Cabinet approves US$450 million Indian assistance for 'Tithva' cyclone reconstruction

03-Jul-2026

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The Cabinet has approved the signing of agreements to obtain US$450 million in financial assistance from the Government of India for reconstruction and rehabilitation work following the destruction caused by Cyclone Tithva, which struck Sri Lanka in November 2025.

The proposal was submitted by President Anura Kumara Dissanayake in his capacity as the Minister of Finance, Planning and Economic Development.

The cyclone caused physical damage estimated at US$2.1 billion and economic losses amounting to US$1.4 billion, with the total cost of reconstruction estimated at US$3.5 billion.

During the disaster, the Government of India provided emergency relief and disaster response assistance to Sri Lanka under its Sagar Bandhu initiative.

Subsequently, during the official visit of India's External Affairs Minister to Sri Lanka on December 22, 2025, both countries agreed to provide a special disaster relief package under the same initiative.

Under the proposal, India will provide a total of US$450 million, comprising US$350 million as a loan and US$100 million as a grant.

Of the loan amount, US$250 million will be extended as a long-term loan, while US$100 million will be provided as short-term financing.

The grant component of US$100 million will support essential sectors, including infrastructure, telecommunications, healthcare, education, housing, water supply and disaster management.

Cabinet approval has been granted to enter into the necessary bilateral agreements with India to secure the proposed loans and grant assistance.