From Revenge to Relief: How BIOFIN’s Livestock Insurance Shields Leopards and Livelihoods
The Sri Lankan Leopard (Panthera pardus kotiya), a sub species endemic to Sri Lanka, 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. The species has been listed as vulnerable in the Red List.
To address these ‘revenge killings’ the BIOFIN project launched a first-of-its-kind livestock insurance scheme targeting small and medium-level cattle and goat farmers (with less than 100 animals in the herd) in a selected geographic area, from which a significant number of revenge killings were reported in the last few years. On 19th August 2025, UNDP's BIOFIN, together with the Wildlife and Nature Protection Society (WNPS), and LOLC- a leading insurance company operating in Sri Lanka, under the guidance of the Department of Wildlife Conservation, launched this pioneering Livestock Insurance Scheme aimed at reducing human–wildlife conflict and safeguarding the endangered Sri Lankan Leopard.
Photo caption: Sri Lankan Leopard (Panthera pardus kotiya), a sub species endemic to Sri Lanka, is the apex predator of the island’s terrestrial ecosystems | Amila Weerasinghe WNPS
The 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 village-level government administrative 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, emphasized 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.
BIOFIN’s backing for this initiative is set for one year, thanks to the generous support of the Government of Switzerland. Working alongside its local partner, WNPS, the project aims to extend support in future years and broaden its reach to other regions of Sri Lanka.