Business
Rebuilding housing post-Ditwah: Lessons from Sri Lanka’s Tsunami experience
The Ditwah Cyclone ranks second only to the December 2004 Tsunami in terms of damage to housing in Sri Lanka’s recent history. According to the government’s Disaster Management Centre, as of 9th December 2025, 86,488 houses were partially or fully damaged due to Ditwah. This is only slightly fewer than the nearly 100,000 houses affected by the 2004 Tsunami. The government has announced a redevelopment programme to assist affected families in rebuilding their homes in safer locations. It has many similarities to the 2005 post-Tsunami housing programme and holds important insights as outlined in the Post-Disaster Housing: Lessons Learnt from the 2004 Tsunami of Sri Lanka, to inform the Ditwah Cyclone housing initiative.
The Tsunami housing study was based on two surveys by the Institute of Policy Studies of Sri Lanka (IPS) covering 600 affected families across six districts in the Southern and Eastern Provinces to evaluate the efficiency and effectiveness of the post-Tsunami housing programme. The first was done in April 2005 and the same households were re-surveyed after 18 months to assess progress.
The Post-Tsunami Housing Programme
A key feature of the 2005 post-Tsunami housing programme was the no-build buffer zone in the beachfront of affected areas, as it was deemed unsafe to build within this zone. Given this demarcation of the no-build zone, the post-Tsunami housing programme took a two-pronged approach. Families living outside the zone received cash grants to rebuild their homes (owner-driven rebuilding), while those residing inside the zone were provided with houses in alternative areas closer to their original residences (donor-driven relocation).
Owner-driven rebuilding: All affected individuals living outside the no-build buffer zone could receive a government grant to rebuild their homes. The grant, given in stages based on the extent of damage, required households to prove ownership. They could choose to rebuild their old home or construct a new one on land they owned. Families that effectively used their grant could also qualify for a LKR 500,000 concessionary loan to meet additional housing needs.
The selection of beneficiaries and the assessment of grant amounts followed a three-stage process. The Divisional Secretariat (DS) established a Damage Assessment Team (DAT) in each Grama Niladhari Division (GND) to support this process. The DAT included representatives from the relevant GND, donor agencies active in the area, members of the village rehabilitation committee (VRC), and technical officers from the DS. VRCs were created explicitly in each GND to incorporate community input during reconstruction. In the first stage, DAT compiled a list of households eligible for housing assistance. During the second stage, the GND and DS published preliminary lists of eligible families. Any disputes about eligibility were recorded and resolved at VRC meetings. Conflicts that could not be settled locally were escalated to a designated grievance committee at a higher level. After finalising the list, beneficiaries received certificates to confirm their eligibility.
Donor-driven relocation: All those living within the no-build buffer zone were promised a house built with the assistance of donors on land designated by the government. The households were not required to prove land ownership. The new homes needed to have at least 500 sq ft of space and access to electricity, running water, sanitation, and drainage facilities according to guidelines set by the Urban Development Authority (UDA).
The main challenge of this scheme was to find suitable land for relocation. The District Secretary and the UDA were responsible for identifying land for the move.
Post-Ditwah Housing Programme
The post-Ditwah housing programme too employs a two-pronged approach. Families living in unsafe locations are to be provided with either land or LKR 5 million to purchase new land, along with another LKR 5 million to construct a new house. In contrast, houses damaged by Ditwah are to be allocated up to LKR 2.5 million for rebuilding, depending on the extent of the damage.
Lessons for Ditwah from the Tsunami Housing Programme
Identifying beneficiaries
One main issue in the post-Tsunami housing programme was defining a ‘household’. A ‘household’ was understood as all individuals living together before the Tsunami. Clarifying this early on was important because, in some cases, extended families consisting of several nuclear families shared the same dwelling. The three-stage beneficiary identification process described earlier helped select beneficiaries transparently, with the involvement of a representative group of stakeholders.
