Open Access Journal Article

Macro-level insurance for financing post-disaster recovery: The case of National Disaster Insurance Policy in Sri Lanka

by Gayan Wedawatta a,* orcid Nadeeshani Wanigarathna b,* orcid Anuruddha Vijekumara c  and  Maheshi Tennakoon d
School of Infrastructure and Sustainable Engineering, Aston University, Birmingham, UK
Faculty of Science and Engineering, Anglia Ruskin University, Chelmsford, UK
National Building Research Organisation (NBRO), Colombo, Sri Lanka
UniSA STEM, University of South Australia, Adelaide, Australia
Author to whom correspondence should be addressed.
CEF  2023, 2; 1(1), 2;
Received: 25 July 2023 / Accepted: 27 August 2023 / Published Online: 2 November 2023


This paper evaluates the use of macro-level insurance to finance post-disaster recovery and reinstatement by investigating the case of the National Disaster Insurance policy implemented by Sri Lanka. The national scheme provided cover for all properties in the country against hazards such as flooding and provided compensation for those affected. Analysis of secondary data obtained from the organisations that managed the scheme showed that the scheme has delivered a much higher return compared to the total insurance premium paid, suggesting that the scheme has delivered a net positive benefit compared to the cost of the premium and can be considered a viable option. However, the existing secondary data did not reveal the values of other costs and indirect benefits associated with the scheme to compute a meaningful benefit-to-cost ratio. Further rigorous, evidence-based cost-benefit analysis is required to assess the cost-effectiveness of a scheme of this nature. A cost-benefit analysis approach based on an analytical hierarchy process is proposed as a possible solution to assess the cost-effectiveness of the scheme, which could be used by government organisations as an alternative, where analytical and research resources may be limited, to evaluate a range of disaster recovery financing options using stakeholder opinion.

Copyright: © 2023 by Wedawatta, Wanigarathna, Vijekumara and Tennakoon. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Wedawatta, G.; Wanigarathna, N.; Vijekumara, A.; Tennakoon, M. Macro-level insurance for financing post-disaster recovery: The case of National Disaster Insurance Policy in Sri Lanka. Climate Economics and Finance, 2023, 1, 2.
AMA Style
Wedawatta G, Wanigarathna N, Vijekumara A, Tennakoon M. Macro-level insurance for financing post-disaster recovery: The case of National Disaster Insurance Policy in Sri Lanka. Climate Economics and Finance; 2023, 1(1):2.
Chicago/Turabian Style
Wedawatta, Gayan; Wanigarathna, Nadeeshani; Vijekumara, Anuruddha; Tennakoon, Maheshi 2023. "Macro-level insurance for financing post-disaster recovery: The case of National Disaster Insurance Policy in Sri Lanka" Climate Economics and Finance 1, no.1:2.
APA style
Wedawatta, G., Wanigarathna, N., Vijekumara, A., & Tennakoon, M. (2023). Macro-level insurance for financing post-disaster recovery: The case of National Disaster Insurance Policy in Sri Lanka. Climate Economics and Finance, 1(1), 2.

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