FINANCIAL CHRONICLE – Sri Lanka has finalized a loan agreement worth $200 million with the Asian Development Bank (ADB) to support a five-year initiative aimed at reconstruction and livelihood assistance following Cyclone Ditwah.
This funding will be utilized for the rehabilitation and rebuilding of roads that suffered damage from the cyclone, with a focus on enhancing climate resilience during the years 2026 to 2030.
The signing of the loan agreement took place at the Treasury in Colombo on Tuesday, August 18, with Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning, and Economic Development, representing the Government. Shannon Cowlin, ADB’s Country Director for Sri Lanka, signed on behalf of the bank.
The Ministry of Finance has not disclosed specific terms and conditions related to the loan.
This financial support is anticipated to play a crucial role in restoring irrigation systems affected by the cyclone, providing agricultural assistance to families in need, and offering housing restoration grants to those impacted by the disaster.
The Ministry of Transport, Highways, and Urban Development will oversee the execution of the project, which includes three primary objectives: the rehabilitation of roads damaged by the cyclone, the restoration of irrigation systems, and the revitalization of livelihoods and housing for affected households.
Cyclone Ditwah wreaked havoc across various regions of Sri Lanka, causing heavy rain, localized flooding, and strong winds that extensively damaged vital infrastructure, homes, and agricultural lands.
The cyclone’s impact was particularly harsh on vulnerable communities in rural, coastal, and upcountry areas, leading to the destruction of crops, livestock, and small businesses.
The loss of arable land and essential rural infrastructure has severely hindered income generation for numerous farming and fishing families, leaving them without reliable sources of livelihood.
The rapid devastation necessitated a shift in state resources towards emergency relief efforts, food distribution, and urgent repairs of basic infrastructure, further exacerbating pre-existing economic strains on household incomes and delaying long-term community development.
