Category: Daily Financial Times

United Nations Development Program (UNDP) has called on international partners to provide affordable financing and recovery instruments for Sri Lanka, warning that the country cannot absorb additional debt to rebuild after Cyclone Ditwah, which flooded 1.1 million hectares and exposed 2.3 million people nationwide.

The organisation said recovery efforts now hinge on targeted external support to prevent the disaster from deepening into long-term economic and social fragility.

‘After one of its worst economic crises and a slow but steady recovery underway, Sri Lanka cannot shoulder more debt to cover the costs of a rebuild from this massive natural disaster,’ UNDP Resident Representative Azusa Kubota said.

‘International partners must step up with affordable financing and innovative instruments that enable a rapid recovery and rebuilding with greater resilience, without the country falling off the debt cliff,’ said UNDP Resident Representative Azusa Kubota.

UNDP’s early recovery analysis identifies high-need regions where cyclone impacts overlap with pre-existing vulnerabilities, particularly in Puttalam, Kilinochchi, Mullaitivu, the central highlands, and parts of the North and East.

These areas face combined pressures from damaged homes, disrupted livelihoods, weakened local governance systems, and reduced access to basic services. Over half of the exposed population was already living with high debt and unstable incomes before the cyclone, a factor UNDP says will slow economic recovery without intervention.

The organisation has outlined a set of sequenced early recovery priorities requiring urgent financing.

These include debris and waste clearance, rehabilitation of community infrastructure and service delivery lifelines, support for MSMEs and household income generation, and replacement of lost civil and financial documentation so affected families can reconnect to banking, social protection schemes, and recovery assistance.

Temporary reinforcement of local governance systems will also be required to manage targeting, outreach, and registries as communities return home.

‘Where high flooding and high vulnerability overlap, recovery is likely to be slower and more costly. Early action in these locations is critical,’ Kubota said. UNDP added that the concentration of exposure in Colombo and Gampaha has placed heavy pressure on essential public services and underscored the need for permanent solutions for communities living in disaster-prone areas.

Cyclone Ditwah also generated more than 240,000 tons of non-construction waste and over 60,000 cubic metres of construction debris.

UNDP warned that clearance costs will rise as verification progresses and that disruptions to transport links, agriculture, and access to essential services will continue to impede recovery.

Agriculture-related losses are significant, with over 530,000 hectares of paddy land flooded and several districts already experiencing food-security pressures.

UNDP Crisis Bureau Crisis Readiness, Response and Recovery Chief Devanand Ramiah said the cyclone was a reminder of how quickly compounding risks can materialise, adding that the priority now is to restore essential services, repair transport networks, and strengthen resilience systems.

UNDP said it is working with the Government, development partners, and affected communities on immediate relief and early recovery efforts, but stressed that external financing will be pivotal to stabilising livelihoods and ensuring a recovery that does not add to Sri Lanka’s debt burden. Ditwah floods 20% of Sri Lanka, triggers 1,200 landslides, heightens food insecurity: UNDP

UNDP geospatial analysis shows cyclone exposed 2.3 m people in worst flooding in decades

Nearly 720,000 buildings exposed, including 243 hospitals and hundreds of schools

Over 16,000 km of roads and 480 bridges exposed to flooding

Over 278 km of railway lines and 35 rail bridges affected

More than 240,000 tons of non-construction waste, over 60,000 cubic metres of construction debris generated

Over 530,000 hectares of paddy land flooded, with Dimbulagala alone accounting for nearly 19,000 hectares

20-30% of affected households lack dry food stocks to last a week

Cyclone Ditwah inundated 1.1 million hectares, or about 20% of Sri Lanka’s land area, and exposed 2.3 million people to flooding, according to new UNDP geospatial analysis that expands on earlier assessments of the country’s worst flooding disaster in decades.

The cyclone also triggered nearly 1,200 landslides across the hilly interior, compounding access constraints and slowing rescue operations.

