A nation stretched thin: Disaster fatigue in Sri Lanka

Out of shocks, Sri Lanka must instinctively conserve energy rather than innovate or take risks. The repercussions of this can be seen trickled throughout all levels of society.

- By Maya Karunaratne

Owners of a SME in Central Province clean their products impacted by the recent Ditwah cyclone

(Pic by Shehan Gunasekera)

SRI Lanka seems to be a nation in constant crisis. From the Easter attacks, the pandemic, the economic collapse, and waves of political upheaval in more recent times to previous decades of civil conflict, the Tsunami and regular natural disasters. Each shock has arrived before the country has had time to recover from the last. Crisis feels like the new normal. So, what does it mean for a nation when constant crisis becomes a way of life?

This ‘disaster fatigue’ affects not only households and institutions, but the very social fabric and economic activity that holds the country together.

Constant interruption of economic growth

“We can’t seem to catch a break.”

Sri Lanka’s cycle of overlapping crises directly impacts economic activity and derails any momentum gathered for growth. Disasters continue to interrupt the rhythms of work, trade, and production that keep the country afloat. This repeated disruption erodes national productivity and suppresses the very conditions needed for growth.

For Small and Medium Enterprises (SME) operating on thin margins and dependent on steady cash flow, even a short interruption can wipe out inventory, stall production, and reduce customer demand. SMEs typically lack insurance, financial reserves, or access to affordable credit, leaving them with few buffers against repeated shocks. Each crisis therefore deepens their vulnerability, making business owners increasingly cautious about reinvesting, expanding, or rehiring. As confidence weakens and risk aversion grows, the cumulative slowdown across thousands of SMEs translates directly into reduced productivity, job losses, and stalled national growth.