Initially, during the post-Tsunami reconstruction phase, donors lacked an effective system for selecting beneficiaries. As many distributed donations by directly visiting affected places, those near main roads received most of the donations, while less visible groups received less. The eligibility lists were a valuable means of providing information on the needs of the affected.
The post-Ditwah housing programme could also benefit from clarity regarding who is eligible for different types of housing assistance.
Identifying house ownership
The lack of documents to prove ownership and identity was one of the main factors delaying the progress of the housing programme. According to the IPS Survey, 23% of those surveyed reported losing their deeds, and 41% reported losing their national identity cards during the Tsunami. Furthermore, the requirement to show land ownership made several households ineligible for a new house because some of the damaged homes were built on land that had been encroached upon.
The post-Ditwah reconstruction can avoid delays by establishing mechanisms to replace lost documents and, where that is not possible, other means of proving ownership, which is essential for accelerating beneficiary identification.
Process oversight and governance
The government formed the Task Force for Rebuilding the Nation (TAFREN) to ensure proper procedures in beneficiary identification and fund distribution in accordance with accounting standards. According to the IPS’ 2008 follow-up survey, the no-build buffer zone, difficulties in finding suitable land for family relocation, and issues with donor coordination were the primary reasons for delays in providing houses for the affected. The buffer zone was later relaxed to speed up reconstruction. In March 2006, the Reconstruction and Development Agency (RADA) was established to improve coordination between DSs and donors.
Effective donor coordination was essential to ensure that all beneficiaries received support without overlap, thereby optimising donation utilisation. During the post-Tsunami reconstruction phase, some donors’ reluctance to register with the DS led to ineligible people receiving houses, while eligible people did not. To resolve this, all donors – whether national, international, multinational, or private – supporting the reconstruction phase had to register with the DS. This enabled the government to match donors with affected individuals using eligibility lists. Even donors outside the official reconstruction programme were encouraged to register with the DS to avoid duplicate assistance.
Taking measures to register potential donors and map donor assistance to eligible lists helps to highlight gaps in the reconstruction programme. Such information helps attract new donors and ensures that all eligible persons receive assistance.
It is vital for the Ditwah-housing programme also to ensure that an identified agency is given authority to ensure proper governance and coordination.
Skills, materials for rebuilding
The lack of skills, materials, and labour for building their own houses was a primary obstacle to the progress of the owner-driven housing programme. The IPS 2005 survey revealed that 62% of the affected households were unable to manage the rebuilding of their own houses. The reconstruction boom following the Tsunami increased the input prices, making the initial allocation of funds insufficient. Further, identifying land for relocation was a central issue during the post-Tsunami relocation period.
Ensuring the availability of necessary inputs and skills is essential for speeding up reconstruction in the post-Ditwah reconstruction phase. Early identification of suitable land for relocating families and ensuring that allocated plots are ideal for beneficiaries’ lifestyles are essential to expedite reconstruction and ensure beneficiary welfare.
The measures announced by the government to provide grants to Ditwah Cyclone affected households to move to safe locations and rebuild their houses are commendable. Expediting the reconstruction process by minimising bottlenecks and clarifying beneficiary eligibility is essential to speed up reconstruction, as described above, thereby improving the welfare of those affected.
By Dr Nisha Arunatilake, Director of Research, Institute of Policy Studies of Sri Lanka (IPS)
Business
Low-quality coal shipment affects Lakvijaya coal power plant operations
Operations at Sri Lanka’s main coal-fired power facility, the Lakvijaya coal power plant, suffered a significant disruption soon after a new shipment of coal was introduced, raising concerns over generation stability and environmental emissions.
Energy analyst Dr. Vidura Ralapanawa said in a social media post that the plant began using coal from “Ship 11” on Wednesday, following confirmation from officials of the Ceylon Electricity Board (CEB).
However, almost immediately after the new batch of coal was fed into the system, the plant’s generation capacity began to decline due to the poor quality of the fuel.