UNDP’s integrated analysis shows that the greatest early recovery needs are in areas where flooding and landslides converge with pre-existing socioeconomic vulnerability.

Divisional Secretariats such as Mundel and Arachchikattuwa in Puttalam, Kandavalai in Kilinochchi, and several locations in the central highlands face overlapping pressures from damaged homes, disrupted livelihoods, and reduced access to basic services compounded by weakened local governance systems.

These communities are unlikely to recover without targeted interventions that stabilise incomes, restore mobility, and reconnect essential services.

Flood severity varied across the island. The largest inundation was recorded in Dimbulagala in Polonnaruwa, with more than 23,000 hectares submerged. Significant flooding also occurred in Kandavalai in Kilinochchi, Maritimepattu in Mullaitivu, and in Welikanda and Medirigiriya in Polonnaruwa.

In the central highlands, districts such as Nuwara Eliya, Badulla, and Kegalle experienced intense rainfall that produced localised slope failures rather than large floodplains. Ududumbara in Kandy District recorded the highest number of landslides at 135, while Laggala, Kothmale East, Lunugala, and Passara all registered more than 60 events each.

The exposed population includes roughly 1.2 million women, 522,000 children and youth, and 263,000 older persons.

Kolonnawa in Colombo District recorded the highest exposure with over 150,000 people living in flooded areas.

Kolonnawa, Wattala, Kelaniya, and Dehiowita are among the few divisional secretariats where more than half the population was exposed, underscoring the scale of recovery challenges in densely populated low-lying settlements.

Nearly 720,000 buildings were exposed to floodwaters, including 243 hospitals and hundreds of schools.

Ja Ela in Gampaha District recorded more than 44,000 exposed structures, while Kolonnawa, Kaduwela, Katana, and Wattala each recorded over 35,000.

More than 16,000 kilometres of roads and 480 bridges were exposed to flooding, with Katana, Gampaha, and Ja Ela each exceeding 300 kilometres of affected roads. Over 278 kilometres of railway lines and 35 railway bridges were also exposed, reducing connectivity and access to services.

Preliminary debris assessments indicate that the cyclone generated more than 240,000 tons of non-construction waste and over 60,000 cubic metres of construction debris.

Colombo faces the largest debris load due to dense settlement patterns, but substantial volumes are also reported in Badulla and Puttalam. Clearance needs will evolve as field verification progresses.

Agricultural exposure is significant. More than 530,000 hectares of paddy land were flooded, with Dimbulagala again the most affected at nearly 19,000 hectares. Other heavily impacted areas include Welikanda, Medirigiriya, Horowpathana, and Dehiattakandiya.

In several of these locations, 20-30% of households lack sufficient dry food stocks to last a week, indicating heightened food-security risks.

Japan’s Hideki Matsuyama beat Sweden’s Alex Noren in a one-hole play-off to win his second Hero World Challenge title in Albany.

Matsuyama, 33, birdied the replayed 18th hole to take victory at the Tiger Woods-hosted event and claim the $ 1,000,000 (£ 750,000) prize pot.

Both players had finished with eight-under-par rounds of 64 to end tied on 22-under on Sunday.

The third round began with five players tied for the lead, but it was Austrian Josef Straka who led two-time defending champion Scottie Scheffler by one shot heading into the final round.

Straka carded 68 to finish one shot back in third position, while world number one Scheffler finished tied fourth with fellow American JJ Spaun at 20-under.

England’s Justin Rose was sixth at 18-under after completing his best round of the week with 66.

The 13th edition of EXCON 2025, the world’s third-largest construction equipment exhibition organised by the Confederation of Indian Industry (CII), opened yesterday at the Bangalore International Exhibition Centre (BIEC), Bengaluru, and will conclude on 13 December.

The event also attracted two Sri Lankan companies, LAUGFS Rubber and OTR Enterprise Solutions, both exporters of tyres and steel rims for large-scale automobiles.

