The aftermath of Cyclone Ditwah has underscored an unavoidable truth: any future debt arrangements Sri Lanka enters must incorporate mechanisms that provide flexibility when climate shocks strike. As Sri Lanka plans its gradual return to international capital markets post-restructuring, future debt instruments must incorporate climate-contingent mechanisms.

This article takes a look back at insights shared in an interview series produced by Echelon and CSF earlier this year. The series brought together policymakers, financial sector leaders, conservation practitioners, tourism experts, and private-sector innovators to explore how Sri Lanka can integrate natural capital into its economic recovery.  

CSF’s new report ‘Shifting Grounds: Unpacking the Tensions between Real Estate Development and Nature in Colombo’ examines this paradox of ‘green living’ and the destruction of natural spaces through the lens of one of Colombo’s nature-rich suburbs. The findings of the report are especially relevant now post Cyclone Ditwah.

The immediacy of any disaster we see the outpouring support from Sri Lankans - coming together to raise money, collect rations and clothes and deliver them where needed. But to break this cycle of stepping in where the state and government fail, we need proactive governance and planning, and not reactive as we have been for decades.

Sri Lanka must shape recovery governance that is both legally legitimate, and reflective of the inclusivity principles Sri Lanka has committed to under the Sendai Framework. A recently appointed committee to manage rebuilding funds is not inclusive, or reflective of contemporary Sri Lanka, and the complex needs in post-disaster recovery and reconstruction.

CSF Co-founder/Director Anushka Wijesinha is interviewed by Maleen Saeed of Al Jazeera news in the aftermath of Cyclone Ditwah (5 Dec 2025). He shared insights on the impacts to the economy, food prices amid supply shortages, and macroeconomic risks.