According to Dr. Ralapanawa, the plant’s output dropped by about 82 megawatts overall. Unit 1 recorded a drop of 45 MW, Unit 2 fell by 15 MW, and Unit 3 declined by 22 MW shortly after the coal was introduced.
The situation worsened later in the night when two coal mills in Unit 3 reportedly became clogged around 11 p.m., causing a rapid fall in generation capacity. Unit 3, which normally operates at a higher output level, was said to be running at around 170 MW following the malfunction.
Coal mills are a crucial component in coal-fired power generation. They grind raw coal into a fine powder before it is fed into the boiler for combustion. Each generating unit at the Norochcholai facility is equipped with five coal mills, and any obstruction in these systems can severely affect plant operations.
When mills become clogged, plant operators often have to rely on diesel-fired burner guns to stabilise the flame inside the boiler. While this helps maintain combustion, it significantly increases operating costs because of the high price of diesel.
The heavy use of diesel has another consequence. According to Dr. Ralapanawa’s post, when diesel firing increases, the plant’s Electro-Static Precipitators (ESPs) must be shut down. ESPs are designed to capture and remove particulate matter such as fly ash before emissions are released through the chimney.
With the ESPs switched off, large amounts of fly ash may be released into the atmosphere, potentially affecting surrounding communities.
Dr. Ralapanawa further noted that the coal shipment appears to have low calorific value, low volatile matter, and high ash content, all of which reduce combustion efficiency. In addition, the coal reportedly has a low grindability index, making it harder to pulverise and increasing the likelihood of mill blockages.
He added that while the immediate clogging of the mills may be cleared within a day, the underlying quality issues with the coal could make the problem persistent.
The development comes amid earlier assurances from officials of the Ceylon Electricity Board that the Norochcholai plant could be operated effectively even with lower-quality coal supplies.
The Norochcholai facility, with an installed capacity of 900 MW, is the largest power station in Sri Lanka and a critical component of the national grid. Any disruption to its operations can have wider implications for the country’s electricity supply, potentially forcing the system to rely on more expensive oil-based power generation.
Engineers are currently working to address the clogged mills and stabilise generation, but energy analysts warn that unless the fuel quality improves, similar operational issues could recur.
By Ifham Nizam
Business
CSE regains some positive terrain but challenges remain
CSE trading yesterday was positive overall on account of local economic growth prospects but concerns deriving from West Asian tensions lingered.
The market is still recovering from previous days’ uncertainties, market analysts said.
The All Share Price Index went up by 256 points, while the S and P SL20 rose by 63.8 points. Turnover stood at Rs 5.68 billion with nine crossings.
Seven crossings were reported in HNB Finance where 130 million shares crossed to the tune of Rs 1.1 billion; its shares traded at Rs 8.50, LMF four million shares crossed for Rs 348 million; its shares traded at Rs 87, Commercial Bank 661,000 shares crossed for Rs 142 million; its shares traded at Rs 215, Seylan Bank (Non-Voting) 750,000 shares crossed for Rs 49 million; its shares sold at Rs 75.50, ACL Cables 500,000 shares crossed for Rs 49 million; its shares traded at Rs 98, HNB 100,000 shares crossed for Rs 43.2 million; its shares sold at Rs 432 and Access Engineering 500,000 shares crossed for Rs 38.5 million and its shares fetched at Rs 77.
In the retail market companies that mainly contributed to the turnover were; HNB Finance Rs 331 million (34.8 million shares traded), Lanka Credit and Business Finance Rs 184 million (21.6 million shares traded), LOLC Holdings Rs 180 million (320,000 shares traded), Commercial Bank Rs 167 million (774,000 shares traded), Softlogic Capital Rs 138 million (twelve million shares traded), Sampath Bank Rs 124 million (789,000 shares traded) and ACL Cables Rs 123 million (1.26 million shares traded). During the day 330 million share volumes changed hands in 36639 transactions.
It is said that the banking and financial sectors performed well. HNB Finance was active in the financial sector, while Commercial Bank and HNB were active in the banking counters.