Both companies are looking to expand their presence by forming new partnerships in India to increase exports.

EXCON 2025 Co-Chairman Deepak Shetty said, ‘The construction equipment industry is committed to making India the second largest and fastest-growing construction equipment (CE) market globally, tripling its size to $ 25 billion and emerging as a global manufacturing and export hub.’

Currently, Indian CE products are exported to over 135 countries, including Sri Lanka.

CII President Designate and EXCON 2025 Chairman R. Mukundan said, ‘India is on a historic growth trajectory, aiming to become a $ 30 trillion economy by 2047, with infrastructure set to be the backbone of this transformation.’

‘Mega projects like Bharatmala, high-speed rail, and Smart Cities under PM Gati Shakti are driving connectivity and urban development at an unprecedented scale.’

‘The construction equipment industry is committed to making India the second largest and fastest-growing CE market globally, tripling its size to $ 25 billion and overtaking China to place second only to the United States.’

‘As the nation moves toward its $ 30 trillion goal, EXCON, organised by the Confederation of Indian Industry (CII), will continue to empower stakeholders, foster collaboration, and drive modernisation, making it the epicentre of India’s infrastructure revolution,’ added Mukundan.

CII Director General Chandrajit Banerjee said, ‘EXCON offers unparalleled opportunities for networking and collaboration. Spread across 3,500,000 sq. ft., the event will feature over 1,250 exhibitors, including participants from 20 countries and seven dedicated international pavilions, and unveiled more than 300 product launches.’

Recognised as a leading platform for introducing innovative vehicles and technologies, EXCON exemplifies the continued modernisation and dynamic growth of India’s construction ecosystem.

Following the severe devastation caused byCyclone Ditwah, President Anura Kumara Dissanayake declared a State of Public Emergency across the country. The Government justified the move based on the necessity of ensuring delivery of essential services as well as carrying out relief activities in the aftermath of one of the worst natural disasters in the contemporary history of Sri Lanka.

Among others, the emergency regulations given broad powers of search, seizure, arrest, and detention without warrant for persons suspected of involvement in various offences under specified sections of the penal code, particularly offences related to violence, damage to property, or threats to public order. The administration views that such sweeping powers are necessary to accelerate disaster response in view of the havoc and mayhem experienced by many parts of the country, affecting thousands of families.

However, just days after the regulations were declared, Public Security and Parliamentary Affairs Deputy Minister Sunil Watagala was seen instructing Police to use emergency regulations and act against individuals who engage in defamatory campaigns on social media targeting the President and certain ministers of the Government. Watagala had remarked the attacks directed at the President and Government lawmakers via the social media were unbearable and had pointed out that such harsh criticism was levelled with the intention of manipulating public opinion.

The Sri Lanka Working Journalists Association (SLWJA) issued a statement criticising the Deputy Minister’s controversial remarks. The organisation which stands for the cause of media freedom had observed that the Deputy Minister’s threat represents a worrying trend in the backdrop of several prior instances where the Government had allegedly threatened media freedom. The media rights group had described the Colombo District MP’s warning as an attempt to suppress freedom of expression under the guise of disaster management.

