The World Bank's GRADE report estimates Cyclone Ditwah caused about $4.1 billion in direct physical damage in Sri Lanka — roughly 4% of GDP. The storm killed more than 640 people and affected over 10% of the population, with infrastructure suffering the heaviest losses ($1.735 billion) and housing losses at $985 million. The estimate excludes economic losses and full reconstruction costs. The government will reallocate $120 million from a World Bank project, and the IMF approved $206 million in emergency financing to aid recovery.
Cyclone Ditwah Ravages Sri Lanka — World Bank Estimates $4.1 Billion In Damage
The cyclone struck as the country was emerging from its worst ever economic meltdown in 2022 (Ishara S. KODIKARA)(Ishara S. KODIKARA/AFP/AFP)
Cyclone Ditwah, which struck Sri Lanka last month, inflicted an estimated $4.1 billion in direct physical damage to homes, farmland and vital infrastructure, the World Bank said in a report published Monday.
The storm killed more than 640 people and affected over 10% of the island nation's population. Flooding and landslides triggered by the cyclone caused widespread destruction across Sri Lanka, compounding the challenges of recovery.
Scale and Sectoral Impact
The World Bank's Global Rapid Post-Disaster Damage Estimation (GRADE) report values the damage at roughly 4% of Sri Lanka's gross domestic product. Infrastructure — notably roads, bridges, rail lines and water supply systems — accounted for the largest share of losses, estimated at about $1.735 billion.
Housing damage was estimated at $985 million, roughly 24% of the total. Public buildings, including schools, health centers, businesses and large industrial facilities located along major rivers and creeks, accounted for about $562 million in estimated damages.
The World Bank notes these figures cover direct physical damage only and "do not include losses related to income or production, nor the full costs of recovery and reconstruction." Actual economic and social costs are therefore likely to be significantly higher.
Aid, Recovery And Economic Context
To accelerate recovery, the Sri Lankan government arranged to reallocate $120 million from an ongoing World Bank project to disaster recovery efforts. The International Monetary Fund has also approved $206 million in emergency financing to support relief and rehabilitation.
The cyclone hit as Sri Lanka was still emerging from its severe 2022 economic crisis, when foreign exchange reserves collapsed and imports of essentials were disrupted. Following a $2.9 billion IMF-supported program approved in early 2023, the country's economy has shown signs of stabilization — but rebuilding critical infrastructure and livelihoods will be a major near-term challenge.
As Sri Lanka begins recovery and reconstruction planning, international finance, targeted relief, and resilient rebuilding will be essential to reduce future vulnerability to extreme weather events.
