Cyclone Ditwah delivers crushing blow to Sri Lanka’s economy
Sri Lanka now faces a potentially crippling economic damage from the recent cyclone and floods and early figures from industry leaders may be a conservative start. The initial loss estimates range from US$ 200 million to $ 2.9 billion, with the final toll “likely to reach 1-3 per cent of GDP” (approximately Rs, 300 -900 billion).
Given compounding effects on infrastructure, agriculture, supply chains and livelihoods, a more comprehensive independent assessment accounting for reconstruction delays, reduced exports, and lost productivity could push total economic damage toward Rs. 500–1,440 billion ($ 3.4–9.6 billion) over the coming years, government officials said.
Prabath Chandrakeerthi, Commissioner-General of Essential Services who is leading the massive recovery effort. said Wednesday they would need some $6-$7 billion to rebuild homes, industries and roads destroyed by Cyclone Ditwah,
The World Bank is now carrying out a rapid post-disaster assessment to quantify damages across housing, infrastructure, agriculture, and services to mobilise the funds from the medium term to longer-term development requirements. The International Monetary Fund has said it would provide further support in addition to the currently available resources in the ongoing debt relief package.
The actual estimate of the economic loss could be released following the conclusion of this assessment and the finance ministry determinations, a senior Finance Ministry official disclosed.
However Prof. Priyanga Dunusinghe. Head- Department of IT, Faculty of Arts, University of Colombo, was of the view that loss could be in the region of $1.5 billion – $2 billion.
He noted that the traditional small-scale fundraising like in previous natural disasters like 2004 tsunami or 2016 floods is insufficient this time as it needs bold, large-scale financing.
The government has already launched a “Disaster Recovery Fund” inviting both domestic and international contributions and asked industries to report damage by December 16 for assessment.
The government in its maiden budget allocated a record Rs.1,315 billion for 2025. However, only over Rs. 200 billion worth of projects or 15 per cent of the total allocated capital investments have been approved. The balance money of around Rs. 1 trillion is available for rebuilding activities.
A Rs. 50 billion supplementary estimate has been presented in Parliament to provide relief for cyclone and flood victims. The government has received more than Rs. 697 million as donations so far.
According to the ministry the development partners agreed to repurpose and redesign existing loan facilities to support medium-term rehabilitation of economic and social infrastructure, including major roads, bridges, irrigation systems, and transport networks.
These donor countries and international agencies are exploring possibilities to provide new loan and grant facilities for the country’s long-term development requirements, the ministry official said.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!