Ironically, while in the Opposition, the sympathisers and supporters of the NPP/JVP exploited the reach of social media to severely attack the mainstream political parties of the country. Some of their extremist followers even went to the extent of expressing joy and pleasure through social media platforms about the death of politicians attached to their rival political parties. During their stint in the Opposition, political activists of the NPP vehemently slammed governments in power for errors of both omission and commission whenever a nature-related disaster like flood or landslide took place. Especially, leaders of the ruling political party used to strongly emphasise the importance of having early warning systems as well as well-developed mechanisms of preparation. The Government’s unwillingness to tolerate criticism and dissent comes at a time when it is facing widespread criticism for failing to act decisively and adequately to mitigate the painful consequences of the disaster despite prior warnings by both the Department of Meteorology and Department of Irrigation. Even two days after the full brunt of the catastrophe, President Dissanayake failed to declare a national disaster situation despite requests from the Opposition. According to The Indian Express newspaper, the India Meteorological Department had issued 3-hourly and 6-hourly weather updates about the cyclone and all the information had been shared with its southern neighbour in a routine manner. The economic loss from Cyclone Ditwah far exceeds the damages caused to the economy by the horrendous Boxing Day Tsunami two decades ago. Although the number of fatalities is considerably less than the deaths caused by Tsunami, a substantial number of individuals have lost their properties and businesses. Adding to the misery, many children have become orphaned too. In the light of the overwhelming agony the nation is going through, the arrogance displayed by the Government is simply not acceptable.

Ruling party politicians would be best served by acting proactively to restore the livelihoods of those who got decimated from the cyclone without getting distracted by criticism and various other attacks by their political rivals.

The Microfinance and Credit Regulatory Authority Bill that was defeated by communities affected by microfinance, women victims and community credit providers in April 2024, has reincarnated. The one gazetted in October 2023, with zero community consultations, was a joke. Instead of regulating big finance companies at the heart of the microfinance crisis in Sri Lanka, the Bill proposed regulating community credit providers. People protesting succeeded in stopping the Bill from moving forward. The amended version gazetted on 17 November 2025, is a tragedy, repeating the old Bill and missing an incredible opportunity to learn from community practices to formulate a pro-people regulatory framework, strengthen community financing, protect the rights of credit consumers, and curb profit-driven lending.

Even though ensuring the protection of microfinance consumers is a core function of the Regulatory Authority, the responsibility is delegated to the licensed moneylenders and microfinance providers

From a flawed interpretation to a flawed policy

The Bill that saw the light of day after five years of labour in 2023 was useless to begin with. Not only did it lack a clear vision for regulating the most necessary to be regulated and protecting credit consumers, but it also risked conflating community credit providers with illegal and usurious money lenders. Despite the prolonged struggle by women victimised by microfinance (since 2017), the drafters of the Bill had shown no sign of understanding the depth and breadth of the microfinance crisis, nor any inclination to propose the necessary regulations to safeguard people from predatory lending. The Annual Report 2019 of the Central Bank (CBSL), which the Supreme Court quoted in framing its determination (Box 13, p. 311-312), blames informal and undocumented moneylenders for multiple loans and over-indebtedness. While the problem of money lenders has been a perennial problem for low-income people, the modern microfinance problem is far from the creation of moneylenders. Both the Annual Report 2019 and the Supreme Court’s determination on the Bill failed to capture the reality faced by low-income women trapped in multiple loans with big finance companies.

On the part of the CBSL, defining the microfinance crisis as the making of the money lenders serves to rescue it from neglecting to regulate the Licensed Finance Companies (LFCs) engaged in microfinance businesses. According to the CBSL, the microfinance loan portfolio of the LFCs by 2024 was only Rs. 0.0228 trillion, equivalent to 1.9% of their gross loan portfolio. It is a small portion, not significant to regulate, CBSL opines. However, data on the volume of microfinance loans shows that LFCs have disbursed far more money than smaller microfinance institutions combined. LOLC, one of the biggest microfinance providers in Sri Lanka, acknowledges that ‘personal finance, previously known as ‘microfinance’, accounts for a ‘significant segment under lending umbrella’ (p. 16, 2024/25 Annual Report). According to the company, ‘personal finance’ follows ‘strategi[c] rebrand[ing] to better reflect its evolving scope and broader appeal cater[ing] primarily to grassroots-level customers’ (p. 16). LOLC’s personal loan portfolio by 31 March 2025, accounted for Rs. 24 billion. In 2024/25 year alone, LOLC disbursed Rs. 17 billion as microfinance loans.

