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Cyclone Ditwah Exposes Sri Lanka’s Economic and Governance Fault Lines
The economic fallout from Cyclone Ditwah is proving far deeper and more structurally damaging than initial disaster narratives suggested, with the International Labour Organisation (ILO) warning that nearly 16% of Sri Lanka’s GDP about $16 billion has been exposed to potential damage, largely concentrated in a handful of districts.
This concentration, the ILO cautions, risks uneven recovery and prolonged regional economic stagnation if policy responses remain fragmented and poorly coordinated.
In its Preliminary Employment Assessment, the ILO used night-time light data combined with flood and landslide mapping to estimate economic exposure. The analysis shows that 16.3% of observed economic activity, measured through illuminated zones, fell within disaster-affected areas highlighting the vulnerability of growth hubs rather than peripheral regions alone.
By contrast, the World Bank’s rapid damage assessment placed initial losses at $4.1 billion, or around 4% of GDP, a figure that excludes income losses, business disruptions, and long-term reconstruction costs.
While the Bank acknowledged that total recovery needs would be substantially higher, the sharp gap between the two estimates underscores methodological differences and, more critically, the absence of a unified national damage assessment framework.
Adding to the concern is the labour market impact, which the ILO describes as severe and immediate. Around 374,000 workers were employed in flood- and landslide-affected zones, with potential income losses estimated at $48 million per month if employment disruptions persist.
Agriculture and fisheries were among the hardest hit, with 23% of paddy land affected and tea output losses projected at up to 35%. Smallholder tea farmers who account for 70% of sector output have borne the brunt of the damage.
While the UNDP has repeatedly warned that climate-induced disasters will increasingly reverse development gains in countries with weak institutional coordination, Sri Lanka’s response to Ditwah appears to validate those concerns.
Relief delivery, livelihood restoration, and infrastructure rehabilitation have suffered from overlapping mandates, delayed data sharing, and weak local-central coordination, particularly in estate and rural economies.
From an IMF perspective, disaster shocks of this scale pose significant fiscal and macroeconomic risks, especially for a country already under a tight adjustment programme.
The Fund has consistently stressed that climate resilience, social protection targeting, and disaster-risk financing must be integrated into fiscal planning yet Ditwah exposed gaps in preparedness, insurance coverage, and rapid labour market support.
The ILO has called for emergency cash assistance, employment-intensive recovery programmes, and targeted MSME support, but it also stressed that such measures will only succeed if governance systems are strengthened. Without institutional reform and coordination, Sri Lanka risks turning a climate shock into a prolonged economic setback
Seven-Day Detention Granted for Suspects in Major Offshore Drug Seizure
The Police Narcotics Bureau (PNB) has obtained court approval to detain suspects arrested in connection with a major drug seizure uncovered during a Sri Lanka Navy operation at sea. The seven-day detention orders were issued after the suspects were produced before the Hulftsdorp Magistrate’s Court, police confirmed.The drugs were first detected on December 20 when Navy personnel inspected a multi-day fishing vessel operating off the southern coastline. The vessel, along with five individuals on board, was escorted to the Dikkowita Harbour on December 24. Subsequent searches at the harbour uncovered a large cache of narcotics, including 21 kilograms of heroin and 172 kilograms of crystal methamphetamine, commonly known as ‘Ice’.
Preliminary investigations indicate that the illicit cargo had been transferred to the fishing vessel from a foreign ship believed to be of Iranian origin. In a related development, the PNB arrested six additional suspects at the Mirissa Fisheries Harbour, who are suspected of assisting in bringing the drugs ashore.
Meanwhile, the Sri Lanka Navy reported that it has seized around 99 boats and multi-day fishing vessels used for narcotics trafficking so far this year, from January 1 to December 24. During the same period, approximately 360 suspects were taken into custody.
