Cyclone Ditwah Threatens Sri Lanka's Economic Stability

Cyclone Ditwah has severely impacted Sri Lanka's economy, pushing many into poverty by damaging homes, infrastructure, and vital crops. The disaster could raise the rebuilding cost to $7 billion and slow economic growth to 3% by 2026. The government seeks international aid to navigate this crisis.

Cyclone Ditwah has devastated Sri Lanka, severely delaying its fragile economic recovery. The storm has destroyed homes, infrastructure, and crucial crops, pushing more families into poverty as the rebuilding bill may skyrocket to $7 billion.

The country, already grappling with its worst economic crisis in decades, had been on a tentative path to recovery with a $2.9 billion IMF bailout. However, analysts project that growth will slow to about 3% by 2026 due to the havoc wreaked by the cyclone, which struck in late November and became the deadliest natural disaster since the 2004 tsunami.

Key industries like tea and apparel are suffering. Officials report that tea production will significantly drop, while paddy farmers face the destruction of their crops and finances. The government and organizations like the UNDP are calling for urgent international aid to prevent further economic decline.

(With inputs from agencies.)