We recommended that Sri Lanka also adopt a tier system to regulate microfinance, like that in India, exempting smaller community-based initiatives from more burdensome regulations

LFCs have better access to funds, for example, foreign finance capital provided by international investment funds such as the Asian Development Bank (ADB), FMO, International Finance Corporation (IFC), Swedfund, and the World Bank, which enhances their ability to give out more loans than smaller microfinance institutions or money lenders. For lack of other official evidence, money recovery cases in the Small Claims Courts at District Courts are also a good illustration of the sources of the microfinance crisis. About 95% of the pending cases are filed by the LFCs.

The CBSL’s aversion to regulate LFCs to safeguard finance consumer protection is not limited to microfinance victims. Various incidents, including violent incidents such as killings and seizures of property related to leasing services, are examples of how LFCs violate the rights of the finance consumers. The refusal of the CBSL to regulate illegal debt recovery activities culminated recently when a group of vehicle seizers held a press conference, demanding legal recognition for the services they render to safeguard the stability of the financial system.

Community proposals to amend the Microfinance and Credit Regulatory Authority Bill 2023

After the Legal Division of the Ministry of Finance withdrew the 2023 version of the Bill in April 2024, the Development Finance Division of the Ministry invited three community representatives to provide their input on amending the Bill. There was no public call for community consultations. The Director General of the NGO Secretariat, through a personal connection, reached out to a collective that represents us, the writers of this article. Over a few meetings held from 18 September 2024 until the submission of the Working Committee report to Finance Ministry Legal Division Additional Director General A.K.D.D.D. Arandara on 9 January 2025, intervened to deepen bureaucrats’ understanding of the microfinance crisis and call for a fresh approach to imagine regulations from the point of view of microfinance consumers and community credit providers.

Despite the prolonged struggle by women victimised by microfinance (since 2017), the drafters of the Bill had shown no sign of understanding the depth and breadth of the microfinance crisis

The microfinance crisis

The microfinance crisis that erupted after 2017 in the form of suicides, financial violence and protests is an outcome of the unbridled release of ‘quick and easy’ loans at high interest rates. Debt issued to initiate income-generating activities but not structured with a grace period to ensure that debt is serviced through income generated, compels borrowers to take new loans to meet swift repayment obligations in the form of weekly or monthly instalments. Borrowers turn to other microfinance companies eager to lend and meet their lending targets. Eventually, borrowers get trapped in a vicious cycle of debt, including formal LFCs, MFIs, moneylenders, cooperatives, community credit providers, friends and family. Experiences of the microfinance borrowers reveal that multiple loans are built into the business model of the LFCs. Some big LFCs have graduated microfinance borrowers to personal loans while holding land grants as collateral.

The microfinance debt bubble is a product of profit-driven lending and a good example of the commercialisation of the microfinance business. Apart from predatory lending, LFCs have also poached social security transfers and cash grants from the borrowers who cannot repay their debts. In addition, unpayable debt issued by LFCs has given money lenders a lifeline. The distressed borrowers, without other means, resort to money lenders to obtain funds to meet debt service obligations. Profit-driven microfinance has created a conducive ecosystem for predatory lending, whether formal or informal, to coexist.

We pointed out that microfinance has excluded low-income women from the formal financial markets instead of promoting financial inclusion

We pointed out to the Working Committee that containing pro-profit lending should be at the heart of regulating microfinance businesses. Scaling down microfinance businesses from a commercial enterprise while strengthening community credit initiatives and cooperatives as alternatives is also essential to soften the debt crisis. We proposed that the Bill adopt a tight definition of microfinance business as small loans issued to low-income women for income-generating purposes, without collateral or securities. After studying microfinance regulations in the neighbouring countries such as India, Nepal, and Bangladesh, we recommended that the regulators adopt strict legally enforceable prohibitions against garnishing social security provisions such as debt payments, multiple loans, loan caps for vulnerable communities, and designate permissible debt payments as a ratio of monthly household income, to ensure microfinance consumer protection while discouraging pro-profit lenders, either formal or informal, from remaining in the microfinance business.

