Business

Rebuilding housing post-Ditwah: Lessons from Sri Lanka’s Tsunami experience

Published

2 months ago

2025/12/30

Dr Nisha Arunatilake

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)

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Business

Vehicle permit revival threatens governance credibility – Advocata

Published

23 hours ago

2026/02/14

Thilina Walpola

Advocata warns revival of vehicle permits threatens governance credibility, public trust and economic reform and strongly cautions against government consideration to allow vehicle imports for high-ranking government officials who received permits upon retirement.

According to statements in Parliament, 1,900 permits have already been issued under this concessional scheme for senior officials, with 563 permits issued in 2025 alone. Meanwhile, ordinary citizens endure an extended vehicle import ban and some of the highest effective taxes on personal transport vehicles in the world.

During the presentation of the 2026 Budget Proposal, President Anura Kumara Dissanayake declared: “There will be no permits. The permit culture must end in Sri Lanka!”

Advocata welcomed this commitment, recognising permit culture as a relic of a feudal system, not a feature of a modern economy. It is a system that has, for decades, rewarded privilege over performance, entrenched inequality, and undermined the credibility of the state. The President’s affirmation offered renewed hope that Sri Lanka was finally moving toward transparent and equitable reform.

To now entertain exemptions for a select group sends a dangerous signal about reform credibility. Even policies publicly acknowledged as corrosive have the potential to quietly return.

The Normalisation of State Sanctioned Privilege

Vehicle permits are not compensation. They are discretionary privileges, operating as hidden transfers of public wealth to a privileged few, while the broader population absorbs higher taxes and reduced services. Worse still, they place retirement benefits at the mercy of political discretion, turning professional civil servants into political dependents rather than accountable public servants.

Therefore, it is precisely the high-ranking officials that must lead by example.

In December 2010, Transparency International Sri Lanka revealed that the majority of 65 newly elected Parliamentarians, including 2 Cabinet Ministers, sold their duty free vehicle permits for as much as Rs. 17 million each, when adjusted for inflation using Department of Census and Statistics figures, that windfall is equivalent to which adjusted for inflation sits at approximately Rs. 48 million today.

In December 2012, in an event the Sunday Times classified as a “Christmas Bonanza for MPs,” the Government granted permission for MPs to openly sell their duty free permits. At the time, they sold for Rs. 20 million each, which adjusted for inflation sits at approximately Rs. 50 million today.

In October 2016, Nagananda Kodituwakku, an attorney-at-law and rights activist, wrote to the Commissioner General of Motor Traffic, naming 75 MPs who imported luxury vehicles, including BMWs, Mercedes-Benz, Land Cruisers and even a Hummer. The total tax waived per MP ranged from Rs.30 million to Rs. 44.7 million. In today’s terms, this range approximately translates to between a staggering Rs. 66 million and Rs. 98.5 million.

History demonstrates the scale of abuse enabled by this system.

Toward integrity in Governance

As Advocata has previously highlighted, Sri Lanka’s cascading tax structure drives effective import duties on most passenger vehicles into the 125–250 percent range. Every duty-free permit therefore represents a direct fiscal loss; revenue that must be recovered through higher taxes elsewhere or reduced public services for everyone else. Since 2020 alone, more than 25,000 duty-free permits have been issued to government employees, including during the height of the economic crisis.

Making exceptions now would set a dangerous precedent. It signals to every remaining permit holder that persistence will be rewarded, inevitably triggering lobbying pressure and further demands for carveouts. This is how temporary “concessions” become permanent entitlements. Once reopened, the system cannot be credibly contained.

From an economic and governance perspective, reintroducing selective exemptions would undermine public confidence in fiscal consolidation, weaken the credibility of reform commitments, and damage investor perceptions of Sri Lankan regulatory stability and policy consistency.

The appropriate solution lies in transparent, on-budget salary structures, subject to Parliamentary oversight. Crucially, they must compensate public servants fairly without undermining fiscal discipline or institutional integrity, avoiding the distortions created by discretionary privilege schemes.

Advocata calls on the government to take the following actions:

Abandon plans to allow vehicle imports under existing duty free permits.

Commit to permanently ending vehicle permit schemes, replacing them with clear and transparent salary frameworks subject to Parliamentary oversight.

