The recently created Environmental Management Division within the Forest Department is currently undertaking a National Conservation Review (NCR) of all remaining natural forest and related grasslands within Sri Lanka, as part of the Environmental Management Component of the Environmental Management in Forestry Developments Project. The NCR addresses the biological importance of natural forests, largely in terms of their species diversity, together with their value for soil conservation and hydrology. It is being carried out by a team of scientists comprising three national consultants (botanist, zoologist and hydrologist) and an Assistant Conservator of Forests, with technical assistance provided by an international consultant. This document consists of a description of the methodologies used to evaluate the importance of natural forests, a report on the results of fieldwork undertaken to date, and an assessment of the additional resources required to complete the NCR.