Cyclone Ditwah has emerged as one of Sri Lanka's worst flooding disasters in decades, claiming over 630 lives and leaving 210 people missing, according to the government's Disaster Management Center.

Sri Lanka's newly appointed Commissioner-General of Essential Services, Prabath Chandrakeerthi, said the economic loss from Ditwah was estimated to be around $6 billion to $7 billion (€5.1 billion to €6 billion), which amounts to three times the economic losses stemming from the 2004 tsunami.

"The complete economic loss will be assessed soon to formulate a post-disaster economic recovery plan," Chandrakeerthi told a press briefing in Colombo.

United Nations Development Programme (UNDP) satellite analysis reveals the scale of destruction. According to the UNDP, floodwaters inundated 1.1 million hectares (2.7 million acres), nearly 20% of Sri Lanka's total land area.

The UNDP reported 720,000 buildings were affected by the flooding, with over 16,000 kilometers (about 10,000 miles) of roads submerged, and over 270 kilometers of railway track damaged. Over 480 bridges were affected in the floods.

More than half the exposed population, including 1.2 million women, 522,000 children and 263,000 elderly people, were already living in vulnerable conditions before the cyclone struck, the UNDP reported.

"After one of its worst economic crises and a slow but steady recovery underway, Sri Lanka cannot shoulder more debt to cover the costs of a rebuild from this massive natural disaster," said Azusa Kubota, UNDP Resident Representative in Sri Lanka in a statement.

Kubota urged international partners to step up with affordable financing and innovative instruments that enable a rapid recovery and rebuilding with greater resilience, without the country falling off the "debt cliff."

Disaster damage comes amid economic woes

The disaster, one of the worst in Sri Lanka's history, has delivered a crushing setback to the country's fragile economic rebound, coming three years after it declared bankruptcy amid a financial meltdown.

The economic ramifications of the cyclone threaten to unravel the shaky stabilization achieved through a $2.9 billion IMF bailout. An IMF delegation plans a visit in January 2026 for a fresh assessment of Sri Lanka's economic situation ahead of disbursing the sixth tranche from the existing program.

Last week, opposition leader Sajith Premadasa urged President Anura Kumara Dissanayake's government to renegotiate the IMF deal in the wake of the catastrophe.

The IMF Extended Fund Facility (EFF) agreement "cannot be implemented now in the aftermath of the disaster," Premadasa said while speaking to the parliament. "It is essential to cancel the present agreement with IMF and go for a new agreement."

Sri Lanka's government has also requested $200 million in emergency IMF funding under the Rapid Financing Instrument (RFI) to cope with the impact of the cyclone. The request is currently under review and will be assessed further during the January IMF visit.

For Sri Lankans, stagnant wages have collided with soaring costs of living. Now, Ditwah's devastation adds another layer of hardship.

International assistance has flowed in from the US and China, while multilateral agencies have mobilized emergency resources.

India launched an aid operation called "Sagar Bandhu," deploying naval vessels, helicopters, rescue teams and emergency supplies within hours.

Cyclone hits agriculture, tourism

Shiham Marikar, Secretary General of the National Chamber of Exporters of Sri Lanka, told DW that the cyclone caused significant damage across multiple sectors and Sri Lanka is facing a challenging economic situation.

"From an export perspective, agriculture and tea have suffered damage to plantations, which will affect production volumes and potentially export earnings," said Marikar.

"As for tourism, which is already recovering from prior setbacks, the sector will face additional challenges in rebuilding infrastructure and regaining visitor confidence," he added.

Marikar, who leads advocacy for over 600 members across export sectors, from medium and small enterprises to large firms, said while the damage is significant, the government's recovery measures, combined with potential support from international agencies, could help stabilize the situation.

"However, unless prompt relief and infrastructure rebuilding are implemented, the economic impact could further strain an already fragile economy," he added.

Tourism is a vital source of income for Sri Lanka, drawing visitors to its UNESCO World Heritage sites, pristine beaches and legendary hill country tea estates.

Before Ditwah struck, the sector was finally regaining momentum after years of setbacks including the 2019 Easter attacks, pandemic lockdowns and the 2022 economic meltdown. The sector brought in $3.2 billion in 2024, according to government data, and now faces potential disruption as infrastructure damage affects accessibility.

Dileep Mudadeniya, an advisor to Sri Lanka's tourism ministry, acknowledges the cyclone's toll on travel, particularly scenic train routes to inland areas like the hill country, yet expresses strong confidence in the industry's quick recovery.

"There is a perception impact and a product impact," Mudadeniya told DW. "But this, too, shall pass as we have proven adaptability in post-economic crisis," he added.

Uncertain path forward

The government established a "Rebuilding Sri Lanka" fund early this month, but meaningful recovery requires more than emergency aid.

"This rebuilding demands climate-resilient infrastructure, upgraded early-warning systems, and sustainable urban planning," Nalaka Gunawardene, a science writer from Colombo, told DW.

Felix Fernando, deputy chairman of Sri Lanka's industry body, the Joint Apparel Association Forum, said Sri Lanka's apparel industry is worth around $5 billion to $6 billion. It employs roughly 350,000 workers, and the cyclone has disrupted production and worker attendance in several major factories.

"There are roughly 300 to 350 medium and large export‑oriented factories, alongside a wider base of smaller units and subcontractors," Fernando told DW.

"The cyclone halted operations in at least 15 large factories, damaged infrastructure, and reduced worker attendance by up to 20% in affected regions. Surely, it compounds challenges from global demand slowdowns and economic recovery efforts, but we will bounce back," he added.

Edited by: Wesley Rahn 

This article was updated on December 12, 2025, to correct a naming error.