Sri Lanka suffered one of its worst natural disasters with Cyclone Ditwah which brought severe floods. Numerous lives have been lost, people are missing, houses are damaged or destroyed, some roads & railway tracks can no longer be travelled on among other problems. This is troubling as Sri Lanka is still recovering from its recent economic collapse. Relating to Sri Lanka’s economy, the IMF Mission Chief for Sri Lanka Evan Papageorgiou revealed that Sri Lanka has requested approximately 200 million USD of assistance due to Cyclone Ditwah. The IMF Executive Board is considering this request and will decide whether to approve it. In this article, I am writing suggestions for Sri Lanka’s Cyclone Ditwah recovery.
FDI
It would be very beneficial for Sri Lanka to seek foreign direct investments (FDIs) in sectors most affected by this crisis. Railways is a sector that has been seriously damaged. It has been reported that only 30% of Sri Lanka’s railways can be used following the cyclone damage. This comprises 478 km out of a 1,593 km total. It’s important to seek FDI on railways which includes improving the railway network to what it previously was. This could focus on upgrading railways including issues like electrification.
Agriculture has been seriously affected with floods overwhelming agricultural fields with water. Tea planter Roshan Rajadurai stated on dailymirror.lk that the tea industry is predicting a 30 to 35% reduced output. Farmers are facing serious crop damages. Lieke Schröder, a foreign investor based in Sri Lanka wrote an extensive social media post a few months ago dealing with foreign investment in agriculture. She stated that agriculture is presently estimated to only cover 0.24% of FDI. Lieke points out that she’s seeing a shift which includes the government taking efforts to solve issues foreign investors encounter, the Board of Investment (BOI) recognising investment projects in the North and her meeting startup founders combining agriculture and technology. Having FDI investment in agriculture can fasten its recovery and work to make this sector in a stronger state than ever before.
Other sectors which we should seek FDI include roads. This would be very useful for efforts to rebuild roads. Micro, Small and Medium Enterprises (MSMEs) are businesses who have been seriously affected by this cyclone. Having FDI investment into MSMEs can save them from getting out of business and can restore them to make a positive contribution to Sri Lankan society.
PPP
The private sector has an important role to play in the recovery. The government should in my view have public-private partnerships (PPPs). As the government is working on restoring Sri Lanka, they should collaborate with the private sector when they have the skills and incentive to get involved. These would be a set of initiatives covering a range of sectors. An example could be a PPP with the construction sector focused on rebuilding efforts.
Aid
We have a necessity to seek foreign aid. Types of aid the government should make an effort to obtain include aid programs focused on disaster recovery and climate change. Aid could also cover sectors I’ve mentioned above for FDI which are railways, agriculture, roads and MSMEs.
Look at Other Countries
We need to look at other countries who recovered from similar disasters. A focus should be made on developing countries and other countries in Asia as they will have similarities with Sri Lanka. The government should talk to the foreign heads of missions who can advise us based on their experiences.
Final Thoughts & Conclusion
I propose the government have an independent investigation carried out to find out why the Sri Lankan system failed in its response to Cyclone Ditwah. It should be conducted by independent professionals who aren’t involved in politics of the government or any opposition parties. This investigation should give the steps to be taken to prevent future natural disasters from causing devastation.
In rebuilding efforts for homes, roads, buildings, railways and more, we need to design and build them to withstand future disasters. The best engineers should be involved in these efforts. It was good to hear the Sri Lankan President Anura Kumara Dissanayake stating that construction will not be allowed in flood zones and in areas with high-risk of landslides as part of the government’s relief for rebuilding homes.
We need to ensure that our recovery from Cyclone Ditwah does not hinder the economic progress we have made. It needs to be coordinated with our economic recovery. We need to engage with the international community to ease and accommodate our debt burden based on our current situation. Sri Lanka can’t afford to undo the economic gains made with another economic collapse.
This article does not cover all sectors damaged by Cyclone Ditwah and the full scale of what took place. That is outside the scope of this article. These are a set of suggestions for Sri Lanka’s recovery. I would appreciate hearing from others providing more suggestions on how to come out of this crisis. I am thinking of everyone affected by this unspeakable tragedy which includes those who died, got injured, lost loved ones, got their homes destroyed or damaged, farmers who suffered damaged crops among everyone else. I’m hopeful Sri Lanka will find a way to recover from this crisis.
