositi$e impacts on employment !uring t*e construction p*ase%
"uring the construction phases, a large number of people will have to be employed by the
contractors for road construction work and, this will be a direct positive impact of the pro5ect on
employment. $owever, the cost breakup of the pro5ect, as given in the economic feasibility
study, does not indicate the number of labour units required for road construction. Therefore, no
attempt is made to quantify and value this impact.
1oad maintenance work over the entire pro5ect life too demands employment of additional
hands, which should add to the direct positive impacts on employment.
$owever, with the pro5ect a large number of employment opportunities will generate, especially
in the construction period and then a large number of direct and indirect employment in the
operation stage. The employment generation will e3ceed the employment loss of agricultural
sector. Couth in the area, who are reluctant to do agricultural 5obs due to their attitudes, will
have a good opportunity to find a non agricultural 5ob.
4.3.3.& Agriculture
4
Direct negati$e Impacts on Agriculture%
To estimate the impact of land acquisition for the proposed pro5ect, average yields of each crop
which estimated by the relevant authorities and the prices for year %66' published by the
Central -ank of +ri )anka were considered. &verage paddy yield in +outhern region was %;%6
kg per hectare for the Maha season and '*66 kg per hectare for Cala season. $owever about
D of the area is not cultivated in Cala season. &verage annual production of coconut lands in
+outhern /art of the country is ,6%% nuts per ha per year in the year %66% which is below the
national average of ,((.
&verage tea yield is the southern region is the highest in the country. #t is %%.; kg per ha per
year which is higher than the national average of ,(; kg per ha. &verage rubber yield in the
region is .%' kg per ha per year. /roductivity of cinnamon is about *66 kg per ha per year.
"irect impact on paddy production
/addy &"- +ection :all &ccess
&rea >ha? 6( *
Cield Maha >kgE
ha? '*'' '*''
Cied Cala
>kgEha? %;%6 %;%6
&nnual
/roduction >kg? *0%.' %*;,(
&nnual 1eturn
>1s? 06.(.66 (6(*'
:ross Margin
>1s million per
annum? 6.,* 6.6'
"irect impact on Tea production
Tea &"- +ection :all &ccess
&rea >ha? *(
/roduction>kgEha
? %%.; %%.;
/rice >1sEkg? %%6 %%6
1eturn >1s? %.6.(*%6 6
Cost >1sEkg? ,'.% ,'.%
:ross Margin >1s
million per
annum? ,.;; 6.66
"irect impact on 1ubber production
1ubber &"- +ection :all &ccess Total
&rea >ha? 6%.. %,%..
/roduction>kgEha
? .%' .%' .%'
5
/rice >1sEkg? 6'.0 6'.0 6'.0
1eturn >1s? ..6.',..;0 6 ;.(;*%
Cost >1sEkg? ,'.' ,'.' ,'.'
:ross Margin >1s
million per
annum? '.6 6.66 ..,;
"irect impact on coconut production
Coconut 8-#C +ection &"- +ection :all &ccess Total
&rea >ha? .% 0 6 ;.%
/roduction>nutsEha
? ,6%% ,6%% ,6%% ,6%%
/rice >1sEnut? .' .' .' .'
1eturn >1s? .,%((.'% *(('00.0 6 '6,*''.%
Cost >1sEnut? (. (. (. (.
:ross Margin >1s
million per annum? 6.%0 6.%6 6.66 6.(.
"irect impact on Cinnamon production
Cinnamon 8-#C +ection &"- +ection :all &ccess Total
&rea >ha? %.' ;.. %%
/roduction>kgEha
? *66 *66 *66 *66
/rice >1sEkg? ';'.% ';'.% ';'.% ';'.%
1eturn >1s? %(006 ;6.6%6 6 ('%*%66
Cost >1sEkg? ;6 ;6 ;6 ;6
:ross Margin >1s
million per
annum? .%* 6.;; 6.66 %.%(
&lthough it is difficult to generali4e the output of homestead gardens average gross margin out
of the average home garden with a few coconut trees, fruit trees, spices, supplementary
vegetable, spices and condiments were evaluated in the sample survey and gross margin were
generali4ed to 1s..666 per hectare.
