India Proposes $450 Million Aid Package for Sri Lanka's Cyclone Ditwah Recovery
India pledges $450M aid to Sri Lanka for cyclone recovery

In a significant demonstration of regional solidarity, India has stepped forward with a major financial commitment to help its island neighbour, Sri Lanka, rebuild after a devastating natural disaster. External Affairs Minister Dr. S. Jaishankar, acting as a special envoy for Prime Minister Narendra Modi, announced a comprehensive assistance package worth $450 million for reconstruction efforts in the cyclone-ravaged nation.

A Firm Commitment as First Responder

Speaking in Colombo on Tuesday, Jaishankar reinforced India's role as a reliable and immediate partner in times of crisis. He conveyed a letter from Prime Minister Modi, which formalized the substantial aid pledge. "The letter from Prime Minister Modi that I handed over builds on our first responder role and commits a reconstruction package of USD 450 million to Sri Lanka," Jaishankar stated. This announcement marks the next phase of support following the immediate humanitarian mission, Operation Sagar Bandhu.

Detailing the initial relief efforts, Jaishankar highlighted that Operation Sagar Bandhu successfully delivered approximately 1,100 tonnes of essential relief material to affected areas. This massive airlift and seaborne operation also included 14.5 tonnes of critical medicines and medical equipment, providing urgent care in the aftermath of the cyclone.

Breaking Down the Reconstruction Package

The proposed $450 million package is strategically designed to address Sri Lanka's long-term rebuilding needs. Jaishankar outlined that it comprises $350 million in concessional lines of credit and $100 million in outright grants. The funds are being finalized through close consultations with the Sri Lankan government to ensure they are directed toward the most critical infrastructure and recovery priorities.

"Recognising the urgency of rebuilding, PM Modi directed that we now engage with the Sri Lankan government to address their priorities in that regard," Jaishankar explained. This collaborative approach ensures the assistance aligns with Sri Lanka's specific requirements, from repairing damaged homes to restoring vital public infrastructure.

Supporting Broader Economic Recovery

Beyond physical reconstruction, Jaishankar emphasized India's commitment to bolstering Sri Lanka's overall economy, which faces fresh challenges just as it was emerging from previous difficulties. He identified tourism as a key pillar for revival. "We will continue to encourage tourism traffic from India," he said, acknowledging the sector's importance for livelihoods and national revenue.

The minister also pointed to the potential of increased Indian investments to provide a much-needed boost to economic activity. This multi-faceted support—humanitarian aid, reconstruction finance, and economic partnership—underscores the core tenets of India's "Neighbourhood First" policy, positioning New Delhi as a steadfast long-term partner in Colombo's stability and prosperity.

Cyclone Ditwah, which made landfall on November 28, has been one of the deadliest disasters to hit Sri Lanka in decades, claiming over 600 lives and affecting millions. The storm caused widespread flooding and landslides, severely damaging nearly 75,000 homes, with around 5,000 completely destroyed. Worst-hit regions include Gampaha, Colombo, Puttalam, and the central hill districts like Kandy and Badulla.