News & market updates

Sri Lanka has requested about US$200m (SDR 150.5m) from the IMF under the Rapid Financing Instrument to support recovery and rebuilding after Cyclone Ditwah; the request is under consideration by the IMF Executive Board. The country faces a $216m IMF repayment in 2026 and has seen rapid rupee depreciation and weaker reserve accumulation.

Transport and Highways Ministry reported 247 km of A- and B-grade roads damaged and 40 bridges destroyed by adverse weather; 81 road sections remain closed while 175 of 256 damaged sections have been reopened to traffic.

IMF has assured continued support for Sri Lanka after the cyclone and is closely engaging with authorities as a rapid post-disaster damage assessment proceeds; the Staff‑Level Agreement on the Fifth Review under the EFF remains on track ahead of a December 15 Board meeting. IMF staff are exploring additional support options pending assessment results.

The IMF is examining options to support Sri Lanka’s recovery after Cyclone Ditwah, pending a rapid post-disaster damage assessment that follows floods and landslides that left more than 800 dead or missing.

Sri Lanka's ASPI fell 5.4% over the week after Cyclone Ditwah, closing Friday at 21,497.08 as selling pressure hit the market. Banks and John Keells were top negative contributors, while some construction stocks (e.g., Swisstek) saw buying ahead of expected reconstruction projects.

Treasury Secretary Dr. Harshana Suriyapperuma said almost Rs.697.4 million has been collected for the government’s 'Rebuilding Sri Lanka' fund — Rs.635m via the Bank of Ceylon account and Rs.61m via Central Bank accounts — from over 30,000 donors across 33 countries.

Over 19,000 Sri Lankans working abroad have contributed to the 'Rebuilding Sri Lanka' Fund to support national recovery after Cyclone Ditwah. The Finance Ministry said it has implemented two mechanisms to facilitate overseas donations, including via Sri Lankan missions if banks are inaccessible.

CHEC Port City Colombo deployed 12 heavy-duty machines and a technical team within 24 hours to clear and repair the A5 Kandy–Nuwara Eliya corridor after Cyclone Ditwa; the company donated Rs.10 million to the Rebuilding Sri Lanka Fund plus an additional Rs.3 million from staff/regional office and provided technical expertise for bridge and road repairs.

Trade and Investment Queensland and Study Queensland held a two-day engagement in Sri Lanka with five Queensland universities (Griffith, James Cook, Bond, Central Queensland, Southern Cross) to promote scholarships, study pathways and student support. Officials highlighted opportunities in health, technology, agriculture, hospitality and construction and projected approximately 100,000 jobs from proposed projects ahead of the 2032 Olympics.

IMF will provide swift access to about USD 350 million (the sixth EFF tranche) within two weeks to support Sri Lanka's cyclone relief. Development partners also pledged immediate humanitarian aid and to repurpose financing for medium-term infrastructure and recovery efforts.

ADB will provide immediate grant support of up to $3 million to Sri Lanka (and $2 million each to Thailand and Viet Nam) from the Asia Pacific Disaster Response Fund to support emergency flood relief, humanitarian efforts and rebuilding of affected communities and infrastructure.

ADB will provide immediate grant support of up to $3 million to Sri Lanka (and $2 million each to Thailand and Viet Nam) from the Asia Pacific Disaster Response Fund to support emergency humanitarian relief and rebuilding after severe floods.

IMF informed Sri Lanka it can access the next $350m EFF tranche within two weeks. Development partners pledged immediate humanitarian aid and to repurpose/provide concessional financing for medium- to long-term infrastructure, agriculture and tourism recovery after Cyclone Ditwah.

Opposition leader Sajith Premadasa demanded the Government withdraw the 2026 Budget, seek a new IMF deal and convene an international donor conference to address Cyclone Ditwah damage; SJB MP Harsha de Silva countered that about Rs.50 billion is immediately available and the IMF program allows fiscal flexibility.

The UN is leading a Joint Rapid Needs Assessment with Sri Lanka's Disaster Management Centre after Cyclone Ditwah to map flood impacts and coordinate data collection; efforts prioritize food security and agriculture, livelihoods, health and nutrition, water and sanitation, shelter and early recovery.