"irect impact on production oh homestead gardens
$omestead
gardens
8-#C +ection &"- +ection :all &ccess Total
&rea >ha? ;0.. 60 ..(. %%(..
:ross Margin
>1s million per
annum? .,0 .0( 6.'6 '.0
6
"irect impact &gricultural production >1s million per year?
8-#C +ection &"- +ection :all &ccess Total
/addy 6.0% 6.,* 6.6' .*6
Tea %.%( ,.;; 6.66 ;.%'
1ubber (.,; '.6 6.66 ..,;
Coconut 6.%0 6.%6 6.66 6.(.
Cinnamon .%* 6.;; 6.66 %.%(
$omestead
garden .,0 .0( 6.'6 '.0
Total 6.;, '.,0 6.'' %(.;(
Fhile estimated crop outputs will give a general picture of the annual production potential of
agricultural land under the 06 m trace, there is a significant variation in yields among "+
"ivisions and even among plots within a particular "+ "ivision. =or e3ample, the estimated
paddy output in Malimbada '(%, kg in Matara "+ "ivisions are overestimated because an
average cropping intensity of *67 has been assumed for all lands for this estimation although
the actual cropping intensity of most of the paddy land in Malimbada and Matara appro3imate
667 or even less. Moreover, in Kodagoda yaya, the paddy yield is the highest >'*66 kgEha?
along the trace.
/ercentage distribution of direct impact &gricultural production
8-#C +ection &"- +ection :all &ccess Total
/addy *(.. ('.' %.6 ,.6
Tea %(.' .*.. 6.6 '..6
1ubber ,.6 ';. 6.6 '6.0
Coconut *;., (%., 6.6 .;
Cinnamon **.0 ((.% 6.6 ;.6
$omestead
garden ((. (0.' ..; *.'
Total ('.; *(.; .' 66.6
Gut of total loss of income from agricultural production, &"- section contributes the highest
portion >**7? while 8-#C section contributes only ((7. Tea is the most significant cash crop in
the trace as its gross margin is high. &round .,7 of the total tea lands along the trace are
located in the &"- section.
!3pected indirect losses of agricultural income
!specially in the construction phase, due to e3cavation of soil, blocking the irrigation and
drainage canals, e3posing peat to the air and rain would make some adverse impacts
especially on paddy fields.
. "epletion of ground water level due to deep e3cavation of soil especially in the areas of
Kokmaduwa and "eegoda in &"- section and in many other locations. #t may cause yield
7
reduction in perennial crops and also water scarcity for other field crops. $owever, due to rainy
climate during the last few months there were no records of depletion of ground water level and
loss of yield.
%. "uring the period of earth work, disruption of water ways and drainage canals may cause
flooding of paddy lands and yield would be completely or partially lost. Gn the other hand, as a
significant length of the road is running through paddy lands, soil and silt transported by runoff
water may damage the crop. /ermanent damage of a cultivated paddy lands by siltation,
flooding or any other accidental damage worth about 1s. %66 per perch and it varies depending
on the stage of the crop and the location.

'. /artial yield loss of paddy fields due to #ron to3icity caused by o3idation of e3posed e3tracted
deep soil and runoff water.
(. /artial or complete crop damage of paddy lands due to e3posed peat in dumping grounds
closer to the paddy fields >G3idi4ation of peat may generate carbonic acids?
*. "uring the earth work, transport of materials by heavy vehicles may generate dust clouds
and it will reduce the quality of yield of tea, vegetable and other crops in ad5acent lands.
,. Temporary E accidental disruptions of access roads during the construction phase would
make problems for transporting of farm products.
