Sri Lanka faces a harsh setback in its fragile economic recovery as Cyclone Ditwah leaves a trail of destruction across homes, roads, and vital farmland. Officials warn that rebuilding the nation could cost up to $7 billion, putting millions of families at risk of falling deeper into poverty.
The island nation, still grappling with its worst economic crisis in decades, saw poverty rise to nearly 25% of its 22 million population after the 2022 financial collapse. A $2.9 billion IMF bailout had sparked cautious optimism, with 2025 growth projected at 4.5%. However, experts now warn that the cyclone could slow growth to about 3% in 2026.
A Devastating Blow
Striking in late November, Ditwah is Sri Lanka’s deadliest natural disaster since the 2004 tsunami, claiming 635 lives and affecting roughly 10% of the population. It ravaged critical infrastructure and destroyed key crops like rice and tea, which are crucial for both livelihoods and export revenue.
“Cyclone Ditwah struck regions already weakened by years of economic stress,” said Azusa Kubota, UNDP Resident Representative in Sri Lanka. “Recovery will be slower and more costly where high flooding coincides with vulnerable communities.”
A Rebuilding Challenge
Prabath Chandrakeerthi, Sri Lanka’s Commissioner General of Essential Services, warned that the rebuilding bill could reach $7 billion and urged international donors and multilateral partners to step in. The government has requested $200 million in emergency funds from the IMF, with an IMF team scheduled to visit in January for reassessment.
UNDP analysis indicates that nearly 20% of Sri Lanka’s land is now flooded, affecting 2.3 million people. “The country cannot shoulder more debt to rebuild,” Kubota added, urging affordable financing from global partners to prevent Sri Lanka from slipping further into financial crisis.
Impact on Agriculture and Industry
The cyclone has devastated Sri Lanka’s tea and rice crops, critical to the economy. Tea production is expected to drop by 3–4 million kilos in December alone, with annual production losses affecting exports to countries including Iraq, Russia, and Turkey. Meanwhile, floods have destroyed 575,000 hectares of paddy fields—out of a total 800,000 hectares—just as the main cultivation season began.
“Farmers lack funds to replant,” said K.K.G. Thilakabandara, chairman of the country’s largest rice farming association. “Authorities must act fast to release funds, or recovery will be impossible for many families.”
