Cyclone Ditwah to delay Sri Lanka's fragile recovery

Sri Lanka's fragile economic recovery will be delayed as Cyclone Ditwah's devastation of homes, roads and vital crops pushes more families into poverty, with officials warning the bill to rebuild could soar to $7 billion.

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The worst economic crisis in decades, which peaked in 2022, had already doubled Sri Lanka's poverty rate to nearly 258 of its 22 million people.

A $2.9 billion IMF bailout sparked a tentative rebound, with growth seen at 4.5% this year, but analysts say growth will slow to about 38 in 2026 due to Ditwah.

Striking in late-November, Ditwah is the country's deadliest natural disaster since the 2004 tsunami, killing 635 people and affecting about IO% of the population. It wrecked critical infrastructure and key crops such as rice and tea.