Besides the tremendous loss of life and injuries caused, the tsunami also resulted in extensive damage to property and greatly disrupted livelihoods activities in the affected areas. The government has projected it would take 3-5 years and cost approximately US$ 2.2 billion to complete the rehabilitation and reconstruction task, and fully restore the services and livelihoods.

UNDP's role in the post-tsunami recovery process: The UNDP Post Tsunami Recovery Programme assists Sri Lanka's efforts to recover from the tsunami through a cohesive integrated response to address the needs of affected communities using new initiatives as well as the identification of synergies and opportunities in programmes that UNDP is already undertaking within the country. In the context of the Post-Tsunami recovery programme, UNDP mobilized approximately US$30 million of which, US$ 18.7 million was provided by various donors against the UN Consolidated Flash Appeal.

The Programme broadly focuses on supporting post-tsunami recovery in the three principal UNDP thematic areas viz. Poverty Reduction (through the various infrastructure reconstruction and livelihood regeneration projects), Governance and Capacity Building (by supporting capacity development of the public sector, civil society and promoting the adoption of a Human Rights based approach to recovery) and the Environment (through a portfolio of Disaster Risk Management and Mitigation projects). Moreover, the projects have been designed in close consultation and with the cooperation of the government, which has ensured that the recovery programme is closely aligned both with the overall government blueprint for post-tsunami recovery and also its longer term overall national development strategy.

UNDP had the advantage of an extensive local network of field offices in many tsunami affected areas through its Transition Programme, which enabled it to obtain rapid and comprehensive assessments of actual needs on the ground. The network of field offices has also greatly facilitated the implementation of housing and livelihood recovery initiatives ensuring that the most vulnerable and poorest tsunami victims in affected districts are being reached.

The UNDP Post Tsunami Recovery Programme can be broadly categorized into two key phases, the initial relief phase, where the emphasis was on coordination of the aid effort and the provision of income to those who lost their source of livelihood, and the ongoing recovery phase, where the more substantive projects targeting the key areas mentioned above are being implemented.