Economic Assessment of Cyclone Ditwah’s Impact on Sri Lanka

Vithanage Erandi Kawshalya Madhushani, JadeTimes Staff

V. E. K Madhushani is a Jadetimes news reporter covering Economic

---

Image Source -: The Official Government New

Overview of Financial Losses

According to a World Bank Group GRADE (Global Rapid Post Disaster Damage Estimation) report, Cyclone Ditwah, which swept through Sri Lanka in late November, resulted in approximately US$4.1 billion in direct physical destruction. This staggering figure encompasses damage to buildings, agricultural assets, and vital infrastructure, representing nearly 4% of the nation's Gross Domestic Product (GDP).

Humanitarian and Social Impact

Regarded as one of the most catastrophic storms in recent Sri Lankan history, the cyclone impacted all 25 districts, affecting roughly 2 million individuals and 500,000 households. The resulting devastation significantly paralyzed livelihoods, disrupted essential public services, and halted economic productivity across the island.

Methodology and Scope of the Assessment

The GRADE report serves as a critical guide for emergency response and long term recovery strategies. It utilizes a remote, model-based approach to calculate the immediate economic toll on physical assets. However, it is important to note that this estimate excludes indirect losses such as lost income or production and does not cover the full expenditure required for total reconstruction.

Geographic and Sectoral Analysis

• Hardest Hit Region: The Central Province endured the most severe impact. In the Kandy district alone, losses reached US$689 million, primarily driven by extensive flooding and localized landslides.

  
  

• Infrastructure (42% of Total Loss): This sector suffered the most significant damage, valued at US$1.735 billion. The destruction of roads, bridges, rail networks, and water systems has severely hindered market access and connectivity.

  
  

• Housing and Residential Assets: Estimated at US$985 million, the damage to homes and domestic property underscores the urgent need for disaster-resilient urban planning and enhanced flood management systems.

  
  

• Agriculture and Food Security: With losses totaling US$814 million, the farming sector including paddy, livestock, and inland fisheries faces a grave crisis. This destruction poses a direct threat to the food security of vulnerable rural communities.

  
  

• Public and Industrial Facilities: Non-residential structures, including healthcare centers, schools, and industrial factories, sustained US$562 million in damages, further complicating the delivery of education and medical services in affected zones.