Community credit providers

The Bill reduced credit providers into two categories: 1) moneylenders, 2) microfinance providers and eliminated the identity and existence of community-credit providers. A significant component of the community credit providers represented by community-based organisations (CBOs) is the creation of State-centric, UN-aided rural development programs from the late 1980s. Others include grassroots community organisations such as Death Donation societies and mutual aid societies, which represent collective initiatives from below to respond to emergencies at the village level. While the latter illustrates more voluntary and communal initiatives by the people and for the people, the former stand for State-mediated and externally supported organised attempts to empower women, alleviate poverty, and regenerate livelihoods. Both versions rely on the principles of solidarity and mutual aid rather than on profit, unlike money lenders or microfinance providers. Without recognising such a qualifying difference, the Bill attempted to subsume community-credit providers as money lenders and microfinance providers.

The microfinance debt bubble is a product of profit-driven lending and a good example of the commercialisation of the microfinance business

Our efforts in the Working Committee where to place the identity, functions, and interests of community credit providers, both formal and informal, on the regulatory agenda. We contested the erasure of community-credit providers and opposed the imposition of an overarching regulation by a Regulatory Authority, which is antithetical to autonomous community-owned initiatives to address rural credit. We recommended that Sri Lanka also adopt a tier system to regulate microfinance, like that in India, exempting smaller community-based initiatives from more burdensome regulations. Given the distinct nature of community-credit organisations, we proposed the representation of community-based credit practitioners on the Board of the Regulatory Authority.

The expansion of the Credit Information Bureau (CRIB)

According to both the CBSL and the Supreme Court determinations, the illegibility of low-income borrowers for creditworthiness is a major reason for multiple loans and over-indebtedness. According to them, the answer is to expand the Credit Information Bureau (CRIB) to include

moneylenders.

As profiting from poverty, as in the case of microfinance, became a popular practice over the last 20 years in Sri Lanka, CRIB has conferred greater power to creditors. Banks and finance companies manipulate their customers’ debt to refinance loans, thereby denying debt relief and artificially lowering Non-Performing Loans (NPLs). In many cases, banks and finance companies have also used CRIB to transfer the risk of lending to the low-income customers by demanding higher interest rates. With the deluge of unpayable debt consolidating and propelling mass defaults, a vast majority of low-income people have been shut out of accessing safe, cheap and subsidised credit from formal banks and finance companies. The level of financial disenfranchisement that CRIB has brought about to low-income people is already creating a massive socio-economic problem at the community level. However, the CBSL, without cognisance of peoples lived experiences, pushes for the CRIB to be expanded.

During the few interactions within the Working Committee, we raised awareness among officials of the CBSL and the Development Finance Division of the Finance Ministry about how CRIB actually works for low-income borrowers. We pointed out that microfinance has excluded low-income women from the formal financial markets instead of promoting financial inclusion. We also opposed initiatives to expand the web of CRIB to include community-based organisations that serve as alternatives for low-income people to source agricultural and other urgent credit needs.

The CBSL’s aversion to regulate LFCs to safeguard finance consumer protection is not limited to microfinance victims

Community consultations on the Bill and preaching to deaf ears

The amended version of the Bill, gazetted on 17 November, reveals that our efforts to bring community interests to the table have been an attempt to cast pearls before swine. The Bill has reappeared essentially unchanged with LFCs exempted from regulations of the Credit Regulatory Authority, community-credit providers wiped out from the nomenclatures, grassroots community credit providers reduced to moneylenders, and CRIB expanding to the level of mutual aid societies. Even though ensuring the protection of microfinance consumers is a core function of the Regulatory Authority, the responsibility is delegated to the licensed moneylenders and microfinance providers. The Authority also overlooks the imbalance of power between creditors and debtors. It imposes on credit consumers the burden of saving themselves as a form of legal liability.

