News
Relief Plan Exposes Deeper Cracks in Sri Lanka’s Fragile Economy
Sri Lanka’s latest emergency relief push rushed out as floods and landslides devastate homes, highways, and entire districts has triggered fresh scrutiny over the government’s dependence on costly imports and ad-hoc crisis management. Behind the promises of rapid delivery lies a deeper question: can an economy still recovering from its worst financial collapse realistically sustain another round of disaster-driven expenditure?
Commissioner General of Essential Services B.K. Prabath Chandrakeerthi confirmed that the state will import frozen vegetables that meet Agriculture Department standards to fill immediate food shortages. But with foreign reserves under stress and the rupee already vulnerable, economists warn that every new import bill tightens the fiscal noose. Floods have destroyed more than 15,000 homes and left over 200 roads impassable, meaning transport costs—and by extension, retail prices are set to surge in the weeks ahead.
While the government plans to publicise district-level lists of required essentials to help suppliers respond faster, past crises show that such decentralised reporting is often plagued by inconsistencies, political interference, and poor verification. Several District Secretariats in highly affected provinces have yet to restore full operations, raising doubts over the accuracy of the needs assessments that will drive procurement decisions.
Officials have opened discussions with Litro Gas to safeguard the distribution of LP gas, but the state’s track record suggests that logistical bottlenecks, not supply shortages, will determine whether cylinders reach rural and hill-country households. Landslides have severed key routes in Badulla, Ratnapura, Nuwara Eliya, and Matale areas heavily dependent on timely fuel and gas deliveries.
The government’s medium-term plan aims to create a centralised list of needs through the Prime Minister’s Office, giving local and international donors a clearer view of what to send. Aid arriving from abroad will be processed through the Disaster Management Centre to secure tax concessions, a move expected to speed up Customs clearance.
However, policy analysts argue that this system essentially outsources disaster recovery to donors, highlighting the state’s depleted fiscal capacity. Sri Lanka’s public debt remains above 120% of GDP, and emergency imports—even essential ones—could widen the trade deficit at a time when foreign exchange inflows have slowed. The reliance on frozen food imports also risks hurting recovering local farmers once floodwaters recede, unless the government phases out imports quickly.
Critics say the current relief framework is reactive rather than strategic. Without real-time data integration across ministries, digitised supply chains, and stronger district administration, the risk of mismatched aid, duplication, and delays remains high.
For thousands displaced across multiple provinces, the real test is not the government’s announcements but whether food, gas, and basic necessities arrive before shortages turn into a secondary humanitarian crisis. As economic vulnerabilities collide with climate disasters, Sri Lanka faces a painful question: how many more shocks can a weakened economy absorb?
Severe Flooding Forces Temporary Closure of Chilaw General Hospital
The Chilaw General Hospital has been closed indefinitely after heavy rainfall triggered severe flooding that left the facility almost completely underwater, Hospital Director Dr. Sumith Attanayake announced.
According to Dr. Attanayake, more than five feet of water has engulfed the hospital grounds, halting all medical operations and causing major disruptions to patient care.In response to the emergency, the Sri Lanka Air Force deployed helicopters to transfer critically ill patients to Colombo and Puttalam hospitals. Once water levels receded slightly, other patients were shifted to Wariyapola and Kurunegala hospitals for continued treatment.
The flooding has also damaged key equipment, including the hospital’s CT scanner, and several wards remain inundated, creating serious challenges for restoring services.Dr. Attanayake stated that the hospital will resume operations only after essential repairs and cleanup work are completed, though a specific timeframe cannot yet be given. He urged the public to avoid bringing any patients to the hospital until further notice.
Pathfinder Foundation to conduct webinar on management of public finances
The Pathfinder Foundation (PF) will hold a webinar on the 2 December 2025 at the Colombo Club, Taj Samudra. The event primarily focuses on the theme, “Managing Public Finance: The South Asian Experience” and aims to bring together officials, scholars, representatives from leading think tanks, and related field experts.
Pathfinder Chairman Bernard Goonetilleke will deliver the opening remarks. The key resource persons for the event include; former International Monetary Fund Asia and Pacific Department Director Anoop Singh, a PF Distinguished Fellow and former Central Bank of Sri Lanka Governor Dr. Indrajit Coomaraswamy, and a Distinguished Fellow and former Ministry of Finance and Planning Secretary Dr. R.H.S. Samaratunge.
