International Economic Developments

Sri Lanka to Host Donor Conference for Rebuilding Funds

Sri Lanka will host a donor conference in January 2026 to secure critical funding for rebuilding after Cyclone Ditwah. The initiative underscores the country’s urgent need for financial support to restore infrastructure, homes, and businesses.


Sri Lanka launches international donor drive to raise cyclone recovery funds


Sri Lanka is set to host an international donor conference in January 2026 aimed at raising vital funds for post-cyclone reconstruction and recovery. Deputy Finance Minister Anil Jayantha Fernando confirmed the plans, highlighting the country’s pressing need for financial support to restore infrastructure, rebuild homes, and revive businesses affected by Cyclone Ditwah.

The recent cyclone caused widespread damage across Sri Lanka, leaving infrastructure, residential areas, and commercial establishments severely affected. To address these challenges, the government has earmarked an additional 500 billion rupees for relief and recovery in 2026. Of this allocation, 250 billion rupees are dedicated to infrastructure restoration, 100 billion rupees to rebuilding destroyed homes, and 200 billion rupees to supporting business recovery in agriculture and other industries.

Minister Fernando emphasized that funding for these efforts will come from a combination of domestic and international sources. Part of the financing will be drawn from a cash buffer maintained by the Treasury Operations Department, while additional resources will be generated through higher domestic taxes. The remaining funds are expected to come from foreign aid and donor contributions, highlighting the importance of the upcoming conference.

“Under the last Rebuilding Sri Lanka Fund meeting, we decided to hold a donor conference in January,” Minister Fernando said at a media briefing. He confirmed that the conference will be hosted in Sri Lanka, with further details to be announced closer to the event date.

The United Nations Development Program (UNDP) has launched a global appeal to support Sri Lanka’s recovery, acknowledging that the country’s Treasury alone cannot cover the full financial burden of the disaster. The appeal emphasizes international collaboration as a key factor in enabling swift and sustainable reconstruction efforts.

Sri Lanka is also under a loan agreement with the International Monetary Fund (IMF) and has requested 200 million dollars from the IMF’s Rapid Finance Instrument to mitigate the immediate financial strain caused by the cyclone. These measures reflect the government’s strategy to combine domestic resilience with international support to accelerate recovery and restore normalcy across affected regions.

The upcoming donor conference is expected to bring together international organizations, development agencies, and global partners to discuss funding strategies, prioritize reconstruction projects, and ensure transparent allocation of resources. The event will serve as a platform to highlight the scale of devastation, the urgent needs of communities, and the long-term vision for resilient infrastructure and economic recovery in Sri Lanka.

Experts stress that rapid mobilization of funds is essential not only to restore physical infrastructure but also to stabilize local economies and safeguard livelihoods. Agricultural production, small businesses, and regional commerce were heavily impacted by Cyclone Ditwah, making timely financial support crucial for sustaining growth and preventing long-term economic setbacks.

Beyond immediate recovery, Sri Lanka aims to use the donor conference to promote resilient and sustainable development practices. By incorporating modern engineering solutions, disaster-resistant construction, and community-driven planning, the country seeks to reduce vulnerability to future cyclones and natural disasters.

Minister Fernando noted that the government is committed to transparency and accountability in managing the reconstruction funds. All contributions, whether from domestic revenues or international donors, will be closely monitored to ensure that projects meet high standards of quality and reach the communities that need them most.

As preparations continue for the January 2026 conference, the government is engaging with stakeholders to identify priority areas, assess damage reports, and formulate comprehensive recovery strategies. The event represents not only a financial necessity but also a symbolic call for global solidarity in helping Sri Lanka recover from one of its most challenging natural disasters in recent years.

With international attention focused on the nation’s recovery, the donor conference promises to be a pivotal moment for Sri Lanka. It is expected to accelerate rebuilding efforts, restore essential infrastructure, and provide hope and stability to thousands of families and businesses still affected by Cyclone Ditwah.