Environmental advocates, including Greenpeace South Asia, have framed this as a demand for “loss and damage” compensation, underscoring how developing countries like Sri Lanka bear disproportionate climate burdens despite minimal emissions.

In the wake of Cyclone Ditwah, one of the most destructive natural disasters in Sri Lanka’s recent history, the island nation is gearing up to apply for $25 million from the United Nations’ Fund for Responding to Loss and Damage (FRLD). The application is intended to support recovery efforts.

The cyclone, which struck in late November 2025, unleashed unprecedented floods, landslides and mudflows, claiming hundreds of lives and displacing thousands. Officials announced the funding pursuit during a climate forum in Colombo, highlighting the nation’s urgent need for international assistance amid mounting economic and humanitarian challenges.

The move comes as Sri Lanka grapples with the aftermath of the storm, which has exposed vulnerabilities in its disaster management systems and amplified calls for global climate finance. With damages estimated at $4.1 billion – equivalent to about 4 per cent of the country’s 2024 GDP – the government is rallying domestic and foreign resources to rebuild homes, infrastructure, and livelihoods.

The Fund for Responding to Loss and Damage, established to aid climate-vulnerable developing nations, represents a critical lifeline for Sri Lanka, a country increasingly battered by extreme weather events linked to climate change.

The Fury of Cyclone Ditwah: A Trail of Destruction

Cyclone Ditwah made landfall on November 28, 2025, originating from the Bay of Bengal and intensifying into a severe cyclonic storm. It brought torrential rains, gale-force winds exceeding 100 km/h, and triggered widespread flooding across 18 districts, particularly in the central and eastern provinces. The Disaster Management Centre (DMC) reported that the storm affected nearly 2.3 million people – about 10 per cent of Sri Lanka’s population – with vulnerable groups such as children, the elderly, and pregnant women suffering the most.

The death toll climbed to 643 by mid-December 2025, with 183 individuals still missing. Over 6,000 homes were completely destroyed, and more than 114,000 partially damaged, forcing over 280,000 people into temporary shelters or with relatives. In the Hasalaka area of Kandy District, a catastrophic debris avalanche – described as the deadliest type of landslide in Sri Lanka – ripped through a mountainside, burying an entire village under mud and rubble five kilometers away. Agricultural losses were staggering, with floods submerging paddy fields, tea plantations, and coconut groves, totalling $814 million in damages and threatening food security for months to come.

Infrastructure bore the brunt of the assault: roads, bridges, and power lines were severed, isolating communities and hampering rescue operations. The health sector, crucial for post-disaster response, faced $68 million in damages, including the need to relocate hospitals at a cost of LKR 7,904 million. According to a post-disaster needs assessment by the ministry of health, full recovery for healthcare facilities alone requires LKR 21,026.73 million. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) noted that the floods were the worst in decades, exacerbating existing economic woes from Sri Lanka’s 2022 financial crisis.

Swift Humanitarian Response and International Aid

The international community responded rapidly to the crisis. The UN launched a $35.3 million Humanitarian Priorities Plan in December 2025, focusing on immediate needs like food, clean water, and shelter. The Central Emergency Response Fund (CERF) allocated funds to partners, enabling cash assistance and sanitation support for affected families.

Japan extended a $2.5 million emergency grant through organizations like the International Organization for Migration (IOM), World Food Programme (WFP), and UNICEF, targeting food and non-food items. The IOM separately appealed for $7.3 million to aid over 100,000 people, emphasising shelter, protection, and mental health services. Canada contributed $215,000 via the emergency disaster assistance fund to bolster the Sri Lanka Red Cross’s relief operations.

Domestically, Sri Lanka’s recovery fund has surpassed LKR 8.5 billion (approximately $27.5 million) in foreign contributions by January 2026, as announced by a top finance ministry official. The government rolled out a $4.3 billion recovery plan, prioritizing rebuilding homes, infrastructure, and agricultural revival. UNOPS and UNESCO are supporting response efforts, with UNESCO aligning recovery with national priorities in education and cultural heritage preservation. The UNDP established a giving facility for flood relief and livelihoods, while the global facility for disaster reduction and recovery (GFDRR) is aiding in damage assessments.

Pursuing UN Loss and Damage Funding: A Milestone Application

Officials revealed plans to tap the FRLD for $20-25 million at a forum organized by the Slycan Trust in Colombo on February 1, 2026. Chamani Kumarasinghe, additional director at the Climate Change Secretariat, confirmed preparations for the application, emphasising the fund’s role in addressing unavoidable climate impacts. Dennis Mombaue of Slycan Trust highlighted the timeliness, noting the fund’s first call for proposals amid global advancements in climate finance.

Rohan Cooray, a specialist with the commissioner general of essential services, projected the funding could cover critical gaps in reconstruction. This marks Sri Lanka as one of the first nations to seek FRLD support post its operationalisation at COP28 in 2023. Environmental advocates, including Greenpeace South Asia, have framed this as a demand for “loss and damage” compensation, underscoring how developing countries like Sri Lanka bear disproportionate climate burdens despite minimal emissions.

Challenges Ahead: Building Resilience for the Future

Recovery faces hurdles, including bureaucratic delays, funding shortfalls, and the risk of recurring disasters. The government’s disaster framework revealed gaps in early warning systems and infrastructure resilience, prompting calls for reforms. With climate change intensifying cyclones – Ditwah being the third major storm in five years – experts urge investments in sustainable agriculture, flood defences, and community-based risk management.

The $4.1 billion damage estimate from the World Bank’s Global Rapid Post-Disaster Damage Estimation (GRADE) report underscores the economic toll, potentially derailing Sri Lanka’s fragile post-crisis recovery. As rebuilding begins, focus shifts to inclusive strategies that protect marginalised communities and integrate climate adaptation.

In applying to the FRLD, Sri Lanka not only seeks immediate relief but also sets a precedent for global equity in climate finance. As one official put it, “This is about justice – helping nations like ours recover from disasters we didn’t cause.”

Image: Eranga Weerasingha/Youtube.com