This discussion is organised as a tribute to Anoop Singh, who was the IMF’s Resident Representative in Colombo during the landmark economic reform program in 1977. During his tenure, he worked very closely with the Sri Lankan authorities to design wide-ranging reforms of the country’s trade and payments system. This marked a radical shift from a strongly dirigiste, inward-looking economy to a more market-oriented system. He was also supportive of Sri Lanka during his subsequent tenure as Director of the IMF’s Asia and Pacific Department. He was known for his strong problem-solving approach to advancing the agenda.
This webinar aims to foster a constructive and insightful discussion on the importance of effective public financial management. As global economic dynamics evolve amid changing trade patterns, the importance of sound fiscal governance has never been greater. The discussion in this webinar will highlight practical pathways for countries, especially in South Asia, to strengthen fiscal resilience, improve debt management, and align public finance with long-term developmental objectives. Furthermore, the event will focus on a detailed examination of the causal factors, effects and other implications of recent crisis-like situations that rapidly evolved into full-scale socio-political upheavals, as seen in Sri Lanka (2022), Bangladesh (2024), and Nepal (2025) – and how economic mismanagement worsened and accelerated these crises.
The webinar will be conducted in a hybrid format, enabling both online and in-person attendance (by invitation only). Interested participants are encouraged to join the webinar by filling out the registration form available at the link below.
https://docs.google.com/forms/d/e/1FAIpQLScwqqXucGDAQj8vUemd0ydNQDFo9V_C5kk-XH0PyZ4DDaD6Yg/viewform?usp=dialog
The Pathfinder Foundation continues to promote dialogue among relevant field experts, aiming to lead Sri Lanka towards a sustainable and prosperous future.
(DailyFT)
SLAF Urges Public to Avoid Unregulated Drone Use During Disaster Relief Operations
The Sri Lanka Air Force (SLAF) has called on the public to cooperate when operating drones in areas affected by the ongoing disaster response.Authorities warned that unregulated drone flights can interfere with Humanitarian Assistance and Disaster Relief (HADR) missions, posing serious risks to air operations conducted by the SLAF and other emergency response agencies.
The SLAF emphasized that such incidents could endanger the lives of aircrew, jeopardize critical air assets, and put people on the ground at significant risk, urging the public to follow guidelines and avoid flying drones near relief operations.
India permits Pakistani humanitarian overflights to Sri Lanka
The Foreign Office (FO) received permission from India to use its airspace for humanitarian aid flights to Sri Lanka to provide flood relief, diplomatic sources confirmed to Dawn on Monday.
The Sri Lankan government called for international aid and used military helicopters to reach people stranded by flooding and landslides triggered by Cyclone Ditwah. At least 355 people have been killed, Sri Lankan officials said on Monday, with another 366 still missing.
An official in the foreign ministry told Dawn that earlier this evening, the Indian high commission sent written confirmation allowing humanitarian overflights through Indian airspace. The flights have been cleared to start tomorrow.
The toll in deadly flooding and landslides across parts of Asia climbed past 1,100 on Monday as Sri Lanka and Indonesia deployed military personnel to help survivors.
Separate weather systems brought torrential, extended rainfall to the entire island of Sri Lanka and large parts of Indonesia’s Sumatra, southern Thailand and northern Malaysia last week.
Much of the region is currently in its monsoon season but climate change is producing more extreme rain events and turbocharging storms.
The relentless rains left residents clinging to rooftops awaiting rescue by boat or helicopter, and cut entire villages off from assistance.
India and Pakistan have closed their airspaces to each other’s aircraft since tensions between them escalated in April in the wake of an attack in India-occupied Kashmir’s Pahalgam that killed 26 people and the subsequent four-day conflict. In October, Islamabad extended the airspace ban until November 24.
(Source - Dawn)
Sri Lankan Government Launches GovPay Platform for Disaster Relief Donations
The Sri Lankan government has introduced a new mechanism allowing citizens and organisations to contribute donations through the ‘GovPay’ digital payment platform.
