Post-Cyclone Ditwah: Leveraging Geodata for MSME Recovery 📈

A recent study by the Institute of Policy Studies (IPS) highlights the critical role of geolocation data in coordinating disaster recovery for Sri Lanka’s micro, small, and medium enterprises (MSMEs) following Cyclone Ditwah. • Exposure Analysis Based on a survey of 2,500 MSMEs, 18.3% (460 firms) were at least moderately exposed to floods or landslides. Approximately 2.4% faced high exposure, situated directly within or within 20m of impact zones, risking severe physical damage. • Sector & Demographic Breakdown Manufacturing: Most exposed sector, comprising 38.5% of the survey sample. Trade & Retail: 14% of the sample; also faced significant supply chain disruptions. Agriculture & Fisheries: 7.8% of the sample. Vulnerability: 52.4% of businesses within 200m of impact zones are woman-owned. • Financial & Structural Risks Insurance Gap: Despite 54.3% of firms having experienced prior climate disasters, only 14% held private insurance, increasing the fiscal burden on the state. Debt Burden: 33.8% of MSMEs in proximity to impact zones carry existing loans, while 32% face active credit constraints. Awareness: 52.5% of high-risk MSMEs lack an understanding of national building standards, hindering climate resilience. • Policy Recommendations Experts urge the creation of a centralized MSME database integrated with the Department of Census and Statistics. Incorporating geocoordinates at the registration stage is seen as vital for rapid fund mobilization, reducing misallocation, and streamlining recovery. _Note: Analysis based on provisional January 2025 survey data combined with UNOSAT impact maps._