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, 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