This initiative aims to streamline the collection of funds to provide relief and support for communities affected by the recent adverse weather conditions across the country. Authorities encourage the public to use the platform to assist in ongoing disaster response and recovery efforts.
Laugfs Confirms No Domestic Gas Price Change for December
Laugfs Gas PLC has announced that there will be no adjustment to domestic gas cylinder prices for December 2025. The confirmation was issued by Dr. Niroshan J. Peiris, Cluster Director and CEO of the company.According to the announcement, gas prices in the Colombo District will remain as follows: a 12.5kg cylinder at Rs. 4,100 and a 5kg cylinder at Rs. 1,645.
The company stated that these rates will stay unchanged for the entire month, offering clarity to consumers amid ongoing price fluctuations in the energy market.
Over 15,000 Homes Destroyed, Major Infrastructure Damaged in Cyclone Ditwah – OCHA
The UN Office for the Coordination of Humanitarian Affairs (OCHA) reports that more than 15,000 houses have been destroyed and significant infrastructure has been severely impacted following Cyclone Ditwah, which brought some of Sri Lanka’s worst flooding since the early 2000s.
According to initial assessments, over 200 roads are still inaccessible, at least 10 bridges have been damaged, and parts of the railway network and national power grid have been affected. OCHA notes that detailed evaluations are ongoing as authorities work to restore essential services and reach affected communities.
Floodwaters Split Vadduvakal Bridge in Two, Causing Major Transport Disruption
The Vadduvakal Bridge in Mullaitivu has suffered severe structural damage after rising floodwaters caused the bridge to break apart in two separate locations, the Road Development Authority (RDA) confirmed today.
Officials said the collapse has cut off a key route used by residents and essential services, creating major transport difficulties in the region. Engineering teams have been dispatched to inspect the damage and determine the stability of the remaining structure.The RDA has advised motorists and pedestrians to keep away from the affected area due to safety risks. Restoration work will begin once water levels recede and conditions are safe for repairs.
All-Party Meeting Called by Ranil Wickremesinghe to Discuss Disaster Management Steps
Former President Ranil Wickremesinghe has taken steps to convene all party leaders to discuss the steps to be taken in the face of the adverse situation that faces Sri Lanka following Cyclone "Ditwa".
All party leaders are scheduled to meet at the former President's Political Office on Flower Road on Wednesday (3). United National Party Chairman Vajira Abeywardena said that the steps to be taken in the future will be decided at the party leaders' meeting, following discussions based on the experience gained in successfully facing previous natural disasters under Ranil Wickremesinghe's leadership.
Vajira Abeywardena said that Ranil Wickremesinghe is expected to brief party leaders at this meeting on the steps taken during the floods of 2003 and 2016 and the post-flood period. Vajira Abeywardena said that this is the first time that all political party leaders in and outside Parliament are being convened in one place after this natural disaster.
Welikada prison inmates donate today’s lunch to flood affected
The inmates of the Welikada prison have donated their lunch today to the people in Colombo, who were affected by the adverse weather.
The dry food used for the preparation of the inmates' lunch has been donated following a request by the inmates from the prison authorities.
The dry food included 750 kgs of rice, 100 kgs of chick pea, 100 kgs of cowpea (Black-eyed peas), 100 kgs of sugar and 100 kgs of dhal and several other items.
The food items were handed over to the Deputy Mayor of the Colombo Municipal Council Hemantha Kumara today.
(Source - Daily Mirror)
New Zealand Extends Support to Sri Lanka with NZ$1 Million for Disaster Relief
New Zealand has pledged NZ$1 million to support emergency humanitarian relief efforts in Sri Lanka in the aftermath of Cyclone Ditwah, which has caused widespread devastation across the island.
Announcing the contribution, the New Zealand government extended its heartfelt condolences to the families affected by the disaster. Officials stated that New Zealand’s thoughts are with the people of Sri Lanka during this challenging and emotional period.
The funding will be directed toward immediate humanitarian needs, including emergency supplies, relief coordination, and support for affected communities as recovery operations continue.
Sri Lanka has welcomed the assistance as the country works to restore essential services and provide urgent aid to thousands impacted by the cyclone.
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