Economic recovery from natural disaster: Spotlight on interventions in Tsunami affected micro and SMEs in Sri Lanka's Galle district

Abstract

Purpose

This paper aims to analyse as to how the benefits to Tsunami affected small industry were misplaced and carried wrong priorities. Besides the support provided was insufficient for an effective recovery. There existed many governance‐related problems. Overall recovery was at a low figure of 64.8 percent. The occurrence of the natural disaster of this high magnitude leaves a trail of lessons to be learnt by both the government agencies and also the donor community. There was no shortage of either the funds or the commodities, but it was sadly the governance and the sensitivity to the suffering of the people.

Design/methodology/approach

The study employed the proven methodologies of a survey of available literature, web sites, and publications to obtain secondary data and information on industry especially the micro and SMEs in areas of disaster damage occurred because of Tsunami. The second methodology of research is in areas of collection of data on industry at national level and categorization for selection of sample size. Interviews formed an important source of information. Interviews were conducted with relevant stakeholders conducting various rehabilitation and re‐establishment programmes.

Findings

Micro and SMEs are important for economic development of Sri Lanka. These carry a strategic importance to generate employment. As such rehabilitation of industry affected by Tsunami is vital. Tsunami could have been used by the government, development agencies and donors as opportunity for rebuilding on modern lines. The main damage was caused to the plant and machinery. A right expenditure should have been in the direction of procurement of tools, equipment and machinery for the affected units. Unfortunately the help could not be organized to reach the right industry, in right quantity, and right way. Surprisingly, it was not because of shortage of funds.

Originality/value

The present case leaves lessons for development agencies, government departments and welfare associations. No such extensive study seems to have carried out.

Citation

Sardana, G.D. and Dasanayaka, W.S.B. (2013), "Economic recovery from natural disaster: Spotlight on interventions in Tsunami affected micro and SMEs in Sri Lanka's Galle district", Competitiveness Review, Vol. 23 No. 4/5, pp. 384-397. https://doi.org/10.1108/CR-03-2013-0032