OTTAWA, December 7, 2009
It was Boxing Day, December 26, 2004.  Propelled by an earthquake deep within the Indian Ocean, a wall of water swept towards unsuspecting residents and vacationers in Indonesia, India, Sri Lanka and other countries. The deadly waves killed more than 220,000 people.  Sri Lanka’s coastal cities and villages were hit hard by the devastating tsunami leaving 35,000 dead and over half a million homeless.
Five years later, the country is emerging from the disaster thanks in part to the efforts of Canadians to re-vitalize the country’s century – old credit union system, a powerful engine for community economic development.  Recovery efforts began with the repair and reconstruction of 300 credit unions and restoration of their lost records. In an ambitious partnership between the Canadian Co-operative Association (CCA) and the Sanasa Development Bank, CCA’s longstanding partner in Sri Lanka, an innovative loans program designed by Canadian credit union experts helped create jobs and micro-businesses for credit union members living in coastal areas.
Trusted in communities throughout the country, Sanasa’s distinctive bluecoloured credit unions set out to design and build homes, wells and sanitary systems. It was dangerous work in remote, rural areas where checkpoints, curfews, landmines and violence were a constant threat. Yet, these credit unions persevered in the recovery work. “This was an epic event within an already challenging environment,” says Jo-Anne Ferguson, CCA’s Senior Director of International Development. “A decades-long civil war with its kidnappings, assassinations, and bombings hampered recovery efforts. And the country was overwhelmed by a second tsunami of international aid that couldn’t be readily handled by government agencies. The tsunami challenged us to develop unique and innovative approaches using the co-operative model of community development.”  The tsunami no longer dominates the news headlines. The war is over and the world has moved on to other events in other places. But the work continues. Many of the 250,000 now in the IDP (internally displaced persons) camps are also tsunami survivors. The Canadian Co-operative Association with funding from the Canadian Red Cross, credit unions and individual Canadians continues to work with SANASA – bringing services to recovering communities and into refugee camps in war - torn northern areas of the country. This too will be slow, difficult work. Canadian co-operatives and credit unions have a long history in Canada. The Canadian approach remains in Sri Lanka today - ready to assist again if another tsunami or other disaster strikes.

       Several hundred Sri Lankan credit unions were washed away in the 2004 tsunami that hit the island.

The distinctive blue credit unions were rebuilt as part of CCA's relief efforts.