Sri Lanka faces long road to recovery as floodwaters recede; WFP warns of ‘catastrophic’ devastation

ECONOMIC COSTS OF FLOODS

Floods have recently hit multiple countries in South and Southeast Asia, including Indonesia, Vietnam, Thailand and Malaysia.

Rajiv Biswas, CEO of research firm Asia-Pacific Economics, noted that the economic impact is expected to ripple across affected nations, with losses in household spending, business activity and infrastructure.

But the small economy of Sri Lanka is likely to suffer the most severe blow, he said. 

Speaking to CNA’s Asia Tonight, Biswas said the estimated impact of the floods on Sri Lanka’s gross domestic product is about 0.8 percentage points.

Sri Lanka had previously been expected to grow around 3.5 per cent this year.

“The growth rate is likely to be well below the 3 per cent mark, probably around 2.7 per cent,” Biswas said.