Cyclone Ditwah causes three times the economic damage as the 2004 tsunami
The losses are estimated at between US$ 6 and US$ 7 billion. In 2004, they ranged from US$ 1.5 to US$ 2 billion. The recovery plan is waiting for detailed assessments. Twenty-two out of 25 administrative districts and 416 factories were affected. Three billion rupees have been allocated in subsidies; raising the public spending limit is being considered to meet needs.
Colombo (AsiaNews) – The economic losses caused by Cyclone Ditwah in Sri Lanka are estimated at US$ 6 to US$ 7 billion, more than three times the damage caused by the 2004 tsunami, one of the worst natural disasters of modern times.
Prabath Chandrakeerthi, Commissioner General of Essential Services, who was appointed last week, told reporters that this was a rough estimate, while "The economic damage of the 2004 tsunami was estimated only at US.5 to 2 billion,” he said.
Now an assessment by the World Bank is pending before an economic recovery plan can be developed.
The Ministry of Industry and Entrepreneurship Development, which reported that Cyclone Ditwah affected 416 manufacturing and export factories across Sri Lanka, is proposing to immediately pay 25 per cent of the total damages to the affected factories.
Efforts are underway to collect damage data, while factory owners have been asked to report the extent of the destruction via an emergency number by 16 December.
The highest number of affected factories is in the districts of Gampaha, Colombo, Puttalam, Trincomalee, Kegalle, Kurunegala, Matara, Kandy, and Batticaloa.
A notification published in the Extraordinary Gazette states that 22 of Sri Lanka's 25 administrative districts were affected by Cyclone Ditwah, underscoring the magnitude of the event. Galle, Matara, and Hambantota, in the Southern Province, are the three districts untouched by the disaster that struck the country as well as many parts of Asia.
The tea industry has been hit hard and may take months to return to normal. Damaged machinery must be sent abroad for repair, while road damage could impact export flows, according to an official from the Colombo Tea Traders Association. The economic losses to the tea industry have not yet been calculated.
The ministry has allocated three billion rupees (US$ 9.7 million) in non-repayable grants to support the reconstruction of these industries, with urgent steps taken to release the funds.
Many industrialists have called for action to repair water, electricity, and road infrastructure to speed up the recovery.
Opposition lawmaker and economic analyst Harsha de Silva told parliament that the budget ceiling for 2026 under the Public Finance Management Act allows for adjustments in extraordinary circumstances.
He noted that parliament may consider raising the capital expenditure limit from 13 per cent of GDP to around 14-14.5 per cent to address urgent needs, adding that the Treasury has over 1.2 trillion rupees (US$ 4.2 billion) in liquidity that can be used immediately, and the planned retirement of 500 billion rupees (US$ 1.6 billion) in Treasury bonds in 2026 could be postponed by a year to prioritise recovery spending.
The government already has significant fiscal leeway to assist communities affected by Cyclone Ditwah, de Silva explained, insisting that there is "no excuse" for delays in relief and cleanup operations.
He also stated that the government has currently LKR 30 billion (IS$ 100 million) earmarked for recurrent expenditure and an additional LKR 20 billion (US$ 65 million) that can be reallocated, for a total of LKR 50 billion that can be used immediately for disaster relief.
According to the Disaster Management Centre (DMC), the death toll reached 607 this morning, with 214 people still missing due to severe weather conditions.
The adverse conditions, which began on 16 November, have so far affected 2,082,195 people or 586,464 families across the country, the agency reported.
Additionally, the DMC said that 4,164 homes were destroyed, while at least 67,505 more sustained partial damage.
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