This study examines the economic issues involved in conservation of the Asian elephant and mitigation of Human-Elephant Conflict in Sri Lanka. The analyses presented in this thesis are based on the results from two sets of contingent valuation surveys. The findings of this research indicate that there is a strong economic case for the conservation of wild elephants in Sri Lanka. It is shown that extinction of the current elephant population in Sri Lanka would result in a Kaldor-Hicks social loss. This implies that compared to the absence of wild elephants in Sri Lanka, the current situation involves a Kaldor-Hicks benefit. This suggests that the community as a whole will experience a net economic benefit from ensuring the survival of wild elephants in Sri Lanka. Moreover, the results of these analyses also indicate that the nation will suffer a net economic loss if wild elephants become extinct in Sri Lanka.The overall findings of this study provide an improved economic assessment of the value of the elephant in Sri Lanka and a basis for wildlife authorities to explore new strategies and formulate appropriate policies for conserving this endangered species.