Sri Lanka: Fiscal disaster risk assessment and risk financing options
This study presents a series of complementary options for a national disaster risk financing strategy for Sri Lanka, drawing significantly from international experience and based on a preliminary review of the current budget management of natural disasters and a prototype fiscal risk analysis in Sri Lanka.
The publication identifies the following options for a national disaster risk financing strategy in Sri Lanka (pp. 21-30):
- streamline damage-and-loss data collection and reporting;
- develop financial tools to support decision making, including a disaster risk model for the Ministry of Finances;
- develop a national disaster risk financing strategy;
- establish a national disaster reserve fund as a fast-disbursement mechanism for the financing of post-disaster operations;
- establish a robust catastrophe risk insurance program for public assets;
- enhance the management of contingent liability related to social protection;
- introduce a reinsurance strategy for the national insurance trust fund;
- strengthen the agricultural insurance program;
- enhance data sharing on agricultural insurance.