Cyclone Ditwah Threatens 374,000 Jobs and $16 Billion GDP, Says ILO

COLOMBO (News 1st); The International Labour Organization (ILO) has issued a preliminary assessment revealing the severe labour market and economic impact of Cyclone Ditwah in Sri Lanka.

According to the report, 1.7 million people—nearly 7.5% of the national population—live in the affected areas.

The cyclone has disrupted livelihoods for approximately 374,000 workers, including 244,000 men and 130,000 women, across agriculture, industry, and services.

Sectoral estimates show 85,000 agricultural jobs, 125,000 industrial jobs, and 164,000 service jobs at risk.

Monthly earnings losses could reach US$48 million, placing informal and low-wage workers in immediate jeopardy.

The ILO warns that 16% of Sri Lanka’s GDP—valued at US$16 billion—is at risk, with impacts concentrated in a few districts, raising concerns about uneven recovery and prolonged local economic disruption.

Agriculture and related activities, already vulnerable to climate shocks, have been disproportionately affected, threatening food security and rural livelihoods.

The report calls for emergency cash assistance linked to decent employment programs, such as debris removal and infrastructure repair, alongside support for MSMEs through grants and subsidies to retain workers and restart operations.

ILO emphasizes that this labour market shock comes amid existing challenges from the post-conflict period, COVID-19, the debt crisis, and slowing exports.