.. "eletion of the quality and the quantity of gra4ing lands due to land acquisition, acidic soil
due to peat, dust and silt decomposition.
0. "ue to depletion of quality of soil, it is evidence that about 6m length from the base of earth
filling will be unsuitable for cultivation of paddy. The estimated area along the &"- section is
.., ha within the 6 m length. Therefore, e3pected annual loss is about Rs.4).(( per year.
/ositive e3ternalities on agriculture and fisheries2
The proposed highway, by enabling speeding transport of produce, will have a positive
influence on agriculture by way of e3panding markets, reducing wastage during transportation,
timely availability of inputs, quicker disposal or produce, etc. The outputs of agriculture and
fisheries are highly perishable and large amounts of produce go waste during transportation of
produce from southern areas of the country to large urban centres like :alle, Kalutara and
Colombo. The proposed highway provides the channels of marketing with opportunities of
quicker delivery of produce which will enable them to reduce marketing costs accrued to
wastage. Moreover, produce like fish, which deteriorates fast, do not often reach interior areas
of the country due to the difficulty of quicker delivery of the produce with the e3isting road
network. The proposed road, with interchange points linking important markets in the interior
regions of the country to the producing areas, will ensure availability of produce like fresh fish
in such markets. The consumers in these areas will reap benefits due to the presence of
important consumption goods that were not previously available and, producers will benefits
due to the increased demand created by consumers in the interior regions.
8
/ 3 0 4 Impact on Tourism%
#t is envisaged that the construction of the proposed limited access highway will have a positive
impact on tourism >a positive e3ternality? due to factors such as savings on travel time, better
transport services made available, etc. #n order to find out whether the proposed highway will
have a significant impact on tourism, a study was carried out at $ikkaduwa and <nawatuna
tourist villages where a structured questionnaire was administered to a sample of tourists and
for owners of restaurants and hotels in Gctober, %66* to elicit information on places of interest
in the south of +ri )anka.
+tudy revealed that the problems of road conditions from Colombo to :alle and $ikkaduwa,
road congestion, time consuming and congestions and road accidents at hotel areas are the
main barriers to develop the tourism in the +outhern coastal belt. More over, they all agreed
that there is a une3ploited potential to improve the echo-tourism in rural areas and in coastal
belt of the southern region.
$owever, the tourists who are coming for holidaying do not bother about time as they have
come to spend time leisurely. The only problem is the unpleasant environment due to road
congestion on the &% road. -ut the tourists who are coming for business purposes >around
67? are interested about highway and they will select the highway for their traveling.
The proposed highway may have positive impacts on tourism development >and therefore
tourist earnings? if tourism-related facilities are developed along with the construction of the
highway. There is a potential to develop echo-tourism in Kottawa forest area closer to proposed
interchange at /innaduwa.
&lthough the proposed road facilitate the tourism in the +outh, it is not possible to predict
increased number of tourists due to the pro5ect. $ence, quantifying the benefits on tourism of
the pro5ect is irrational in addition to reduced travel time, fuel and road accidents.
4.3.3.4 Income !istri1ution
-addegama, /innaduwa, "eegoda, Kokmaduwa and :odagama are the proposed
interchanges of the road in &"- section. There is a big disparity of income distribution between
developed areas and rural areas with less access to modern facilities. &verage family income of
urban areas >Colombo district is about 1s.%666 >1s.(;%' per-capita? per month while the
average family income is about D of that in rural areas >1s.6*66 per family or 1s.%(6, per-
capita? in Matara district. That disparity is mainly due to limited access to opportunities as a
consequence of poor infrastructure. =ield survey revealed that in -addegama, /innaduwa,
"eegoda, Kokmaduwa and :odagama average family income were about 1s.0%66, .(66,
.%*6, ,.66, and 0;66 per month respectively. #t is not rational to plan to uplift the average
income to the average of Colombo district with the pro5ect. Therefore, average family income in
Mirissa, Feligama, Kahawa and "odandoowa which are the semi-urban areas in Matara and
:alle district were considered as a pro3y for a southern city with good road access. &verage
family income of above places were 1s. '*6 per month >+ample si4e A,6?. &verage si4e of a
:B division in &kmeemana, #maduwa, Felipitiya and Malimbada "+ divisions were '66
families. Therefore, assuming the interchanges will be developed within a period of five years,
e3pected increase of poor categories was estimated as Rs. million ... neglecting the spill over
9
effects of the development in to surrounding areas.
