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, butit wassadly 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. Assuch rehabilitation of industry affected by Tsunami
is vital. Tsunami could have been used by the government, development agencies and donors as
opportunity forrebuilding on modern lines. Themain damage was caused to the plant andmachinery.
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, gov
