Post-Tsunami Recovery: Lessons from Case Study 1. Sri Lanka

Abstract

The tsunami of December 26, 2004 left Sri Lanka with over 30,000 people dead, almost a million displaced and an estimated 150,000 people lost their primary source of livelihood. There was massive damage to infrastructure and capital assets; estimated at around US$1 billion (4.5 per cent of GDP), particularly in tourism and fisheries sectors. The medium-term financing needs were estimated to be around US$1.5–1.6 billion (7.5 per cent of GDP). It is expected to reduce 2005 GDP by around 0.5–1.0%. The report raises issues in the following areas and presents several related policy recommendations: livelihood related cash payments to households; assistance for rebuilding houses; titles to new houses; buffer zone rules; early warning and disaster management systems; coordination of donor assisted activities and macroeconomic policy issues.