#t is important to note that among affected families, following categories will be severely
affected due to land acquisition@
. )ost of total land area and house and employed as casual agricultural labor in the
same area.
%. )ost of total land area or a substantial portion and entirely depend on agricultural
income such as tea, cinnamon on the same land.
'. )ow income weak families with children and old aged people
(. =emale headed households
*. =amilies who earned a substantial portion of income from land based subsistent
activities such as reed industry, vegetable production, inland fishing and animal
husbandry
,. =amilies who were keeping small scale retail shops in the village area
=ollowing table shows the displacement of different kinds of families in 8-#C section, &"-
section and :alle access road. "etailed information according to "+ divisions is available in
&nne3 9 .
Title2 Bumber of affected families in different categories
+ection $omestead
garden
-usiness <ntitled owners +ocially weak
families
8-#C (* *, '%
&"- '%6 %; 0, ;0
:alle &ccess ; , %, *
Total .(( ; %(( %(
)and owners without proper titles are mainly concentrated in -ope-/oddla and #maduwa "+
divisions in &"- section. #n #maduwa and -ope- /oddala, number of week families is higher
than other areas. Totally %( families are categori4ed under weak families and they should
be properly treated while paying compensation and relocation.
&t the time of land acquisition, land owners with substantial land areas and well developed
houses will get a large amount of money to start their life in a good environment. $owever,
rural poor will not get a substantial amount as compensation as they donHt have proper titles
and well built houses. Moreover, many of poor families fulfill their daily needs >curry leaves,
5ak, coconut, green leaves..? from the homestead gardens after relocation they have to pay
for all kinds of foods at the new place.
#ncome of the young generation would be increased in the construction phase as they can
provide their labour force in different activities. Moreover, land owners of close pro3imities to
the interchanges >access points? can sell their lands at higher prices and can earn a good
income. This phenomenon can be seen at :odagama, Kokmaduwa, "eegoda and
/innaduwa in &"- section.
4.3.3.. Structures%
& large number of structures - both permanent and temporary, that are present along the
10
proposed road trace of 06 m will have to be demolished once land is acquired for the pro5ect.
!stimated number of different building structures is summari4ed in the table below. &s the
buildings along the trace are already removed either by 1"& or owners themselves, it was not
possible to estimate the real value of the structures that are to be removed. =ollowing table
summari4es different buildings which were demolished or to be demolished along the trace.
&nne3 % shows more detail of building structures.
Table2 1esidential and business structures along the trace to be removed
+ection Total
number of
$ouses
-usiness
premises
+emi
-permanent
structures
Temporary
structures
8-#C section *;. .% '. %
&"- section ,0 . *' %*
:alle &ccess '. 0 ( .
Total '* * ;( ((
#t should be noted that in the 8-#C section, especially in Maharagama "+ division, average si4e
of the houses is the largest along the entire trace which was %%%0 square feet per house.
Bumber of houses to be removed is highest in -andaragama followed by $omagama and
"odangoda divisions which was 6, .6 and respectively as the trace is running through
semi-urbani4ed areas in the 8-#C section. -usiness premises reported the highest number in
Maharagama "+ division >'6? followed by $omagama division >0? in 8-#C section
#n 1"& section, Karandeniya >%?, #maduwa >6?, -addegama >'?, &kmeemana >'? and
Felipitiya are the main centers with a large number of business places and houses.>&nne3-%?.
