Cyclone "Ditwah" Economic Impact Limited: Ceylon Chamber 📈

The Ceylon Chamber of Commerce reports a moderate economic impact following the recent cyclone, with core sectors recovering within two months. While the World Bank estimates total damages at US$ 4.1 Bn (4% of GDP), domestic indicators show rapid resilience. • Sector Recoveries & Highlights: • Agriculture: Impact lower than feared; 10% of land fully damaged. Operations have returned to normal with no sustained food inflation or scarcity. • Tourism: Short-term arrivals dipped 5-10% post-cyclone but January 2026 data shows a 10% YoY increase. City hotel occupancy is projected to exceed 70% this month. • Banking: Minimal exposure with only ~1% of loan portfolios affected. • ICT/BPM: Sector earned an estimated US$ 1.65 Bn in 2025; remains a key growth pillar for 2026. • 2026 Growth Drivers: • Construction: Expected to rebound via post-cyclone reconstruction, Port City developments, and resumed infrastructure projects. • Exports: Apparel & textiles and other export sectors saw temporary shutdowns, but December 2025 data suggests no material long-term impact on orders. • Consumption: Supermarket volumes have already returned to pre-cyclone levels, signaling robust domestic demand. • Strategic Outlook: India remains the top source market for tourism. Growth in 2026 will hinge on hotel refurbishments and the entry of international brands to drive higher per-visitor spending.