FINANCIAL CHRONICLE – Sri Lanka’s plan to organize an international donor conference aimed at raising funds for the reconstruction of the Ditwah area, severely affected by devastation, has been postponed. The date for the event is yet to be determined, according to government sources.
The Sri Lankan government intends to allocate an additional 500 billion rupees for cyclone relief and recovery efforts in 2026. Of this amount, 250 billion rupees will be directed towards infrastructure development, 100 billion rupees for rebuilding homes, and 200 billion rupees for business recovery in agriculture and other sectors.
In mid-December, Deputy Finance Minister Anil Jayantha Fernando announced that the government planned to hold a donor conference in January, following a meeting of the Rebuilding Sri Lanka Fund. However, a government source informed FINANCIAL CHRONICLE that the date has not been finalized, stating, “It’s not finalized yet. It’s still under processing, so a date has not been fixed yet.” Another source indicated that the government is awaiting an assessment from the International Monetary Fund (IMF), expected by the end of the month.
An IMF delegation is currently in Colombo to complete the fifth review of the island nation’s progress under the global lender’s 3 billion US dollar External Fund Facility (EFF) before releasing the sixth tranche.
The United Nations Development Program launched a global appeal in December, highlighting that Sri Lanka’s Treasury is unable to cover the disaster expenses independently. Rapid assessments by the World Bank have estimated direct physical damages at approximately US$4.1 billion, roughly 4 percent of the 2024 GDP, with significant impacts on roads, railways, homes, agriculture, and tourism hotspots in the central highlands.
In response, the government swiftly established the “Rebuilding Sri Lanka Fund,” which has amassed over Rs. 8.5 billion (US$28 million) in domestic and expatriate donations by January 23, including foreign contributions exceeding US$9.49 million from 47 countries.
The IMF has approved a US$200 million Rapid Finance Instrument (RFI) following the disaster. (Colombo/January 26/2026)