&s the :alle access road is running through a populated semi-urban area, the number of
houses and business premises were '. although the length of the trace is only (.' km.
#n 1"& section, semi-permanent and temporary houses were found as many people had built
such houses in their lands in order request compensations as they were aware about the trace.
Bumber of temporary and semi-permanent houses in #maduwa "+ division was (6 which was
the highest followed by %6 in &kmeemana and 6 in Felipitiya.
&long the :alle access road also % buildings were temporary structures with an average si4e
of 06 square feet.
1oad "evelopment &uthority has estimated the average replacement costs of structures
irrespective to the quality of the buildings as 1s. 666E ft
%
, 1s %*6 E ft
%
and 1s (666E ft
%
for
houses, other structures and business premises respectively. &ccordingly the estimated
replacement costs of structures in the proposed trace are given in the table below.
Table2 !stimated replacement costs of structures >1s. Million?
8-#C section
Type of building &rea >ft
%
? Cost per ft
%
1eplacement cost
$ouses (;'6(, 666 (;'.6(,
11
Gther buildings %*6 6
-usiness premises ,., (666 %((..6(
Total of 8-#C +ection
.'...*
1"& +ection
Type of building &rea >ft
%
? Cost per ft
%
1eplacement cost
$ouses (66;, 666 (6.6;,
Gther buildings ;60. %*6 .'*;
-usiness premises '66' (666 %6.(%
Total of 1"& +ection
*'%.0,.
:alle access road
Type of building &rea >ft
%
? Cost per ft
%
1eplacement cost
$ouses .'0* 666 ..'0*
Gther buildings *6 %*6 6.00
-usiness premises .**6 (666 '6.%66
Total of :alle access road
'....'
&long the entire trace
Type of building &rea >ft
%
? Cost per ft
%
1eplacement cost
$ouses ;6*%. 666 ;6.*%.
Gther buildings ;%'. %*6 .*(,
-usiness premises ;00%; (666 ';*.',
Total of entire trace
'60.'0;

Most of the structures under the road trace are of the permanent type with tiled roofs. The total
value of the structures worked out to be appro3imately 1s million '60.( and in the 1"&
section it was Rs million .)(.'4 . #t should be noted that these values are based on the cost
price of material that go into the construction process rather than the market values which are
highly influenced by the location. The above figure represents the loss of value to the society of
demolishing structures for road construction. $owever, with information from relevant sources it
was found that *6 7 of the materials used for the construction of temporary houses >planks,
rafters.. etc? , ,67 of materials used for the construction of semi permanent house, and %*7 of
the materials used for the construction of a permanent house can be reused and therefore, it
should be deducted from the social cost. Therefore the total cost of the above structured can be
estimated as 1s. million 4&).23 in &"- section.
"ue to the fact that markets are imperfect, shadow prices will have to be used to convert the
market prices into economic prices. +ince an array of inputs go into the construction of houses,
the market prices are multiplied by the average conversion factor for the economy, which is
6..0*. The economic loss arising from demolishing structures was estimated as Rs. illion
33..2' in ADB section.
12
#n addition to direct losses of structures due to acquisition for the road, steep slopes created in
hilly areas along the trace >Kokmaduwa, "eegoda, Kabaragala, /innaduwa would reduce the
values of structures and make damages. Iibrations due to use of heavy vehicles and
machineries, rock blasting also would damage the e3isting structures along the trace. "ust
formation, water lodging in low line areas and earth embankments also damage the structures
although it is very difficult to estimate the real value of such damages.
4.3.3.' Business 4olumes an! Ta5 Re$enues
#t is envisaged that the construction of the proposed highway will induce the development of
industries, residential areas, markets and associated infrastructure facilities, which fall under
positive e3ternalities of the pro5ect. +uch a wave of development activities are likely to take
place in the neighborhood of the interchange points rather than in other places from where the
road can not be accessed.
