The Hindu : International : Sri Lanka's loss put at $1.3 billion

Online edition of India's National Newspaper
Thursday, Jan 06, 2005

International

International

Sri Lanka's loss put at $1.3 billion

By V.S. Sambandan

COLOMBO, JAN. 5. Last week's Indian Ocean tsunami could cost Sri Lanka about $1.3 billion during the year, according to preliminary estimates made by the Central Bank of Sri Lanka.

At a special press conference on the economic impact, Sunil Mendis, Governor, said the Sri Lankan rupee had appreciated against the dollar, with inflows of foreign aid.

With more inflows expected, "it is believed that the rupee is likely to appreciate further."

Of the damage assessed, around $550 million would be an external component which would go to meet imports to rebuild the affected sectors particularly infrastructure, he said.

The three sectors that bore the brunt of the tsunami were infrastructure, leisure and fishing.

The major export earners, such as tea, rubber and garments, were "not affected," but "infrastructure was affected badly."

Impact on tourism

In tourism, of the 14,000 rooms, about 4,000 rooms were affected, of which 3,000 rooms could be "rehabilitated in three to six months," Mr. Mendis said. The impact on the fisheries sector, he said, would take "between three and six months" to correct, while infrastructure would take a longer time.

He said the breakdown of remittances and damage were under preparation. The Bank has also received $15 million as contributions to its special tsunami fund.

He said it would accept credit card payments made through its Web site in seven denominations: dollar, pound, yen, euro, Canadian and Australian dollars and Sri Lankan rupees.

Cheques, bank drafts, money orders could be drawn in favour of "Central Bank of Sri Lanka. O/A Disaster Relief" and mailed to the Chief Accountant, Central Bank of Sri Lanka, Janathipathi Mawatha, Colombo - 1, Sri Lanka. The Bank has also opened three accounts — with the Federal Reserve Bank, New York, the Deutsche Bundes Bank, Frankfurt and Bank of Ceylon, London, for direct remittances.

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