As there is no national study on the microfinance crisis to inform policy making, we did our best to bring in on-the-ground experiences to update policymakers. We underscored the importance of systematic studies and data to guide policy making rather than misinformation, the whims and fancies of policymakers or funders. We pointed to India’s experiences, for example, the Malegam Committee established by the Reserve Bank of India after the microfinance crisis in Andhra Pradesh in 2010, to study the causes and culprits of the crisis and to recommend regulations. When the policymakers in the Working Committee seemed oblivious, we brought in comparable examples from other countries to inform policy making. However, Bill 2025 shows that our efforts have been a wasteful exercise. Community consultations initiated by the Ministry of Finance have been nothing more than a symbolic gesture. A box to tick.

Finally, the Asian Development Bank’s loan condition prevailed over our efforts to establish a regulatory framework that addresses the concerns of microfinance victims and community credit providers.

The Microfinance and Credit Regulatory Authority Bill 2025 sets a dangerous precedent of how misinformation, stereotypes, personal biases and funding interests can sidetrack research, data and people’s needs in policymaking. The microfinance crisis is a manifestation of a chronic problem afflicting people’s economies at the level of livelihoods. A regulatory response to the crisis could have been the beginning of correcting deep-seated structural issues, notably by repurposing the banking and financial system with developmental goals rather than speculation and profit. Policymakers, however, consciously disregarded this opportunity. The task of rectifying this failure and achieving justice now falls to those most affected, the women victimised by microfinance, community credit providers, and their allies in solidarity.

China yesterday delivered a major humanitarian relief consignment to Sri Lanka to support recovery efforts following the devastation caused by Cyclone Ditwah, which swept across the island recently.

A total of 85 tonnes of flood relief material, including life jackets, tents, blankets and sheets, arrived in Colombo this morning and was officially handed over by the Ambassador of China to Sri Lanka Qi Zhenhong.

The Chinese Embassy has indicated that the supplies are estimated to be worth around Rs. 400 Million, the President’s Media Divisions said.

A coalition of political parties, civil society groups, environmental organisations and public movements is preparing to initiate legal action against the Government over allegations that authorities failed to provide adequate advance warnings on Cyclone Ditwah and disregarded established safety protocols.

Representatives met in Colombo on 5 December to outline the legal strategy.

Free Lawyers Organisation Convener Attorney-at-Law Dinesh Vidana Pathirana said the applications will be based on the Public Trust Doctrine, arguing that the Government failed to issue essential warnings from 12 November until the cyclone made landfall. He said data gathering is underway, with senior legal experts advising the process. Political leaders, community members and affected families are expected to provide testimony.

Vidana Pathirana also noted that consultations are in progress with lawyers linked to the United Nations, adding that if domestic avenues prove inadequate, they may seek intervention from the UN Human Rights Commission.

Environmental Justice Centre Chairman Attorney-at-Law Ravindra Dabare said a writ petition is being prepared over the failure to evacuate residents living in areas known to be at high risk of landslides and rock falls.

He said legal provisions already empower authorities to remove people from danger zones, but agencies did not act when they should have.

Api Sri Lanka Convener Priyantha Herath said a fundamental rights petition will also be filed against the Department of Meteorology, alleging that the agency did not communicate risk alerts effectively.

He said the absence of timely information contributed to severe loss of life, property and livestock, and insisted that the Government and its institutions must face accountability for the failures.

The organisations argue that multiple state institutions did not issue appropriate alerts despite early indications of the cyclone’s trajectory and intensity. They contend that this lapse contributed to the scale of fatalities, property destruction and displacement recorded across several districts.

According to organisers, the planned litigation will take the form of writ applications and will rely on earlier Supreme Court rulings that established state accountability for preventable harm.