The Navy also revealed that more than 4,000 kilograms of illegal drugs have been intercepted in 2025, including nearly 3,000 kilograms of crystal methamphetamine and over 1,050 kilograms of heroin. In addition, authorities seized 33 kilograms of hashish, more than 1.6 million narcotic pills, and around 5,900 kilograms of locally and foreign-grown cannabis during the year.
India’s Neighbourhood Diplomacy Tested and Proven after Cyclone Ditwah
India’s response to Cyclone Ditwah has underscored how New Delhi’s Neighbourhood First policy now operates not merely as diplomatic rhetoric but as an institutionalised crisis-response framework, extending from the Prime Minister’s Office to ministerial, military, and diplomatic levels.
The delivery of a special letter from Prime Minister Narendra Modi to President Anura Kumara Dissanayake, carried personally by External Affairs Minister Dr. S. Jaishankar, was a clear political signal that Sri Lanka’s recovery is viewed in India as both a humanitarian priority and a strategic responsibility.
As Sri Lanka now shifts its attention to the next phase, India has assured that India will extend all possible support as a trusted partner and a reliable friend. Prime Minister Modi stated in his letter
As in the past, we will stand shoulder to shoulder with you in rebuilding lives and ensuring resilience in Sri Lanka. In this context,he added.
The letter explicitly framed India’s intervention within its First Responder commitment, a doctrine that has steadily evolved since the Indian Ocean tsunami and gained operational maturity through recent regional disasters.
Continuing the goodwill gesture , India has committed a comprehensive reconstruction assistance package worth $ 450 million to support Sri Lanka’s recovery from the devastation caused by Cyclone Ditwah, reaffirming its role as the country’s first responder and closest regional partner, during External Affairs Minister Dr. S. Jaishankar’ recent Sri Lanka visist this week
Under ‘Operation Sagar Bandhu’, India deployed naval vessels, aircraft, and helicopters to transport relief supplies and emergency materials, while specialised teams supported search and rescue, medical response, and restoration of critical communications and connectivity. The speed and scale of this mobilisation reflected a preparedness that few regional actors can match.
Dr. Jaishankar’s visit elevated the assistance from emergency relief to structured rehabilitation planning. By arriving as the Prime Minister’s Special Envoy, the External Affairs Minister carried not only humanitarian goodwill but also a mandate to discuss the implementation of a comprehensive assistance package, signalling continuity beyond immediate disaster response.
This shift from relief to resilience marks a critical distinction between ad hoc aid and strategic partnership.
India’s engagement also highlights an important governance dimension. Sri Lanka’s cyclone response has exposed institutional coordination gaps and fiscal constraints. India’s assistance, therefore, operates as a stabilising external input helping bridge immediate capacity shortfalls while allowing Colombo to focus domestic resources on long-term recovery.
Unlike multilateral assistance, which often arrives with procedural delays, India’s bilateral support demonstrated operational flexibility and political decisiveness.
At the diplomatic level, the visit reaffirmed trust at a sensitive juncture in Sri Lanka’s economic recovery. The Prime Minister’s assurance that India will “stand shoulder to shoulder” in rebuilding efforts carries weight precisely because it echoes India’s past crisis interventions whether during fuel shortages, financial stress, or natural disasters.
Ultimately, India’s response to Cyclone Ditwah reinforces a broader regional reality: in times of crisis, geography and proximity matter. By aligning humanitarian action with diplomatic engagement, New Delhi has reinforced its role not only as Sri Lanka’s closest neighbour, but as its most dependable partner in moments of national stress.
Christmas Observances Resume in Bethlehem as Gaza Truce Brings Cautious Hope
Festive activities are gradually returning across the West Bank as a delicate ceasefire continues in the Gaza Strip, even as hundreds of thousands of displaced residents endure harsh winter conditions in temporary shelters and face critical shortages of basic necessities.