&t the time of construction phase, providing employment opportunities for different categories of
labor force in the area will improve their purchasing power and demand for commodities.
$ence, the business volume of +outhern cities will rise. #n addition to that new businesses will
start to cater demand for food and other utilities of the large workforce involved in construction
activities.
&fter construction of the road it is envisaged that the tourist industry and :alle harbor would be
developed with improved access. !mergence of urban centers with increased business
activities would enable the government >the local authorities? to earn revenue from the
collection of ta3es based on number of business enterprises in different categories irrespective
to business volume of each enterprise.
4.3.3.) /*anges in -roperty 4alues%
Gne of the important positive e3ternalities of road pro5ects is the increase in property values in
the neighborhood which arise from new market links created and development activities
emerging therefrom. $owever, in the case of limited access highways which have very little
influence on property values e3cept at interchange points, one may e3pect the property values
to decrease in areas from where the highway can not be accessed because the highway will
generate negative e3ternalities such as noise. Cet, this theory, although may have relevance to
developed countries, is not applicable to developing countries like +ri )anka, where people
living in rural areas, with very little facilities for creation, derive use values by observing the
movement of vehicles along the roads. This is quite evident in the e3isting :alle road, where
the residents along the road, rather than building up their dwellings in a way to minimi4e dust
and noise from the road >defensive e3penditure?, have purposely e3posed the verandahs of
their houses to the road. #t is apparent moving vehicles that cause noise and dust does not
generate negative e3ternalities, but may even generate positive e3ternalities. #n fact, the
proposal of the Colombo-Matara limited access highway, although has not completely
materiali4ed yet, has caused property values along the road trace to rise.
Gbservations in :odama >Matara?, "eegoga >:alle-&kuressa 1oad and /innadwa >:alle?
have proved that the values of lands during last two years have increased by four five folds
compared to increases in other areas. $edonic value method was used to find the impact of
13
proposed road on property values at in surrounding areas of interchanges. +urveys conducted
in /innaduwa and $iyare in :alle district, :odagama and Thihagoda in Matara district,
"odangoda and -ombuwala in Kalutara district, =ound that the differences of land values
between the areas closed to interchanges and similar other areas were varied between 1s.
6666.66 to 1s '*666 per perch. The difference was highest in :odagama >1s.'*666? and
lowest in /innaduwa >1s.6666?.
Bot only in interchange areas, but also in other areas along the trace, the land values have
been significantly increased due to vicinity of the trace and the service road although the
highway is not free to access.
Moreover, with the trace, interchanges and service road agricultural lands which worth about
1s.%*6 per perch will be converted to residential and commercial lands which is about
1s.'*666 per perch in case of upland. Fithin the boundary of D km from the middle of the
trace total upland area was about %(; ha and paddy land area is about .6(.,ha in &"-
section. &ssuming that the value of uplands along the trace will be converted within a 66
meters region from the proposed trace the estimate of increased value of upland is Rs. million
"323.3 in ADB section. The estimate was drawn in the most pessimistic view and the
increment of values in paddy lands and beyond the limit of 66 m of the road boundary was not
considered.
4.3.3.3 Rural Economy
#n additions to the impacts of the proposed road in different stages on the agricultural sector,
structures, business volume, employment and tourism there are several other aspects to be
considered especially in the construction stage.
. Forsening of rural roads and accidental blockings due to use of rural roads by heavy
vehicles and machineries of road construction.
%. #nconveniences and delays for school children and office workers due to clogging of roads
by vehicles and machineries of the highway. This problem persists in -ogahagoda and
/innaduwa in 1"& section.
'. )oss of business in small retail shops in rural areas due to severance of the customers as a
consequence of proposed road.
,. "eteriorating and ground water quality and deepening of the wells in hilly areas along the
trace.
