The Environmental Impact Assessment (EIA) unit of the Central Environmental Authority is involved in the implementation of the EIA procedure under the National Environmental Act. The functions of the unit includes the administration of the EIA process, co-ordination between Project Approving Agencies (PAA's) that have been appointed for this purpose, preparation of manuals and guidelines on EIA

The importance of the Environmental Impact Assessment as an effective tool for the purpose of integrating environmental considerations with development planning is highly recognized in Sri Lanka. The application of this technique is considered as a means of ensuring that the likely effects of new development projects on the environment are fully understood and taken into account before development is allowed to proceed. The importance of this management tool to foresee potential environmental impacts and problems caused by proposed projects and its use as a mean to make project more suitable to the environment are highly appreciated.