ADB Approves $200 Million Emergency Assistance for Sri Lanka’s Post-Cyclone Ditwah Recovery

COLOMBO (News 1st): The Asian Development Bank (ADB) has approved a USD 200 million emergency assistance package for Sri Lanka’s recovery and reconstruction following Cyclone Ditwah.

According to a statement released by the ADB, the package comprises a USD 100 million regular loan and a USD 100 million concessional loan from ADB’s ordinary capital resources, and a USD 500,000 technical assistance grant to help strengthen project implementation, readiness, and quality assurance.

According to the statement, the Post-Cyclone Ditwah Reconstruction and Livelihood Support Project will finance priority investments to rehabilitate damaged road and irrigation infrastructure, restore the livelihoods of affected smallholder farmers, and support the reconstruction of severely damaged or destroyed houses. 

The project applies build-back-better principles to strengthen resilience to future disasters.

According to ADB Country Director for Sri Lanka Shannon Cowlin said, “Cyclone Ditwah caused widespread damage to infrastructure, housing, and livelihoods across Sri Lanka, placing additional strain on communities already facing significant economic challenges."

According to the statement, Cowlin affirmed that this emergency assistance will help restore essential services, support affected households and farmers, and rebuild infrastructure to higher, climate-resilient standards.

Cyclone Ditwah made landfall in Sri Lanka on 28 November 2025, bringing heavy rainfall, floods, and landslides that caused extensive damage across 22 districts and severely disrupted transport networks, irrigation systems, housing, and rural livelihoods.

ADB said that the project will support the rehabilitation and climate-resilient reconstruction of priority national and rural roads damaged by the cyclone. This includes slope stabilization, drainage improvements, and repairs to carriageways and minor structures.

The project will also finance the rehabilitation of damaged irrigation infrastructure, including tanks, canals, and associated water management structures, and will strengthen dam safety planning.

In addition, the project will provide targeted support to cyclone-affected households by building on the government’s recovery assistance programs for smallholder paddy farmers and owner-driven housing reconstruction. 

The project will be implemented through government agencies responsible for transport, irrigation, agriculture, and disaster recovery, supported by project implementation consultants and regular ADB review missions.