An Echelon Media Company
Friday November 13th, 2026

Rebuilding housing post-Ditwah: Lessons from Sri Lanka’s tsunami experience

The Ditwah Cyclone ranks second only to the December 2004 Tsunami in terms of damage to housing in Sri Lanka’s recent history. According to the government’s Disaster Management Centre, as of 9th December 2025, 86,488 houses were partially or fully damaged due to Ditwah.

This is only slightly fewer than the nearly 100,000 houses affected by the 2004 Tsunami. The government has announced a redevelopment programme to assist affected families in rebuilding their homes in safer locations.

It has many similarities to the 2005 post-Tsunami housing programme and holds important insights as outlined in the Post-Disaster Housing: Lessons Learnt from the 2004 Tsunami of Sri Lanka, to inform the Ditwah Cyclone housing initiative.

The Tsunami housing study was based on two surveys by the Institute of Policy Studies of Sri Lanka (IPS) covering 600 affected families across six districts in the Southern and Eastern Provinces to evaluate the efficiency and effectiveness of the post-Tsunami housing programme.

The first was done in April 2005 and the same households were re-surveyed after 18 months to assess progress.

The Post-Tsunami Housing Programme

A key feature of the 2005 post-Tsunami housing programme was the no-build buffer zone in the beachfront of affected areas, as it was deemed unsafe to build within this zone. Given this demarcation of the no-build zone, the post-Tsunami housing programme took a two-pronged approach.

Families living outside the zone received cash grants to rebuild their homes (owner-driven rebuilding), while those residing inside the zone were provided with houses in alternative areas closer to their original residences (donor-driven relocation).

Owner-driven rebuilding: All affected individuals living outside the no-build buffer zone could receive a government grant to rebuild their homes. The grant, given in stages based on the extent of damage, required households to prove ownership. They could choose to rebuild their old home or construct a new one on land they owned. Families that effectively used their grant could also qualify for a LKR 500,000 concessionary loan to meet additional housing needs.

The selection of beneficiaries and the assessment of grant amounts followed a three-stage process. The Divisional Secretariat (DS) established a Damage Assessment Team (DAT) in each Grama Niladhari Division (GND) to support this process. The DAT included representatives from the relevant GND, donor agencies active in the area, members of the village rehabilitation committee (VRC), and technical officers from the DS. VRCs were created explicitly in each GND to incorporate community input during reconstruction.

In the first stage, DAT compiled a list of households eligible for housing assistance. During the second stage, the GND and DS published preliminary lists of eligible families. Any disputes about eligibility were recorded and resolved at VRC meetings. Conflicts that could not be settled locally were escalated to a designated grievance committee at a higher level. After finalising the list, beneficiaries received certificates to confirm their eligibility.

Donor-driven relocation: All those living within the no-build buffer zone were promised a house built with the assistance of donors on land designated by the government.

The households were not required to prove land ownership. The new homes needed to have at least 500 sq ft of space and access to electricity, running water, sanitation, and drainage facilities according to guidelines set by the Urban Development Authority (UDA).

The main challenge of this scheme was to find suitable land for relocation. The District Secretary and the UDA were responsible for identifying land for the move.

Post-Ditwah Housing Programme

The post-Ditwah housing programme too employs a two-pronged approach. Families living in unsafe locations are to be provided with either land or LKR 5 million to purchase new land, along with another LKR 5 million to construct a new house.

In contrast, houses damaged by Ditwah are to be allocated up to LKR 2.5 million for rebuilding, depending on the extent of the damage.

Lessons for Ditwah from the Tsunami Housing Programme

Identifying beneficiaries

One main issue in the post-Tsunami housing programme was defining a ‘household’. A ‘household’ was understood as all individuals living together before the Tsunami.

Clarifying this early on was important because, in some cases, extended families consisting of several nuclear families shared the same dwelling. The three-stage beneficiary identification process described earlier helped select beneficiaries transparently, with the involvement of a representative group of stakeholders.

Initially, during the post-Tsunami reconstruction phase, donors lacked an effective system for selecting beneficiaries. As many distributed donations by directly visiting affected places, those near main roads received most of the donations, while less visible groups received less.

The eligibility lists were a valuable means of providing information on the needs of the affected.

The post-Ditwah housing programme could also benefit from clarity regarding who is eligible for different types of housing assistance.

Identifying house ownership

The lack of documents to prove ownership and identity was one of the main factors delaying the progress of the housing programme. According to the IPS Survey, 23% of those surveyed reported losing their deeds, and 41% reported losing their national identity cards during the Tsunami.

Furthermore, the requirement to show land ownership made several households ineligible for a new house because some of the damaged homes were built on land that had been encroached upon.

The post-Ditwah reconstruction can avoid delays by establishing mechanisms to replace lost documents and, where that is not possible, other means of proving ownership, which is essential for accelerating beneficiary identification.

Process oversight and governance

The government formed the Task Force for Rebuilding the Nation (TAFREN) to ensure proper procedures in beneficiary identification and fund distribution in accordance with accounting standards.

According to the IPS’ 2008 follow-up survey, the no-build buffer zone, difficulties in finding suitable land for family relocation, and issues with donor coordination were the primary reasons for delays in providing houses for the affected. The buffer zone was later relaxed to speed up reconstruction.

In March 2006, the Reconstruction and Development Agency (RADA) was established to improve coordination between DSs and donors.

Effective donor coordination was essential to ensure that all beneficiaries received support without overlap, thereby optimising donation utilisation.

During the post-Tsunami reconstruction phase, some donors’ reluctance to register with the DS led to ineligible people receiving houses, while eligible people did not. To resolve this, all donors – whether national, international, multinational, or private – supporting the reconstruction phase had to register with the DS.

This enabled the government to match donors with affected individuals using eligibility lists. Even donors outside the official reconstruction programme were encouraged to register with the DS to avoid duplicate assistance.

Taking measures to register potential donors and map donor assistance to eligible lists helps to highlight gaps in the reconstruction programme. Such information helps attract new donors and ensures that all eligible persons receive assistance.

It is vital for the Ditwah-housing programme also to ensure that an identified agency is given authority to ensure proper governance and coordination.

Skills, materials for rebuilding

The lack of skills, materials, and labour for building their own houses was a primary obstacle to the progress of the owner-driven housing programme. The IPS 2005 survey revealed that 62% of the affected households were unable to manage the rebuilding of their own houses.

The reconstruction boom following the Tsunami increased the input prices, making the initial allocation of funds insufficient. Further, identifying land for relocation was a central issue during the post-Tsunami relocation period.

Ensuring the availability of necessary inputs and skills is essential for speeding up reconstruction in the post-Ditwah reconstruction phase. Early identification of suitable land for relocating families and ensuring that allocated plots are ideal for beneficiaries’ lifestyles are essential to expedite reconstruction and ensure beneficiary welfare.

Conclusion

The measures announced by the government to provide grants to Ditwah Cyclone affected households to move to safe locations and rebuild their houses are commendable. Expediting the reconstruction process by minimising bottlenecks and clarifying beneficiary eligibility is essential to speed up reconstruction, as described above, thereby improving the welfare of those affected.

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

Continue Reading

Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

Continue Reading

Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

Read more
Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

Continue Reading

Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

Continue Reading

Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

Continue Reading

Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

Continue Reading