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This study aims to generate information, which can contribute to an understanding of the economic benefits of wetland conservation, economic costs of wetland degradation and loss in Muthurajawela, Sri Lanka. It also aims to document ways in which economic concerns can be integrated into biodiversity assessment procedures and used within the context of wetland procedures. The information present here is based on the assessment of economic value of Muthurajawela Wetland Sanctuary, a joint exercise between IUCN Sri Lanka Biodiversity Programme and Asia Regional Environmental Economics Programme.