The current paper discusses the possible costs and benefits in applying the concept of Climate
Compatible Development (CCD) to shrimp aquaculture in Puttalam, Sri Lanka. It suggests how the sector
can support mitigation of Green House Gas (GHG) emissions and adaptation to climate change effects,
whilst stimulating development that will also benefit rural societies. Mechanisms that could enable this
change include subsidies, insurance and bank loans which will also facilitate investment by foreign
private enterprises and subsequent export. The development of a specific aquaculture policy and master
plan would facilitate the process further.