Cyclone Ditwah to delay Sri Lanka's fragile recovery, worsen poverty

9/12/2025 17:44

Sri Lanka's fragile economic recovery will be delayed as Cyclone Ditwah's devastation of homes, roads and vital crops pushes more families into poverty, with officials warning the bill to rebuild could soar to $7 billion.



The worst economic crisis in decades, which peaked in 2022, had already doubled Sri Lanka's poverty rate to nearly 25% of its 22 million people. A $2.9 billion IMF bailout sparked a tentative rebound, with growth seen at 4.5% this year, but analysts say growth will slow to about 3% in 2026 due to Ditwah.



Striking in late-November, Ditwah is the country's deadliest natural disaster since the 2004 tsunami, killing 635 people and affecting about 10% of the population. It wrecked critical infrastructure and key crops such as rice and tea.



"Cyclone Ditwah struck regions already weakened by years of economic stress," said Azusa Kubota, United Nations Development Programme (UNDP) Resident Representative in Sri Lanka.