Be as high as Rs. 30 bln

Sri Lanka could be facing economic losses in the range of around Rs. 30 billion based on some preliminary estimates of the cost of last week’s twin disasters of floods and landslides

A rough estimate of the total economic loss would be around Rs.30 billion covering all sectors including plantations and agriculture, a senior government official said adding however that this was an unofficial assessment as the relevant sate authorities have not made any computation as yet.

Other official sources said that at least Rs.15 billion is needed to pay for rebuild- ing damaged houses, buildings and over Rs.30 million to pay compensation for the next of kin of the dead, adding that the authorities are yet to make actual assessment of total economic loss.

Last week’s high intensity rains has left scores dead, dozens missing, 631,346 people affected, 1,508 houses fully damaged and 7,617 houses partially destroyed in 15 districts.

Large scale business enterprises and factories were not much affected but small businesses like shops and studios in commercial areas have been disrupted, Chairman of the National Insurance Trust Fund (NITF) Manjula de Silva told the Business Times adding that the total loss caused to large small and medium scale businesses is still to be assessed by the relevant authorities.

However he noted that according to rough estimates, there may be around 500 SMEs affected by the twin disaster and the loss would be around Rs. 250 million.

The NITF is prepared to pay claims for damages once the correct method is adopted after completing the assessment of losses, he disclosed. “We have to ascertain the damage. Once we get all the particulars we will start paying the flood and land victims,” he said.

The national natural disaster and emergency relief insurance cover was introduced last year for natural disasters covering the whole country, and pay- ment of claims have been expanded to include a range of accidents due to such disasters, he revealed.

A sum of Rs.500 million has also been allocated for further improvement of this scheme. Any business for which annual turnover does not exceed Rs.10 million is covered up to Rs. 2.5 million each in respect of damages caused by the catastrophe, he said. The government has decided to pay compensation of Rs. 100,000 each for deaths of persons other than for fishermen and property damage (house and SME) at a maximum is Rs. 2.5 million, State Minister of Public Enterprise Development Lakshman Yapa Abeywardena disclosed.