Legislate a prohibition on duty-free vehicle permits for public sector officials, safeguarding against future reversals and ensuring consistent policy application.

Sri Lanka cannot rebuild trust while preserving elite carve-outs. Reform commitments retain credibility only when they are applied consistently — without selective exemptions. Advocata spokespersons are available for live and pre-recorded broadcast interviews via 0755477522

Business

Sri Lanka gears up for global cycling adventure

Published

23 hours ago

2026/02/14

Thilina Walpola

The dignitaries gracing the launch event.

The vibrant island of Sri Lanka is set to welcome cycling enthusiasts from around the globe with the much-anticipated Trek4 Sri Lanka Cycle Ride, an event that promises adventure, breathtaking views, and a celebration of local culture.

Trek4 Ceylon officially announced its annual tour of Sri Lanka at a press conference held at Cinnamon Grand Colombo, unveiling the 2026 five day charity ride dedicated to restoring St. Luke’s Methodist Mission Hospital in Puttur. The trek began from Cinnamon Grand Colombo February 10th and will end in Jaffna on 14th February covering over 560 kilometers across Sri Lanka. The ride will cover some of the most picturesque routes across the island, from the stunning beaches up to Jaffna. Over 50 riders from 11 countries take part in the trek including United Kingdom, Australia and United States of America.

Andrew Patrick, British High Commissioner to Sri Lanka expressed strong support for the Trek4 initiative. He stated, “This cycle trek not only promotes cycling and sustainable tourism but also emphasizes our mission to help local communities thrive. By participating in this event, cyclists will contribute directly to the local economy and foster community development. It’s a fantastic opportunity to explore the beauty of Sri Lanka while making a positive impact.”

Speaking at the gathering Australian High Commissioner Matthew Duckworth said “Cycling in Australia is a deeply ingrained cultural phenomenon, with Australians being world-renowned for their participation in both competitive road cycling and extensive off-road trekking. It was an honor to attend the send-off gathering for the Trek4 cycle ride in Sri Lanka at Westminster House. This initiative not only promotes fitness and camaraderie but also strengthens the bonds between our nations. I am excited to see the positive impact it will have on both participants and the communities they engage with along the way. “

By Claude Gunasekera

Business

Anticipated uptick in banking and financial sector shares

Published

23 hours ago

2026/02/14

Thilina Walpola

Both CSE indices showed high performance yesterday because most stock investors anticipate an upwards trend in the banking and financial sector in the coming months, market analysts said.Amid those developments both indices moved upwards with a high turnover level. The All Share Price Index went up by 37.33 points, while the S and P SL20 rose by 24.17 points.

Turnover stood at Rs 8.5 billion with 17 crossings. Top seven crossings were as follows: Tokyo Cement 11.5 million shares crossed to the tune of Rs 1.19 billion; its shares traded at Rs 104, TJ Lanka 18 million shares crossed for Rs 671 million; its shares traded at Rs 37.50, Sampath Bank 2.35 million shares crossed for Rs 366 million; its shares sold at Rs 156, Tokyo Cement 1.95 million shares crossed for Rs 168 million; its shares sold at Rs 86.20, Colombo Dockyards 1 million shares crossed for Rs 156 million; its shares traded at Rs 156 and HNB 313,000 shares crossed for Rs 136.8 million; its shares sold at Rs 437 and Digital Mobility Solutions 500,000 shares crossed for Rs 79.5 million; its shares traded at Rs 159.

In the retail market, top seven companies that mainly contributed to the turnover were; Tokyo Cement Rs 866 million (8.3 million shares traded), Tokyo Cement (Non-Voting) Rs 746 million (8.6 million shares traded), Colombo Dockyard Rs 410 million (2.6 million shares traded), TJ Lanka Rs Rs 331 million (8.9 million shares traded), Softlogic Capital Rs 305 million (40 million shares traded), Janashakthi Insurance Rs 227 million (1.5 million shares traded) and HNB Rs 152 million (350,000 shares traded). During the day 57.32 million shares volumes changed hands in 36500 transactions.

It is said that construction related companies, especially Tokyo Cement, performed well while the banking and financial sector performed well too, especially Sampath Bank and HNB.

Yesterday the rupee was quoted at Rs 309.20/23 to the US dollar in the spot market, from Rs 309.30/37 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne