The UNDRR’s (United Nations Office for Disaster Risk Management) Sri Lanka disaster management reference handbook estimates that, on average, Sri Lanka incurs Rs. 50 billion (US$ 313 million) in annual disaster losses, of which Rs 32 billion (US$ 200 million) stems from flood losses. During the southwest monsoon season, vast regions are inundated, with 77 out of the country’s 103 major river basins, including the Kelani River basin, facing significant flood vulnerabilities.

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The Kelani River, one of three major rivers in the country, and the primary driver of flooding in the Western Province, increases vulnerabilities in Colombo, Hanwella, Kolonnawa, Kaduwela, Homagama, Wattala, Dompe, and Biyagama areas. Intense rainfall in its upper basin often results in flooding in its lower basin, impacting the Colombo and Gampaha districts. When rainfall exceeds 250 mm in 24 hours, areas such as Biyagama, Kelaniya and Kaduwela, frequently bear the brunt of these flooding events.

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Flooding in Sri Lanka is driven by multiple factors including intense monsoonal rainfall, inadequate drainage systems, and rising water levels in inland water bodies. Climate change has exacerbated these challenges by increasing the frequency of extreme weather events, and intensifying rainfall.

Flood vulnerabilities surrounding Biyagama FTZ 

Established in 1985 and located just 20 kilometers from Colombo, the Biyagama Free Trade Zone (BFTZ) is a key economic driver in Sri Lanka. Spanning 450 acres, it houses numerous local and international businesses, primarily in the fashion and apparel sector, which play a significant role in boosting the country’s export earnings and employment. However, its geographical location is highly susceptible to flooding, leading to widespread damage and disruptions.

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Around the BFTZ, many micro, small, and medium-scale fashion and apparel businesses operate leveraging the proximity to raw materials, labour, and logistical infrastructure. However, these enterprises are even more vulnerable to flooding than those within the zone. Unlike the businesses within the BFTZ, which benefit from better infrastructure and resources, these smaller operations lack the capital, infrastructure, and support systems necessary to prepare for or and recover from floods. 

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Flooding poses several critical challenges for businesses:

• Operational disruptions and economic losses

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Flooding damages infrastructure, machinery, and raw materials, halting production. These delays result in missed deadlines, contractual penalties, and diminished competitiveness in global markets.

• Workforce challenges

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Thousands of employees working in the zone reside in flood-prone neighbourhoods, and flooding disrupts their ability to commute, leading to absenteeism and reduced productivity. Waterborne illnesses and other health risks further strain the capacity of the workforce. One plant manager noted, “Floods and heavy rain make my staff prone to illness. Although I understand and appreciate their circumstances, we must   continue with business operations.” 

• Greater financial strain

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Recovering from flood damage is particularly challenging for small businesses due to limited access to capital or credit. While larger enterprises often secure loans or insurance coverage, smaller businesses are excluded from such safety nets. Only two of the 22 small and medium-sized businesses operating around the BFTZ have insurance, leaving the majority vulnerable to the financial impacts of flood damage. 

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Insights from the workshop

Recognizing the urgent need to address these vulnerabilities, SLYCAN Trust organized a workshop on July 30th, 2024, in Biyagama. The session explored the impact of climate disasters, particularly flooding, on the fashion and apparel sector players operating around the BFTZ. 

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The workshop brought together 20 stakeholders, including government officials, private sector representatives, and industry associations. Participants engaged in discussions about the challenges and developed actionable strategies to enhance resilience. A detailed questionnaire facilitated interactive discussions, capturing diverse perspectives and aspirations for a climate-resilient future.  SLYCAN Trust also carried out primary data collection to gather firsthand insights from MSMEs.

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Key themes that emerged from the workshop were:

• Building resilient systems: Investing in climate-resilient infrastructure, early warning systems, and sustainable production practices.
• Collaboration and knowledge sharing: Strengthening public and private partnerships to enhance preparedness and response mechanisms.
• Workforce empowerment: Implementing programmes to ensure workforce safety and maintain operational continuity during disruptions.
• Expanding access to insurance: Advocating for flood insurance tailored to small and medium-sized businesses to bridge the financial gap.

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Moving toward a resilient future

Flooding poses a significant threat to Sri Lanka’s fashion and apparel sector, particularly to the MSMEs operating around the BFTZ. Addressing these challenges requires collective action such as investing in resilient infrastructure, fostering collaboration, expanding insurance access, and safeguarding workforce well-being.

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SLYCAN Trust’s workshop underscored the importance of industry-wide efforts and local community empowerment in strengthening flood resilience. By integrating knowledge-sharing and sustainable practices, the sector can build a more resilient and sustainable future.

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References

1. UNDRR. (2024). Sri Lanka disaster management reference handbook 2024 (ISBN 978-1-955429-58-0). https://www.preventionweb.net/publication/sri-lanka-disaster-management-reference-handbook-2024

2. Nagamuthu, P. (2023). Rainfall Based Dynamic Flood Inundation Simulation for Kelani River Basin of Sri Lanka. Journal of Geology, Geography and Geoecology, 32(3), 560-568. 

3.  Hydrology and Disaster Management Division, Irrigation Department. (2016). Inundation area map of Kelani River basin in May 2016. Retrieved from https://www.irrigation.gov.lk/web/images/FloodMapDetails/KELANI/1_Kelani_Flood_May_2016