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There are discussions and debates surrounding forest certification in developing countries. In this study, we surveyed 50 forest-based companies in Sri Lanka (43 wood-based manufacturers and 7 plantation companies) to ascertain their participation in forest certification, current and future forest certification trends, as well as their satisfaction with the performance of Forest Stewardship Council (FSC) certification in its economic, environmental, and social aspects, using an importance–performance analysis (IPA). Study results indicate that certified companies typically focus on exports and supplying raw materials for value-added exporters. The customer demand/signaling mechanism appears to be the primary driver of FSC certification in Sri Lanka. Forest certification was found to be helpful for companies to access new markets, keep market share, and sell products in existing markets. Results further indicate that price premiums for FSC-certified products exist, though they may not always be significant. However, certification positively influences sales volume and reduces business risks via securing continuous orders from the buyers. The IPA results further indicate that FSC certification has substantially improved company images by positioning certified companies as socially responsible businesses, while helping to create better business stakeholder relationships. FSC certification was found to have weak links in improving on-the-ground environmental performances of certified companies. Study findings have implications for the FSC certification scheme and independent certifiers, enabling them to identify the areas of FSC certification with significant performance gaps.

Revisiting Forest Certification in Sri Lanka: The Forest Management and Export Wood-Based Manufacturing Sector Perspectives