Insurance payouts kick off as Cyclone Ditwah leaves trail of destruction

• Insurance regulator convenes meeting with all insurers to establish a mechanism for supporting affected businesses and property owners
• Extensive claims are being verified before full disbursement, ensuring prompt and accurate compensation for those affected

The insurance companies in Sri Lanka have mobilised swiftly to provide relief following the devastation caused by Cyclone Ditwah, with the authorities confirming that the compensation payments for minor property damage have already begun. 

The Insurance Regulatory Commission of Sri Lanka convened a meeting with all insurers to establish a mechanism for supporting the affected businesses and property owners, according to Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma.

Under the initiative, the insurers are processing the claims for damaged properties, businesses and loss of life, with partial payments being released immediately where possible. 

The extensive claims are being verified before full disbursement, ensuring prompt and accurate compensation for those affected.

The government’s broader Rebuilding Sri Lanka programme has so far secured Rs.1.89 billion in support from domestic contributors, Sri Lankans living overseas and various organisations to assist the recovery efforts, a statement by the President’s Media Division said.

Cyclone Ditwah’s impact on industry is substantial. The preliminary data from the Industry Ministry show that more than 3,200 enterprises across all categories have reported damage, including 138 large-scale, 718 medium-scale, 1,134 small-scale, 1,009 micro-scale and 285 export-oriented industries. 

The Gampaha district accounts for the highest number of affected enterprises, with officials noting that these figures reflect only the data entered into the ministry’s database so far and do not yet capture the full extent of losses.

A new geospatial analysis by the United Nations Development Programme (UNDP) highlights the scale of the disaster: over 1.1 million hectares, nearly 20 percent of the country’s land area, were inundated, affecting nearly 720,000 buildings. 

Infrastructure damage spans more than 16,000 kilometres of roads, 278 kilometres of railway tracks and 480 bridges. The cyclone has claimed over 600 lives and caused damages estimated at more than US $ 1.6 billion, marking it the deadliest disaster in the country since the 2004 Indian Ocean tsunami.

The UNDP data also show that more than half of the people in the flooded areas were already living in vulnerable conditions, including unstable income and high debt, meaning the cyclone’s impact risks creating long-term setbacks for households and businesses alike.