Marking the start of Christmas observances in Bethlehem, Cardinal Pierbattista Pizzaballa, the Latin Patriarch of Jerusalem, led the customary procession from Jerusalem to the city revered as the birthplace of Jesus. The ceremony followed his recent visit to Gaza’s Church of the Holy Family—the territory’s only Catholic parish—where he conveyed the Catholic Church’s solidarity with the local faithful.
Speaking after arriving at Manger Square, the Cardinal said he carried warm greetings from Gaza’s small Christian community, highlighting their determination to rebuild despite ongoing hardships. He also expressed hope that the Christmas season would be one of light and renewal amid continued uncertainty.
Sri Lanka Introduces Dedicated Child-Friendly Transport for Protection Services
The government has rolled out a dedicated Child-Friendly Transport System to improve how children are transported to and from Provincial Probation and Child Protection Departments, Minister of Women and Children’s Affairs Saroja Savitri Paulraj announced on Wednesday.Speaking at an official ceremony held at the ministry premises in Battaramulla, the minister said the initiative was introduced in response to persistent concerns about children being transported in prison vehicles. She noted that such practices often exposed children to distressing situations, including travel in buses clearly marked for prison use, sharing space with adult offenders, and, in some cases, being transported alongside alleged perpetrators. These experiences, she said, amounted to secondary victimisation within the justice system.
Minister Paulraj pointed out that the Supreme Court had also underscored the need for a specialised transport mechanism in its ruling on Fundamental Rights case S.C. (F/R) 335/2010.
As an initial step, five newly acquired Toyota vans have been distributed to Provincial Councils in the Southern, Sabaragamuwa, Western, North Western and Northern Provinces. She further explained that under the government’s policy framework, “A Prosperous Country – A Beautiful Life”, and the thematic vision “A Safe Childhood, A Creative Future Generation”, Rs. 250 million was allocated in the current budget for child transport facilities. In line with this allocation, nine vehicles—one for each province—were officially handed over yesterday.
To ensure the smooth operation of the new system, the government has created 54 new provincial-level positions, despite the ongoing suspension of public sector recruitment. Each province will be assigned six officers, including drivers, caretakers and security personnel. Recruitment has already begun, and specialised training programmes will be provided immediately after appointments, the minister said.
The transport system will be closely monitored and further strengthened where necessary. Minister Paulraj added that the government intends to intensify interventions in women’s and children’s welfare in the coming year, with the aim of improving social indicators alongside economic progress.
She also noted that the issue of safely transporting children under court orders—whether victims, suspects or offenders—has been debated for years. Such children are often placed temporarily in safe houses or detention centres, and transport arrangements had previously relied on the Prisons Department, raising serious ethical and child protection concerns. Addressing these issues, she said, was a key reason behind establishing the new child-friendly transport mechanism.
MP Archchuna Released on Bail After Court Appearance
Jaffna District Parliamentarian Ramanathan Archchuna was released on anticipatory bail today after being produced before the Colombo Magistrate’s Court.
The case relates to allegations that the MP obstructed the duties of police officers attached to the Colombo Fort Police. When the matter was previously taken up in court, Archchuna failed to appear, prompting the Colombo Fort Magistrate’s Court to issue a warrant for his arrest.Subsequently, the MP surrendered to the police and was produced before court. After considering the submissions, the Magistrate ordered his release on anticipatory bail, allowing him temporary freedom while legal proceedings continue.
Prime Group stands with children of Police families affected by Cyclone Ditwah
In the aftermath of Cyclone Ditwah, while Sri Lanka Police officers worked tirelessly to safeguard lives and property across the country, many of their own families endured significant hardship.
Recognising this silent struggle, Prime Group launched a national-level initiative to support the children of affected police families, providing essential educational supplies and ensuring that their education could continue uninterrupted despite the challenges they faced.
Prime Group supplied essential school materials to children affected by Cyclone Ditwah, helping them resume their studies with confidence and dignity.
Through this initiative, undertaken as a responsible corporate citizen, 1000 students across Sri Lanka received support, with an investment of Rs. 10 million.
