Sri Lanka Unveils Major Reconstruction Aid After Devastating Cyclone as Rain Persists

Sri Lanka Unveils Major Reconstruction Aid As Rain Persists

Sri Lanka has announced a wide-ranging compensation and reconstruction package for families whose homes were destroyed or severely damaged by Cyclone Ditwah, even as authorities warn of continuing rain, landslides and flooding.

Casualties and impact: The government has confirmed 611 deaths and says another 213 people are unaccounted for and feared dead. More than two million people—almost 10% of the population—have been affected by last week’s floods and landslides, described by President Anura Kumara Dissanayake as the nation’s most challenging natural disaster in recent memory.

Emergency warnings: The Disaster Management Centre (DMC) has issued fresh landslide alerts across parts of the worst-hit Central Province as the northeast monsoon brings further heavy rain. Residents evacuated from landslide-prone areas, particularly in the central highlands, have been advised not to return yet even if their homes appear intact.

Reconstruction and relief package: Under the plan announced by the finance ministry, eligible survivors may receive up to 10 million rupees (about $33,000) to buy land in safer locations and build a new home. The package also includes livelihood assistance and cash grants for essentials such as school books, kitchen appliances, bedding and rent for those not provided state housing. The government is offering 1 million rupees to the family of each person killed or to those left permanently disabled.

The finance ministry has not published an overall price tag for the package. A senior official previously estimated recovery and reconstruction could cost as much as $7 billion, raising questions about funding amid Sri Lanka’s recent economic turbulence.

Financial relief measures: The central bank has directed state and private commercial banks to reschedule loans for affected borrowers and to refrain from imposing penalties on defaults resulting from the disaster.

Damage and response: The DMC reports nearly 75,000 homes damaged, including close to 5,000 destroyed. Around 150,000 people remain in state-run shelters, down from a peak of 225,000. The Sri Lanka Air Force continues to use helicopters and fixed-wing aircraft to deliver supplies to communities cut off by landslides in the central highlands.

International support: The International Monetary Fund (IMF) said it is considering an additional $200 million for Sri Lanka on top of a $347 million tranche the country is already due to receive this month. The IMF reiterated that it remains closely engaged and committed to supporting the authorities.

Cyclone Ditwah struck as Sri Lanka was still recovering from a severe economic crisis that peaked in 2022, after a four-year, $2.9 billion IMF-supported program began in early 2023. President Dissanayake told parliament the economy has shown considerable recovery but is not yet resilient enough to absorb this shock without outside support.

Despite efforts by the military and volunteers, renewed rain has hampered clean-up and recovery operations. Authorities continue to monitor weather and hazard risks and urge displaced residents to remain in safe locations until assessments are complete.

(Reporters: aj/mjw)