Abstract
Sri Lanka showed proven history of conserving richly endowed habitable natural capital that offers many eco-system services and essential launching pad for fast –track growth. This endowment could bring in desired economic and ecological improvements to living standards and for the well- being of future generations by sensibly put into sustainable use. Under the present development activities, country is facing major challenges of increasing severe climate change impacts, energy insecurity and ecological scarcity. Thus, present use of natural capital, carbon sequestration cyclic activities and forest enterprise are not fulfilling the conditions necessary for sustainability. International initiatives that have been taken and entry points for sustainable forest management and establishing of modern forest technologies are briefly discussed in this position paper to scope expansion of forestry enterprise development strategies. Thus, right policies for setting up right institutions of “Forest Development Authority” and “Forest Exchange System” and inter institutional set up of “Modern Forest Technology” for action in plan is justified.
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