The donations were handed over at a ceremonial event held at Sri Lanka Police Headquarters, attended by the Public Security and Parliamentary Affairs Minister, Public Security Ministry senior officials, the Inspector General of Police,
Senior DIGs, and representatives of the Police Family Welfare Association and the Police Seva Vanitha Unit, along with police officers.
Prime Group was represented by its Chairman, Co-Chairperson, CEO, and senior management. The initiative was carried out under the coordination of Aruna Prasad Lekamge and Prof. Krishantha Pathiraja.
Prime Group Co-Chairperson Sandamini Perera said, “Prime Group is honoured to stand with police families and support their children, as a gesture of gratitude for the selfless service rendered to our country. Despite facing personal loss and hardship, the officers of the Sri Lanka Police continued to serve the nation with unwavering dedication during Cyclone Ditwah.
Their commitment to safeguarding communities under the most challenging circumstances deserves our deepest respect.”
As Prime Group celebrates 30 years of leadership in Sri Lanka’s real estate sector, the Group continues to reinforce its commitment to building resilient communities and supporting the nation beyond business.
This program underscores Prime Group’s long-standing belief in creating lasting value for families and standing with those who serve the country in times of need.

Namal Rajapaksa Accuses Government of Undermining Police Independence
Sri Lanka Podujana Peramuna (SLPP) National Organiser and Parliamentarian Namal Rajapaksa has launched a strong attack on the Inspector General of Police (IGP), accusing him of failing to act independently in the face of alleged misconduct by members of the ruling government.
Speaking to the media about an incident in which National People’s Power (NPP) MP Shantha Padma Kumara is accused of assaulting a police officer, Rajapaksa said the IGP was functioning not as the head of the police force, but as a political appointee serving the interests of the NPP administration.
He argued that such incidents have fostered an atmosphere of fear within the police service, discouraging officers from performing their duties impartially due to concerns over political retaliation.
Rajapaksa further claimed that some MPs who previously accused the Rajapaksa family of involvement in drug-related activities are now allegedly connected to cannabis cultivation. He alleged that police officers who raided a cannabis plantation believed to be linked to a government MP were subjected to harassment, including the transfer of an officer involved in the operation.
According to Rajapaksa, the same MP later allegedly assaulted another police officer in a separate roadside incident following the raid.
He also accused the government of obstructing investigations into a traffic accident involving former Speaker Ashoka Ranwala, claiming that officers handling the case were transferred to suppress the inquiry.
Concluding his remarks, Rajapaksa alleged that political authority is being misused to interfere with law enforcement and questioned the IGP’s silence on these matters, calling it a serious failure of leadership within the police service.
Chinese Communist Party Delegation Holds Talks with JVP Leadership in Colombo
A high-ranking delegation from the Communist Party of China (CPC) held discussions with the leadership of the Janatha Vimukthi Peramuna (JVP) at the party’s headquarters in Colombo on Wednesday , reaffirming ties between the two political parties.The Chinese delegation was led by Wang Junzheng, a member of the 20th Central Committee of the CPC and Secretary of the Party Committee of the Xizang Autonomous Region. Also present were Chinese Ambassador to Sri Lanka Qi Zhenhong and Peng Xiubin, Director-General of the East and South Asian Affairs Bureau of the International Department of the CPC Central Committee, along with other officials.
Representing the JVP were its General Secretary Tilvin Silva, Politburo member and Minister of Industry and Enterprise Development Sunil Handunneththi, Central Committee member and Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, and several senior party figures.The discussions covered the history of cooperation between the CPC and the JVP, Sri Lanka’s current political developments, and collaborative initiatives carried out in 2025 under agreements reached during President Anura Kumara Dissanayake’s recent visit to China.
During the meeting, Tilvin Silva conveyed appreciation for the assistance extended by the Chinese government to Sri Lankans affected by Cyclone Ditwah. In response, Wang Junzheng reaffirmed that China would continue to provide support in the future.
