Sri Lanka, devastated by a destructive cyclone, has unveiled a substantial compensation package to rebuild damaged homes, despite the island's current vulnerability to further flooding and landslides. The government confirmed 607 deaths and 214 missing, feared dead. President Anura Kumara Dissanayake described the situation as the country's worst natural disaster. Over two million people, nearly 10% of the population, have been affected. The Ministry of Finance announced yesterday that survivors will receive up to ten million rupees ($33,000) to purchase safer land and build a new house. The government will also provide one million rupees in compensation for each death or permanent disability. The Disaster Management Centre reported over 71,000 homes damaged, including nearly 5,000 completely destroyed by last week's floods and landslides. Approximately 150,000 people remain in state-run shelters, down from a peak of 225,000. The International Monetary Fund (IMF) announced it is considering Sri Lanka's request for an additional $200 million, to be added to a $347 million tranche due this month. The IMF, based in Washington, stated late yesterday: 'The IMF continues to maintain close contact with Sri Lankan authorities during this difficult time and reaffirms its support for recovery, reconstruction, and future resilience efforts.' Cyclone Ditcha has devastated vast areas of Sri Lanka, which is still recovering from its worst economic crisis in 2022 following a $2.9 billion, four-year bailout agreement with the IMF reached in early 2023. Dissanayake confirmed in parliament yesterday that the economy has shown significant recovery, but not enough to withstand the recent shock alone. Meanwhile, the Disaster Management Centre forecasts more rain in several parts of the country, including the hardest-hit central region, raising fears of further landslides and disrupting cleanup efforts. Residents evacuated from central hills prone to landslides have been advised not to return home immediately, even if their properties were unaffected. A new landslide warning was issued on Friday for areas not previously covered by alerts.