.. &ccidents for animals and children in the areas which created steep sloes due to earth work.
0. #nconvenience due to dust formation and water lodging.
;. "ifficult to feed animals >especially ranching buffaloes? due to loss and deteriorating of
gracing land and also due to severance of gracing lands with limited access highway.
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6. 1educing the water levels of wells for drinking water, drying up of drinking wells due to deep
e3cavating. >"eegoda, Kokmaduwa in &"- section?
. "eteriorating of quality of ground water due to silt, dust, disturbed ground water flows and
o3idi4ation of iron minerals in law line areas of in -oth 8-#C and &"- sections.
itigatory easures%
. &gricultural /roductivity of the lands bordering the proposed road, especially the paddy lands, is likely to fall during the
construction period due to soil erosion. Therefore, the contractor should be asked to adopt measures that minimi4e
soil erosion during the construction period in order to prevent any loss of value due to reduced agricultural productivity.
Gtherwise the farmers should pay a substantial amount for their damages. >1s. *6.66 per perch of complete loss of
cultivated paddy land and 1s. *6.66 per perch for not sowing >-ut land preparation has been done? due to problems
occurred with construction activities of highway.
%. +ince tea is particularly vulnerable to dust which may cause degradation of quality, the contractor should ensure that
dust emerging from various operations and moving vehicles that carry soil is kept to a minimum by taking proper
precautions in handling cut and fill operations within the vicinity of tea lands.
'. /rovision of drainage facilities becomes very important in low lying lands because water logging, especially in paddy
lands bordering the proposed road may cause serious losses in yields. Therefore, proper drainage structures should
be constructed to avoid any losses in agricultural output.
(. Fhenever the construction of the proposed road lead to division of fertile agricultural land, it is necessary to adopt
measures that preserve the productivity of blocks of divided land. Gne of the strategies that can be adopted to
preserve the productivity of the divided blocks of fertile agricultural land is to provide access to such lands from close
by overpasses or underpasses >by constructing small access roads? if investment on such means of access is unlikely
to e3ceed the e3pected social benefits.
*. #t is of paramount importance to provide the people with access to agricultural lands, work places and markets by
constructing overpasses or underpasses across the proposed road >which will help preserve the e3isting road net work
too?. Cet, people may still find problems of access during the construction period. Therefore, the contractor must make
sure that he provides the people with temporary means of access to land and work places in order to avoid such short
term negative impacts on the society.
,. Fhen acquisition of land leads to displacement of people belonging to various employment categories, precautions
will have to be taken in relocating them once relocation sites are identified. 1elocation may bring in additional benefits
to some employees and additional costs to the others, depending on factors such as the status of factor markets,
product markets, infrastructure facilities, access to work places, etc. Therefore, in relocating people, it is necessary to
get the proper consent of the people affected in order to avoid any unforeseen social costs imposed on some
employees.
.. &s a measure of equity, those who lost employment due to the pro5ect and seek employment should be given
additional weights when various vacancies for employment are filled within the affected areas.
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0. <se of contractorsH own access roads for transporting materials instead of using e3isting rural roads in the area.
;. &void rainy seasons in earth work closer to paddy lands and water bodies in order prevent from moving soil through
run off water
6 &ppropriate soil conserving structures to prevent movement of soil to ad5oining lands.
. !3cavated peat and boggy soils should not be dumped closer to paddy fields and water bodies as acidic conditions
created due to o3idi4ation of peat may be harmful to paddy cultivations and aquatic resources.
%. #n the areas tea and vegetable, green belts should be maintained to protect the crops fro dust and various forms of
to3ic substances of vehicular emissions.
'. <se of appropriate structures to protect the surrounding lands from the soil transported with runoff water.
(. #n Bugaduwa area of the :&1, it is recommended to use appropriate measures to maintain the quality of water in
coconut-husk-pits in order to protect the employment opportunities of the people in coir industry.