Wang also referred to the successful conclusion of the 4th Plenary Session of the CPC’s 20th Central Committee held in October, as well as a related programme conducted in Sri Lanka earlier this week. He further shared perspectives on China’s ongoing discussions surrounding its 15th Five-Year Plan.
Both sides emphasized the importance of strengthening party-to-party engagement and explored ways to deepen cooperation between the CPC and the JVP in the year ahead.
Chinese Official Wang Junzheng Conducts Observation Tour at Galle Fort
Wang Junzheng, a member of the 20th Central Committee of the Communist Party of China (CPC) and Secretary of the CPC Committee of Xizang Autonomous Region, visited Galle Fort for an observation tour earlier today .
The Chinese delegation, headed by Wang, arrived at the historic fort in the morning and carried out a detailed inspection of the fort walls, with security personnel closely monitoring the proceedings.The tour was attended by Deputy Minister Nalin Hewage along with several other officials, who accompanied the delegation during the visit. The inspection forms part of the delegation’s broader engagement with Sri Lanka’s cultural and heritage sites
Sri Lankan National Detained in Tokyo Over Public Knife Incident
A Sri Lankan national has been arrested in Japan for an alleged breach of the country’s Swords and Firearms Control Law following an incident in central Tokyo, Japanese media reported.
The arrest took place on Monday after the man was observed holding a utility knife and causing injuries to himself in a public area near Shinagawa Station in Minato Ward. Witnesses reported that the individual was standing outside a Yoshinoya restaurant when the incident occurred.Police said the man sustained bleeding injuries to his hand and neck but remained conscious throughout the encounter. Law enforcement officers swiftly secured the surrounding area to ensure public safety and initiated dialogue with him.
After continued communication, officers were able to de-escalate the situation and convince the man to put down the knife, following which he was taken into custody for further investigation. Japanese authorities are continuing inquiries into the circumstances surrounding the incident.
Sri Lanka Seeks UNESCO Support for Post-Cyclone Ditwah Recovery
Sri Lanka’s Ambassador to France and Permanent Delegate to UNESCO, Manisha Gunasekera, held a high-level meeting with UNESCO Director-General Khaled El-Enany at the organization’s headquarters in Paris on December 19 to discuss assistance for Sri Lanka in the aftermath of Cyclone Ditwah.
During the discussion, Ambassador Gunasekera briefed the Director-General on the extensive impact of the cyclone and outlined the government’s rebuilding and recovery plans. She also expressed appreciation for UNESCO’s rapid deployment of emergency aid under the Heritage Emergency Fund, which helped stabilize and conserve archival records damaged by flooding.
In response, Director-General El-Enany conveyed his condolences to Sri Lanka and reaffirmed UNESCO’s commitment to providing both immediate and long-term support. He highlighted plans for an integrated intersectoral response tailored to Sri Lanka’s priorities, including the recovery of cultural heritage, educational support for schools, psychosocial assistance, and technical cooperation to enhance hydrological risk assessment and early warning systems. Assistance will be coordinated through UNESCO’s Regional Office in New Delhi.
The meeting also included a ceremonial element, with Ambassador Gunasekera delivering a congratulatory message from Foreign Minister Vijitha Herath on the Director-General’s election, emphasizing Sri Lanka’s commitment to supporting UNESCO’s mandate.
Director-General El-Enany acknowledged the efforts of Prime Minister and UNESCO National Commission Chairperson Harini Amarasuriya and Minister Herath for Sri Lanka’s continued engagement with UNESCO.
Senior UNESCO officials attending the meeting included Ahmed Zaouche (Chief, Crisis Preparedness and Response), Omar Monieb (Chief, Relations with Member States), and Manh Ha Tran (Chief, Asia and the Pacific, Priority Africa and External Relations Sector). Ambassador Gunasekera was accompanied by Rifa Wadood, Minister/UNESCO at the Sri Lankan Permanent Delegation.
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