Cyclone Ditwah left 829 dead or missing in Sri Lanka (479 confirmed dead, 350 missing) and displaced about 188,974 people. The storm damaged 44,556 houses (1,289 destroyed), inundated crops and tore up roads, rail tracks and the fibre-optic backbone, disrupting infrastructure and services.

Transparency International Sri Lanka urged strong accountability and transparency in the use of public funds for Cyclone Ditwah relief after the Government allocated a Rs. 30 billion reserve for emergency aid. TISL welcomed a Rs. 50 million per-district spending increase and called for CSO representation, independent audits and full disclosure for the new reconstruction fund.

Apple CEO Tim Cook said Apple will donate to relief and rebuilding efforts for communities hit by severe storms in Thailand, Indonesia, Malaysia and Sri Lanka.

Colombo bourse fell 1.87% to 21,826.59, wiping Rs.143 billion off market value with turnover of nearly Rs.3.78bn and foreign net selling of Rs.295.5m. Brokers said price losses in counters including Ceylinco, Melstacorp and Commercial Bank drove the slide amid adverse weather forecasts.

Binance Charity pledged Rs. 61.6 million to the Sri Lanka Red Cross to support immediate relief and early recovery for communities affected by Cyclone Ditwah. Funds will be used for food, clean water, hygiene and medical supplies, temporary shelter materials and cash grants for displaced families.

ADB approved a $3 million disaster relief grant for Sri Lanka from the Asia Pacific Disaster Response Fund after Cyclone Ditwah; Thailand and Vietnam received $2 million each.

Colombo Stock Exchange ASPI fell 1.87% to 21,826.59 and the S&P SL20 dropped 1.75% to 6,030.66. Top decliners included Ceylinco Holdings, Melstacorp, Commercial Bank, Senkadagala Finance and Bukit Darah; construction names Access Engineering and Sierra Cables also slid, and Hemas appointed Ajith Fernando as chairman effective Jan 1.

Treasury Secretary Harshana Suriyapperuma said the government is coordinating with banks and insurers and has activated nearly Rs.30 billion in emergency budget lines, authorising Rs.7.5 billion for housing to support households, SMEs and businesses hit by Cyclone Ditwah. Authorities have begun a World Bank-backed rapid damage assessment and approved a Rebuilding Sri Lanka Fund to guide reconstruction.

DMC reports 1,558,919 people from 437,507 families affected across 25 districts and 465 confirmed deaths; 366 missing. Fully damaged houses total 783, 31,417 partially damaged, and 1,433 safety centres are sheltering 232,752 people.

World Bank Country Manager Gevorg Sargsyan said Sri Lanka can achieve the government's 7% GDP growth target but only with decisive second-generation reforms to dismantle trade barriers, boost productivity and mobilise private capital. He called for tariff cuts, customs modernisation, logistics fixes, commercial SOE reforms and deeper financial intermediation to convert investor interest in energy, logistics and food into commitments.

First Capital Holdings CEO Dilshan Wirasekara estimated Cyclone Ditwah’s initial economic cost at $200m–$2.9bn (likely 1–3% of GDP) and urged issuance of a government-backed national Infrastructure Bond and other capital-market solutions to finance reconstruction.

Myland Developments PLC appointed Dr. Damindra Ranjan Dissabandara to its Board as an Executive Director. Dr. Dissabandara, who is CEO of Colombo City Holdings PLC, has over 25 years' experience in corporate leadership, academia and consultancy.

Ministry of Industries has opened a data collection system and asked industrialists to submit information on Cyclone Ditwaa damage by 2 PM on December 16, 2025 via www.industry.gov.lk. Assistance is available through officers at Divisional and District Secretariat offices.

Multiple countries and international agencies have mobilised extensive humanitarian aid to Sri Lanka after Cyclone Ditwah, with India leading immediate response and major consignments arriving (e.g., US 20,000 polysacks, UAE 1,116 food packets, Australia AUD1m). The UN is coordinating rescue, relief and early recovery efforts.