Colombo, Dec 19: President and Minister of Finance Anura Kumara Dissanayake is set to attend Parliament on Thursday to take part in the debate on a Rs. 500 billion supplementary estimate, approved to address the impact of a recent disaster and restore affected livelihoods.
The Committee on Public Finance (CoPF) has cleared the supplementary allocation, which is scheduled for Parliamentary approval on December 19, citing the need for additional funding despite the 2026 Budget having been passed on December 5.
According to a statement from Parliament’s Department of Communication, the proposed allocation includes Rs. 100 billion for renovating houses destroyed by the disaster, Rs. 250 billion for the restoration and rehabilitation of damaged infrastructure, and Rs. 150 billion to support the rebuilding of livelihoods and the return to normal living conditions in affected areas.
Officials told the Committee that the additional spending would raise primary expenditure for 2026 by about 1.5% of GDP above the 13% ceiling set under the Public Finance Management (PFM) Act. However, they noted that Section 16 of the Act permits such a breach in the event of unforeseen and unavoidable circumstances, including natural disasters or national crises.
The Ministry of Finance has submitted the required documentation to justify the increase, including an updated Medium-Term Fiscal Framework (MTFF).
During deliberations, officials said the National Building Research Institute (NBRO) has identified 15,000 houses affected by the disaster, adding that a mitigation and relocation plan has been in place since 2017, though implementation has been slow. Separately, the 2026 Budget allocates Rs. 5,000 billion for the construction of about 3,000 houses already identified.
The Committee emphasized the importance of accurate data and a transparent beneficiary selection process to ensure assistance reaches those genuinely affected. It also urged the government to formally establish the Rebuilding Sri Lanka Fund as a statutory fund with Parliamentary approval, underscoring the need for accountability and transparency in the use of public funds.
Following extensive discussion, the CoPF approved the Rs. 500 billion supplementary estimate, paving the way for parliamentary consideration later today.
