Sri Lanka seeks $1.6 billion in extra 2026 spending to rebuild after Cyclone Ditwah, which killed over 640 people and affected 2.3 million.
COLOMBO: The Sri Lankan government has announced plans for USD 1.6 billion in extra spending for 2026 to fund recovery from Cyclone Ditwah.
The cyclone killed more than 640 people and affected 2.3 million, over 10% of the country’s population.
President Anura Kumara Dissanayake described it as the most challenging natural disaster to hit the island.
He presented a request for an additional 500 billion rupees for rebuilding homes, infrastructure, and providing cash handouts.
“We need to allocate an additional 500 billion rupees for disaster relief and reconstruction,” Dissanayake told parliament.
His party’s two-thirds majority is expected to approve the mini-budget on Friday.
The government stated it does not intend to raise its borrowing limit to meet the additional expenditure.
It is banking heavily on foreign grants and will call an international donor conference early next month.
Authorities have already requested USD 200 million from an IMF rapid relief fund.
They have also secured World Bank agreement to repurpose USD 120 million from an ongoing project.
On Tuesday, Sri Lanka secured a USD 200 million loan from the Asian Development Bank for water management.
These funds will complete a canal network in the flood-ravaged North-Central Province.
Preliminary estimates suggest the country may need up to USD 7 billion to fully rebuild.
The cyclone struck as Sri Lanka was emerging from its worst-ever economic crisis in 2022.
The economy has since stabilised following a USD 2.9 billion IMF bailout approved in early 2023. – AFP
