The 2004 Tsunami was catastrophic. It claimed 35,322 lives islandwide, injured 21,441, and orphaned 1,500 children. Over 500,000 people were displaced and many more indirectly affected. Around 100,000 houses were damaged or destroyed and over 150,000 people lost their homes. 2/3ds of the country’s coast line was ravaged. The damage was estimated to be 4.5 of the GDP.
Sri Lanka Recovers
Despite the effects of Tsunami and the rise in oil prices the economy grew by 6% in 2005 and 7.4% in 2006 and it is forecast that Sri Lanka will record a growth rate of 7.5% in 2007. Sri Lanka had an outstanding year in 2006 with overall unemployment declining by 6 .4 %, exports growing by 8% whilst the country was able to attract over 2 billion US $ in foreign remittances. The FDI inflow exceeded 500 million US $ thereby highlighting foreign investor confidence in the resilience of the Sri Lankan economy.
Displaced move out of transitional shelters into reconstructed permanent homes
73% of the Tsunami IDPs living in temporary shelters in the North and East have been rehoused in permanent dwellings.
No. of Tsunami IDPs in temporary shelters as at Dec. 2005 - 43, 496
No. of Tsunami IDPs in temporary shelters as at February 27, 2007 - 11, 764
Permanent housing
While the Government played the primary role in reconstruction, development partners, civil society and private donors made a significant contribution. 76,586 houses out of the 114, 069 houses that were partially or fully damaged have been re-constructed at a 67 % achievement level.
The Eastern province has witnessed the completion of 36,141 houses at a 59% achievement level whilst the Northern province has registered an achievement level of 28% despite the impediments of incessant terrorism and conflict affecting the building and construction industry in the North.
Restoring livelihoods:
An estimated 150,000 people lost their livelihoods as a result of Tsunami damage, including workers in fisheries (50% total jobs lost), service sector (45%) and agriculture (5%). To date, livelihoods restoration has been via cash grants, cash for work, asset replacement, and micro-finance systems.
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