Launch of Sri Lanka’s First Livestock Insurance Scheme

Safeguarding rural livelihoods and Sri Lanka’s iconic leopard

The United Nations Development Programme (UNDP) in Sri Lanka, under its Biodiversity Finance Initiative (BIOFIN), together with the Wildlife and Nature Protection Society (WNPS), and LOLC, under the guidance of the Department of Wildlife Conservation, launched a pioneering Livestock Insurance Scheme aimed at reducing human–wildlife conflict and safeguarding the endangered Sri Lankan Leopard (Panthera pardus kotiya). The launch event today was attended by Mr. Ranjan Marasinghe, Director General, Department of Wildlife Conservation; Ms. Azusa Kubota, Resident Representative, UNDP Sri Lanka; Mr. Kithsiri Gunawardena, Chief Operating Officer, LOLC; Mr. Graham Marshall, President; and Spencer Manuelpillai, the project lead of WNPS.

This first-of-its-kind initiative provides rapid monetary compensation to farmers who lose livestock to leopard predation, thereby protecting rural livelihoods while reducing retaliatory killings of this keystone species.

The Sri Lankan Leopard is the apex predator of the island’s terrestrial ecosystems, regulating herbivore populations and maintaining ecological balance. As a keystone species, its survival is critical for healthy habitats, while its presence draws thousands of tourists annually to national parks such as Wilpattu, Yala, Kumana and Horton Plains. However, shrinking habitats, forest fragmentation, and poaching have depleted natural prey, forcing some leopards to move into human-dominated areas, where they occasionally prey on livestock. This leads to significant economic losses for rural farmers and has, in many cases, triggered retaliatory killings, further endangering the species.

Reflecting on the initiative, Mr. Ranjan Marasinghe, Director General, Department of Wildlife Conservation, said: “This programme offers a practical and timely solution to a long-standing challenge in leopard conservation. By ensuring affected farmers are compensated swiftly and fairly, we reduce the risk of retaliatory actions and build trust between communities and conservation authorities. It is a proactive step towards securing the future of Sri Lanka’s iconic apex predator while safeguarding rural livelihoods.”

In 2022, WNPS initiated the Multi-Regional Leopard Research and Conservation Project in partnership with LOLC Holdings, establishing six research centres across Panama, Sigiriya, Kilinochchi, Belihuloya, Kalawana and Kotagala. Baseline surveys in the Sigiriya research area revealed frequent livestock predation in villages bordering protected areas and buffer zones. Many of these incidents resulted in unreported retaliatory killings, including poisoning, snaring and shooting.

The Livestock Compensation Programme was developed in direct response to these findings. It aims to provide timely and fair financial support to affected farmers, reducing the economic impact of livestock loss while promoting goodwill towards leopard conservation. It also seeks to strengthen trust between conservation authorities and communities, improve data collection on predation incidents, and inform proactive conflict prevention measures.

From the perspective of the insurance partner, Mr. Kithsiri Gunawardena, Chairman of LOLC Insurance noted: “We are proud to partner with the UNDP, DWC & Wildlife and Nature Protection Society in introducing Sri Lanka’s first-ever livestock compensation policy for leopard-related predation. This pioneering initiative not only addresses an urgent conservation need but also reflects our long-term commitment to safeguarding biodiversity while supporting rural livelihoods. By working together, we can create sustainable solutions where both communities and wildlife can thrive.”

UNDP in Sri Lanka, through its Biodiversity Finance Initiative (BIOFIN), will cover the cost of the insurance premium, with LOLC Holdings acting as the scheme’s insurance provider. In the event of livestock loss due to leopard predation, affected farmers can report the incident to a designated WNPS regional officer. The Department of Wildlife Conservation, together with veterinary and Grama Niladhari officers, will then conduct a prompt verification and assessment. Once eligibility is confirmed, claims are processed without delay, and compensation is transferred directly to the farmer, typically within 72 hours of verification.

Speaking on the programme, Azusa Kubota, Resident Representative, UNDP in Sri Lanka, emphasised that UNDP’s contribution goes beyond financial support. “We are strengthening the design, delivery, and reach of this initiative, including the rollout of a targeted grassroots communication campaign to effectively engage farmers, veterinary officers, and wildlife conservation staff. Building on the past work of BIOFIN and wider UNDP initiatives, we help embed the insurance scheme within national policy frameworks and test innovative mechanisms, including financing tools, to advance the SDGs, especially those linked to protecting life on land and building sustainable communities.”

Beyond immediate relief, the programme promotes preventative measures such as predator-proof night-time enclosures, communal livestock pens for shared overnight housing, and an innovative ‘Cattle Bank’ system, offering replacement animals instead of monetary payouts. These initiatives aim to reduce livestock losses, prevent ‘revenge killings,’ and foster coexistence between people and leopards.

Graham Marshall, President of the Wildlife and Nature Protection Society, said: “Lasting conservation depends on long-term solutions that benefit both people and wildlife. This compensation programme is one such initiative—practical, science-based, and rooted in the trust we build with communities over time.”

Adding to this, Spencer Manuelpillai, Project lead-WNPS, guiding the programme from concept to implementation, said: “This initiative reflects the WNPS’s commitment to turning research findings into real-world solutions. The need for such a programme emerged through the LOLC–WNPS Multi-Regional Leopard Research and Conservation Project, which highlighted livestock predation as a major driver of conflict. Rather than discussing the issue endlessly, we chose to act—developing a pioneering, practical mechanism that addresses a long-standing challenge in leopard conservation while supporting the communities who share their landscapes.”

Conservation is a two-way path; people need leopards to maintain ecological balance, and leopards need people to ensure their survival. By recognising the economic realities of rural life and valuing biodiversity equally, this initiative represents a holistic approach to protecting both livelihoods and Sri Lanka’s unique natural heritage.