$200 Mn ADB Funding for Cyclone Ditwah Recovery and Reconstruction

COLOMBO (News 1st); The Government of Sri Lanka has secured USD 200 million in financial assistance from the Asian Development Bank (ADB) for the implementation of the Post-Cyclone Ditwah Reconstruction and Livelihoods Support Project, a major initiative aimed at rebuilding critical infrastructure and supporting affected communities between 2026 and 2030.

According to the Ministry of Finance, Planning and Economic Development, the funding was mobilized following discussions with the ADB to support recovery efforts in areas devastated by Cyclone Ditwah. The project is expected to play a key role in restoring damaged infrastructure, reviving livelihoods and strengthening climate resilience across affected regions.

The financial assistance will be used to finance the rehabilitation and reconstruction of roads damaged by the cyclone, with a particular emphasis on enhancing climate resilience to better withstand future extreme weather events. 

The programme will also support the restoration of cyclone-damaged irrigation systems, provide agricultural livelihood assistance to affected families and offer housing restoration grants to households impacted by the disaster.

The Ministry of Transport, Highways and Urban Development will serve as the executing agency for the project. The initiative consists of three major components that will be implemented through several government institutions.

The first component focuses on the rehabilitation and reconstruction of cyclone-damaged road infrastructure and will be implemented by the Road Development Authority (RDA). 

The second component covers the restoration of cyclone-damaged irrigation systems and will be carried out by the Irrigation Department (ID) and the Mahaweli Authority of Sri Lanka (MASL).

The third component is dedicated to restoring livelihoods and housing for cyclone-affected families, with agricultural support provided through the Department of Agrarian Development (DAD) and housing assistance delivered through the National Disaster Relief Services Centre (NDRSC).

The loan agreements were signed on 18 August 2026 at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Shannon Cowlin, Country Director of the ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank.