The importance of the Environmental Impact Assessment (EIA) as an effective tool for the purpose of integrating environmental considerations into development planning is highly recognized in Sri Lanka. The EIA helps to identify the likely effects of a particular project on the environment, at an early stage. It also finds ways to reduce unacceptable impacts and to shape the project so that it suits the local environment. It helps officials make decisions about a project and helps the project proponent achieve his aims more successfully. Thus the EIA can be considered as a major planning tool and one of the key techniques to achieve sustainable development.

EIA has also become a mandatory requirement for establishment of development projects in Sri Lanka under the National Environmental Act as well as under few other legislations.