India’s $450 m reconstruction package after Cyclone Ditwah

Continuity, credibility and a strategic path to Sri Lanka's recovery

- By A.G.S. Swaminathan Sharma

SRI Lanka's journey toward economic stabilisation has been repeatedly interrupted by external shocks such as natural disasters, global health emergencies, and macroeconomic crises.

The devastation caused by Cyclone Ditwah is the latest reminder of the country’s vulnerability to climate-related risks at a time when fiscal space remains constrained. Against this backdrop, India’s announcement of a $.450 million reconstruction assistance package represents not merely emergency support, but the continuation of a longstanding and structured partnership that has consistently underpinned Sri Lanka's recovery during national crises.

From immediate relief to structured reconstruction

India's response to Cyclone Ditwah followed a familiar and well-tested pattern. Immediate humanitarian assistance was deployed under Operation Sagar Bandhu, launched on the day the cyclone made landfall. Indian naval vessels delivered relief supplies, Indian Air Force helicopters conducted aerial rescue and logistics operations for over two weeks, and disaster response teams and medical units provided lifesaving support across affected regions.

However, the more consequential intervention, particularly from an economic and fiscal standpoint, is the $450 million reconstruction package, formally conveyed by India’s External Affairs Minister Dr S. Jaishankar during high-level engagements in Colombo with President Anura Kumar Dissanayake and Foreign Minister Vijitha Herath.

The package comprises:

5 350 million in concessional Lines of Credit and

©5100 million in direct grants

It is being finalised in close consultation with the Sri Lankan Government to ensure alignment with national reconstruction priorities.

A familiar role: India as Sri Lanka's first responder in times of crisis