The Sri Lankan government says it has provided relief to most residents whose houses were partially damaged, enabling them to carry out repairs.
However, it acknowledges delays in compensating families who lost their entire homes or businesses in the cyclone.
“We are in the process of identifying suitable and safe land to build new houses. Once the areas are identified, the government will provide the aid,” said KG Dharmathilake, a senior official in the disaster management division.
Officials argue that rather than rushing through relief efforts, the priority is to “build back better” so that new homes and businesses are resilient enough to withstand future disasters.
Responding to criticism over delays in providing financial assistance to those affected, Dharmathilake insisted that more than 80% of affected residents had already received financial help to repair damaged houses.
Sri Lanka’s current foreign reserves stand at around $7bn. Economists like Wignaraja say the government should just about be able to tide over the flood crisis and the fuel price hike with effective fiscal management.
“But they will be in difficulty if the fallout of the Middle East crisis continues for a while,” he says.
With the financial situation already strained, the government is also worried that they will lose foreign exchange inflows due to the Gulf war.
Sri Lanka last year received about $7bn in remittances from workers abroad – mainly from Gulf countries. Though there haven’t been any massive layoffs in those countries yet, there are concerns over new employment opportunities for Sri Lankans.
How the government confronts the enormous reconstruction work and the economic challenges due to the Gulf war may ultimately become the defining test of President Dissanayake’s leadership.
Additional reporting by Ranjan Arun Prasad, BBC Tamil Service in Kandy