Sri Lanka has secured a US$200 million loan from the Asian Development Bank (ADB) to fund reconstruction and livelihood recovery in areas damaged by Cyclone Ditwah.
The loan agreements were signed on Tuesday, August 18, at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the government, and Shannon Cowlin, Country Director of the ADB’s Sri Lanka Resident Mission, for the bank.
The money will finance the Post-Cyclone Ditwah Reconstruction and Livelihoods Support Project, to be implemented between 2026 and 2030. The Ministry of Transport, Highways and Urban Development will act as the executing agency.
The project has three components. The first covers the rehabilitation and reconstruction of cyclone-damaged roads and will be carried out by the Road Development Authority, with an emphasis on building climate resilience so the network can better withstand future extreme weather. The second component funds the restoration of damaged irrigation systems and will be implemented by the Irrigation Department and the Mahaweli Authority of Sri Lanka.
The third component is directed at affected households. Agricultural livelihood assistance will be delivered through the Department of Agrarian Development, while housing restoration grants will be channelled through the National Disaster Relief Services Centre.
The Ministry of Finance said the funding was mobilised following discussions with the ADB on supporting recovery in the worst-hit regions. Cyclone Ditwah caused widespread damage to roads, irrigation infrastructure and homes, and the government has been assembling external financing to meet reconstruction costs.
