Cyclone Ditwah Causes $4.1bn Damage in Sri Lanka, World Bank Rapid Report Finds

The cyclone affected nearly 2 million people and more than 500,000 families across all 25 districts, disrupting livelihoods, essential services and economic activity nationwide.

Cyclone Ditwah, which struck Sri Lanka in late November, has caused an estimated US$4.1 billion in direct physical damage, equivalent to nearly 4 percent of the country’s GDP, according to a World Bank Group Global Rapid Post-Disaster Damage Estimation (GRADE) report released today. The cyclone ranks among the most intense and destructive weather events in Sri Lanka’s recent history.

Widespread Human and Economic Impact

The cyclone affected nearly 2 million people and more than 500,000 families across all 25 districts, disrupting livelihoods, essential services and economic activity nationwide. Severe flooding, landslides and wind damage impacted homes, farms, infrastructure and public facilities, compounding challenges in already vulnerable communities.

The GRADE assessment provides rapid, evidence-based insights to inform emergency response, recovery planning and long-term disaster risk reduction. Using a remote, model-based methodology, the assessment estimates direct damage to physical assets only and does not include income losses, production disruptions or the full cost of reconstruction.

Central Province Worst Affected

The Central Province recorded the highest damage, with Kandy district alone suffering an estimated US$689 million in losses, primarily due to flooding and, to a lesser extent, landslides. Other severely affected districts include Badulla, Kegalle, Puttalam and Nuwara Eliya.

Infrastructure Suffers the Heaviest Losses

Damage to infrastructure accounted for the largest share of losses, estimated at US$1.735 billion, or 42 percent of total damages. Affected assets include:

• Roads and bridges

• Railways

• Water supply and sanitation networks

These disruptions have severely affected connectivity, access to markets, healthcare, education and essential services.

Housing and Communities Under Severe Strain

Residential buildings and household contents sustained an estimated US$985 million in damages. The scale of destruction underscores the urgent need for:

• Climate-resilient housing design

• Improved land-use planning

• Stronger flood control and drainage systems

Many families remain displaced or living in unsafe structures, increasing risks to health and safety.

Agriculture and Food Security at Risk

The agriculture sector incurred approximately US$814 million in damages, affecting:

• Paddy and vegetable crops

• Subsistence farming

• Maize production

• Livestock and agricultural infrastructure

• Inland fisheries

These losses pose serious threats to food security and rural livelihoods, particularly in communities already facing economic hardship.

Public Services and Businesses Disrupted

Damage to non-residential buildings, including schools, health facilities, businesses and industrial sites, totaled an estimated US$562 million. Many of these facilities are located near rivers and creeks, making them especially vulnerable to flooding. The disruption has interrupted education, healthcare delivery and local economic activity in affected areas.

Vulnerable Groups Face Disproportionate Impact

The assessment highlights how pre-existing socio-economic vulnerabilities—including poverty, limited access to services and exposure to climate risks—are likely to slow recovery. Women, children, older persons and female-headed households face heightened risks.

“As we look closely at the hardest-hit districts, we see that deep-rooted vulnerabilities have left communities especially exposed,” said Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and Maldives.“In Kandy and Nuwara Eliya, about two in four households are headed by women or older persons. Thousands of women and girls have been displaced or remain in unsafe homes. These realities underscore the need for tailored, community-centered recovery efforts.”

Immediate Support and the Road to Recovery

In response to the disaster, the World Bank Group has mobilized up to US$120 million from ongoing projects to help restore essential services and infrastructure, including:

• Healthcare

• Water and sanitation

• Education

• Agriculture

• Transport connectivity

While the GRADE report provides an initial estimate of direct damage, recovery and reconstruction needs are expected to far exceed US$4.1 billion. The report emphasizes the importance of comprehensive recovery strategies that:

• Address humanitarian needs

• Restore livelihoods

• Build resilient housing and infrastructure

• Integrate climate and disaster risk considerations into future development

National Leadership and Collaboration

The World Bank acknowledged the Government of Sri Lanka’s leadership in completing the assessment, which was carried out in close coordination with the External Resources Department, Treasury, National Planning Department and Disaster Management Centre.

The findings provide a critical foundation for mobilizing resources, prioritizing investments and building a more resilient Sri Lanka in the face of intensifying climate risks.