COLOMBO: Sri Lankan authorities said Wednesday they would need some USD7 billion to rebuild homes, industries and roads destroyed by Cyclone Ditwah, which has left at least 465 people dead so far.
Hopes have faded for the 366 other people unaccounted for after mudslides and floods triggered by the cyclone, which brought record rains across the island last week.
“Our initial estimate is that we will need about six to seven billion dollars for the reconstruction,” said Prabath Chandrakeerthi, the Commissioner-General of Essential Services who is leading the massive recovery effort.
Chandrakeerthi added that the government was providing 25,000 rupees ($81) to each family to help clean their homes, while those who lost their homes would receive up to 2.5 million rupees (USD8,100).
President Anura Kumara Dissanayake said foreign assistance was essential to finance the recovery, as the country was still emerging from its worst ever economic crisis three years ago. Dissanayake declared a state of emergency on Saturday and has vowed to rebuild with international support.
“We were just coming out of the economic crisis when we were hit by this disaster, which is the biggest challenge faced by any government,” Dissanayake told his top officials on Tuesday.
Sri Lanka declared a sovereign default on its $46 billion external debt in April 2022 after the country ran out of foreign exchange to finance even the most essential imports, such as food, fuel and medicines.
The country secured a USD2.9 billion bailout loan from the IMF, which has said the economy has since stabilised, but Sri Lanka must maintain its reforms, including austerity measures.
The crisis in 2022 led to months of street protests which forced then-president Gotabaya Rajapaksa to step down.
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