103271 Stories of Impact A series highlighting achievements in disaster risk management Addressing Climate Risks in Sri Lanka REGION: SOUTH ASIA Since 2000, food and droughL evenLs have FOCUS: CLIMATE RESILIENCE cumuladvely affected more than 13 million people COUNTRY: SRI LANKA across Sri Lanka. Regular flooding, drought, and landslides are natural hazards that threaten the long-term growth and development of the RESULTS: counLry. The impacts of these events are growing due to increased development, which puts more Technical assistance from GFDRR and the World Bank informed recent steps to enhance Sri Lanka's disaster resilience, climate change. including a $110 million investment toward In an effort to reduce the adverse impaCtS of reducing immediate and future physical risks, as well as provisions for accessing these events and adapt the counLry's stock $102 million in the immediate aftermath of of infraStruCture to extreme climate shocks, a natural disaster. the Global FacilitLy for Disaster Reduction * A portion of these investments will and Recovery (GFDRR), the World Bank, and improve transport continuity during major the government of Sri Lanka developed the rain events, benefitting 720,000 people. About 25,000 children will also be made "Comprehensive Approach to Climate Risk safer through the mitigation of school Management program. infraStructure. caThe program will significaney contribute to building long-term resilience. ResultS from risk modeling Studies of nine river basin that cover 30% of the country's land mass will be used to inform the development of pu r an eSimaed billion program for basin- Global Facility for Disaster Reduction Ro wide flood and drought risk mitigation CONTEXT: Since 2000, about 375,000 people have been affected by flooding annually in Sri Lanka. Though the country has faced regular floods and droughts that have caused widespread damage, the economic impact of such events is usually not assessed or underestimated. According to World Bank estimates, average annual losses add up to $380 million - or 3% of total government expenditures. Major disaster events are occurring with increasing frequency, with floods in 2011 and 2014, as well as droughts in 2012. In light of losses generated by these events, the government of Sri Lanka requested support from the World Bank and GFDRR to help address the urgent need to protect assets from the negative economic and fiscal impacts of climate- related disasters. APPROACH: With GFDRR and World Bank support, Sri Lanka's "Evidence shows that minstreaming disaster comprehensive investment program addresses short-term management into policy formulation can save and long-term physical and financial resilience. This includes: lives and reduces millions in damages." * Short-term risk: a $90 million component to implement - SM. Mohamed Secretary Ministry of urgent disaster risk management investments in flood Disaster Management, Sri Lanka mitigation, transport continuity, and school protection to reduce immediate physical risks in high priority areas. * Long-term risk: a $13 million component to provide LESSONS LEARNED: recommendations for the design of $1 billion in Linking risk identification studies with immediate investments (covering 30% of land mass) in new risk reduction investments can significantly enhance infrastructure to mitigate current and future disaster risks. the added value of a program and mitigate future * Fiscal risk: access to quick liquidity following a natural risk. Addressing both shor( and long-term risks t disaster in the amount of $102 million to help plan an climate change is critcal to respond to immediate efficient response to a catastrophic event. This World Bank priorities and to build longer-term resilience. While credit line is known as a Catastrophe Deferred Drawdown the imperative to focus on short-term risk is usually Option [Cat-DDO). undisputed, the need to invest in long-term risk identification studies can seem more intangible. NEXT STEPS: Combining investments under the Climate Resilience Improvement Project (CRIP) to reduce immediate risks The government of Sri Lanka will next identify future and to conduct risk modeling studies to inform long- investments informed by ongoing analytical work under term investments has provided a concrete framework the CRIP and reach out to international partners to help of future investment in risk reduction. implement those recommendations. This will provide an opportunity for GFDRR and the World Bank to collaborate Comprehensivenprograms cangactaasecatalsts for with other international agencies to improve Sri Lanka's resilience to disaster risk. capacity to manage disaster risks and enhance financial protection. The program, for instance, helped operationalize the Sri Lanka Disaster Management Act enacted in May 2005. Under this legislation, a national Contact policy and plan had been envisioned but had failed to Shaela Rahman matrialize. GFDRR's engagement with a wide range of srahman@worldbank.org www.gfdrrEorg government stakeholders helped build consensus and push those policies forward.