SRILANKA, Dec. 4 -- Cyclone Ditwah, which struck Sri Lanka in late November, causing widespread flooding and landslides, is projected to shave off approximately 0.5 percent to 0.7 percent from the country's real GDP growth, according to a flash note released by First Capital Research (FCR).

The assessment draws on the historical precedents such as the 2016 floods and 2004 tsunami, suggesting that the disruptions to consumption, investment and net exports will outweigh the temporary economic activity generated by the government's relief spending. Despite the immediate setback, FCR maintains its growth estimate of 3.0 percent to 4.0 percent for 2026.

The adverse weather conditions are expected to weigh heavily on private consumption, whi...