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This paper focuses on a methodology called 'generic adaptation methodology for river basins' (AMR) that provides guidance to water managers seeking: (1) potential adaptation measures to climate change and climate variability, (2) measuring impacts, and (3) evaluating adaptations. The methodology uses basic elements addressed in existing adaptation research and is designed for a participatory setting involving various stakeholders. In AMR, the water resources system is seen as an economic asset that provides 'goods and services' for both humans and ecosystems. The innovative aspect of AMR is that it distinguishes impacts to water management objectives and impacts to the physical state of water resources in a river basin in a relatively simple iterative approach. Both impact types are quantified using indicators. The framework and results are demonstrated for a case study in the Walawe basin (Sri Lanka). It is explained that actually implementing adaptations in policy making can be difficult in trans-boundary river basins as each riparian country has its own policy objectives and hence ways of dealing with adaptation. [ABSTRACT FROM AUTHOR]