These include the judgment assigning responsibility to former President Maithripala Sirisena and senior officials for failures preceding the 2019 Easter Sunday attacks, and the ruling that found former President Gotabaya Rajapaksa and others liable for decisions that aggravated the recent economic crisis.

The groups say these precedents reinforce the constitutional obligation of the State to safeguard the public.

Sri Lanka has secured a $ 30 million loan from the International Development Association (IDA) of the World Bank Group to support the implementation of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project, a key initiative aimed at accelerating the country’s transition to renewable energy.

The financing agreement was signed on 3 December 2025 by Treasury Secretary Dr. Harshana Suriyapperuma and World Bank Division Director for Maldives, Nepal and Sri Lanka, David N. Sislen, representing the Government of Sri Lanka and the IDA, respectively.

A statement issued by the Finance Ministry External Resources Department noted that Sri Lanka’s current grid capacity has become a major constraint in integrating additional renewable energy, posing significant technical challenges.

The new project is designed to expand and modernise grid infrastructure to accommodate higher volumes of clean power in line with the national policy target of generating 70% of electricity from renewable sources by 2030.

The initiative will also be supported by a proposed World Bank payment guarantee facility intended to scale up private sector investment in renewable energy projects.

Through a range of financial instruments, the broader program aims to unlock private capital, strengthen institutional capacity, and ensure a stable and affordable power supply.

The total project cost is estimated at $ 60 million.

The World Bank will provide $ 30 million under the first phase, while the remaining $ 30 million is expected under a second phase of financing.

The loan facility is expected to be on-lent to the Ceylon Electricity Board (CEB), which will implement the project in collaboration with the Energy Ministry and other relevant agencies.

Hatton National Bank PLC yesterday announced that its Sustainable Bond issue has been oversubscribed, after receiving applications exceeding Rs. 10 billion, prompting the bank to close the offer early at 4:30 p.m.

The bank opened subscriptions for up to Rs. 5 billion in listed, rated, unsecured, redeemable senior Sustainable Bonds, carrying five-year (2025/2030) and seven-year (2025/2032) tenors at a par value of Rs. 100 each. The structure allowed HNB to activate an additional Rs. 5 billion tranche in the event of an oversubscription, enabling a maximum issuance of Rs. 10 billion.

With demand surpassing this ceiling, the bank confirmed that the issue has been fully subscribed. HNB said the basis of allotment will be notified in due course.

The United Nations has allocated $ 4.5 million (Rs. 1.38 billion) from the Central Emergency Response Fund (CERF) to strengthen Sri Lanka’s response to Cyclone Ditwah, which made landfall on 28 November.

The funds will enable the UN to rapidly scale up emergency food assistance, shelter support, and water, sanitation and hygiene services for the communities most severely affected by the floods and landslides that have impacted the country.

Communities across Sri Lanka are continuing to grapple with the widespread impacts of the cyclone, with thousands of families still displaced after extensive damage to housing and infrastructure. Even as response efforts are underway, latest assessments indicate that the effects of the cyclone are broader and more severe than initially understood, leaving many communities in urgent need of sustained support to fully recover from Cyclone Ditwah.

‘This funding comes at a critical moment for Sri Lanka,’ said United Nations Resident Coordinator in Sri Lanka Marc-André Franche. ‘Cyclone Ditwah has upended lives across the country, and many families are still struggling to meet their basic daily needs. The UN was quick to provide support with urgent relief items and equipment. We are working closely with the Government, civil society partners and the humanitarian community in Sri Lanka to ensure a coordinated response guided by evidence and priority needs. This emergency funding will help us reach those most severely affected with the support they urgently need.’

The UN’s global emergency fund CERF enables rapid funding to humanitarian responders to help support life-saving, humanitarian activities in the initial stages of a sudden-onset crisis.

As the full scale of the devastation becomes clearer, the UN will expand its life-saving assistance to the hardest-hit communities through a broader Humanitarian Priorities Plan, expected to be announced this week.