Further, National Development Bank has received Colombo Stock Exchange approval in principle to list Rs 16 billion of 11.50, 11.04 and 11.85 percent debentures, it said in a CSE filing.
NDB will issue 120 million Tier 2, listed, rated, unsecured, subordinated, redeemable Basel III compliant GSS+ bonds with a non-viability conversion, at Rs 100 each.
Yesterday the rupee was quoted at Rs 310.70/85 to the US dollar in the spot market, weaker from Rs 310.30/60 the previous day, dealers said, while bond yields were broadly steady.
By Hiran H Senewiratne
Business
Indian Ocean under fire: Parliament explodes over the sinking of ‘IRIS Dena’
A new crisis looms with a second Iranian vessel at the doorstep
Sri Lanka’s parliament became a secondary battleground yesterday as the sinking of the Iranian frigate IRIS Dena ignited a fierce debate over national sovereignty, regional maritime priciples, and the government’s perceived ‘strategic paralysis.’
While the Navy’s rescue of 32 sailors was initially painted in shades of heroism, Opposition MPs have now unfurled a narrative of missed warnings and geopolitical betrayal.
In a scathing address, Opposition firebrand Chamara Sampath Dissanayake challenged the circumstances of the vessel’s arrival in Sri Lankan waters. The IRIS Dena had been a guest of the Indian Navy during the MILAN-2026 exercises just days prior. Dissanayake alleged that at the conclusion of the fleet review, the vessel was effectively ‘put out’ of India, leaving the crew with no choice but to steer toward Sri Lanka.
“This was a deliberate attempt by the host to put a guest in harm’s way,” Dissanayake charged, stopping just short of naming India directly while making the implication undeniable. He argued that Sri Lanka had been ‘set up’ to deal with the fallout of a targeted strike that occurred only 11 nautical miles from Galle.
The debate took a darker turn when SJB MP Mujibur Rahman dropped a bombshell regarding the timing of the attack. Rahman alleged that the IRIS Dena had signalled for permission to enter Sri Lankan waters 11 hours before it was struck by U.S. torpedoes.
“Why did the authorities keep silent?” Rahman demanded. He blasted the government for failing to act on humanitarian grounds, suggesting that Colombo’s hesitation provided the necessary window for what U.S. Defense Secretary Pete Hegseth termed a ‘Quiet Death.’ Rahman’s critique painted a picture of a government ensnared in superpower machinations, unable to uphold the principles of the Indian Ocean as a ‘Zone of Peace.’
Responding to the barrage of questions, Cabinet Spokesman Dr. Nalinda Jayatissa confirmed a chilling new development: a second Iranian vessel is currently positioned in the Exclusive Economic Zone (EEZ) off Colombo.
While Jayatissa assured the House that the President and the Security Council are ‘fully aware’ and making ‘necessary interventions’ to protect those on board, the lack of specific details fueled further anxiety. Political analysts suggest that the government’s failure to announce a clear, proactive neutral policy has left it in a state of ‘vacillation,’ unable to decide whether to grant refuge to the second ship or risk another tragedy on its doorstep.
The parliamentary clash was punctuated by the visit of former president Ranil Wickremesinghe to the Iranian Embassy yesterday to offer condolences for the passing of Supreme Leader Ayatollah Ali Khamenei. Wickremesinghe had warned on March 2 – just 48 hours before the sinking – that the current ‘leadership eviction’ methodology in the Middle East could destabilise the Indian Ocean.
As the death toll from the IRIS Dena stands at 87 with 60 still missing, the ‘can of worms’ opened in parliament reveals a nation at a crossroads. The government’s silence during the Dena’s final hours and its current ‘intervention’ with the second vessel will likely define Sri Lanka’s standing in a rapidly fragmenting global order.
As the House adjourned, one question remained hanging in the air: In the face of a superpower conflict, does Sri Lanka have the ‘backbone’ to be truly neutral, or is it merely a spectator to its own maritime destiny?
by Sanath Nanayakkare
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