Post-tsunami reconstruction in Sri Lanka: assessing the economic impact

Les Ruddock, Dilanthi Amaratunga, Nadeeshani Wanigaratne, Roshani Sandika Palliyaguru

    Research output: Contribution to journalArticle

    Abstract

    The “construction output shock” that was generated by the massive reconstruction programmes after the Indian Ocean tsunami in Sri Lanka spread through the economic system and was reflected in economic indicators due to the multiple linkages that the construction industry has with other economic sectors. On the ground, it was observed that the prices of construction materials, labour and plant rose suddenly in the affected regions making the reconstruction effort more costly. This paper considers the responses of major economic and construction indicators to the construction shock due to post-tsunami reconstruction and the amount of time needed before they returned to an equilibrium state. Empirical results indicate that the construction output shock had a significant impact on material, labour and equipment price indices in the short run but other indicators showed only a very marginal response indicating that the remoteness of the disaster would have delayed the propagation.

    Original languageEnglish
    Pages (from-to)217-230
    JournalInternational Journal of Strategic Property Management
    Volume14
    Issue number3
    DOIs
    Publication statusPublished - 2010

    Fingerprint

    Tsunami
    Economic impact
    Sri Lanka
    Labor
    Construction industry
    Economics
    Empirical results
    Propagation
    Indian Ocean
    Economic indicators
    Short-run
    Economic systems
    Disaster
    Economic sectors
    Linkage
    Price index

    Keywords

    • Disaster reconstruction
    • Construction shocks
    • Economic indicators
    • Sri Lanka

    Cite this

    Ruddock, Les ; Amaratunga, Dilanthi ; Wanigaratne, Nadeeshani ; Palliyaguru, Roshani Sandika. / Post-tsunami reconstruction in Sri Lanka: assessing the economic impact. In: International Journal of Strategic Property Management. 2010 ; Vol. 14, No. 3. pp. 217-230.
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    Post-tsunami reconstruction in Sri Lanka: assessing the economic impact. / Ruddock, Les ; Amaratunga, Dilanthi; Wanigaratne, Nadeeshani; Palliyaguru, Roshani Sandika.

    In: International Journal of Strategic Property Management, Vol. 14, No. 3, 2010, p. 217-230.

    Research output: Contribution to journalArticle

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    AU - Ruddock, Les

    AU - Amaratunga, Dilanthi

    AU - Wanigaratne, Nadeeshani

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    AB - The “construction output shock” that was generated by the massive reconstruction programmes after the Indian Ocean tsunami in Sri Lanka spread through the economic system and was reflected in economic indicators due to the multiple linkages that the construction industry has with other economic sectors. On the ground, it was observed that the prices of construction materials, labour and plant rose suddenly in the affected regions making the reconstruction effort more costly. This paper considers the responses of major economic and construction indicators to the construction shock due to post-tsunami reconstruction and the amount of time needed before they returned to an equilibrium state. Empirical results indicate that the construction output shock had a significant impact on material, labour and equipment price indices in the short run but other indicators showed only a very marginal response indicating that the remoteness of the disaster would have delayed the propagation.

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