The Committee on Public Finance (CoPF) has approved a supplementary estimate of Rs. 500 billion to restore the livelihoods of those affected by the recent disaster, the Parliamentary Department of Communication said in a statement.
The supplementary estimate is scheduled to be presented to Parliament for approval today (19). The approval was granted yesterday (18) at a meeting of the CoPF chaired by MP Dr. Harsha de Silva.
Officials informed the Committee that although the Appropriation Bill for 2026 was passed in Parliament on December 5, the sudden disaster situation has made it necessary to mobilise additional funds beyond those allocated in the Budget. Accordingly, a supplementary sum of Rs. 500 billion has been proposed to support affected communities and to restore and strengthen essential infrastructure.
According to the statement, the proposed allocation includes Rs. 100 billion for the renovation of 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 restoration of normal living conditions.
The Committee observed that the supplementary estimate would increase primary expenditure for 2026 by about 1.5 percent of GDP, exceeding the 13 percent ceiling set under the Public Finance Management (PFM) Act. However, officials explained that Section 16 of the Act allows such a deviation in cases of unforeseen and unavoidable circumstances, including natural disasters and national crises.
In line with Sections 16 and 26 of the PFM Act, the Ministry of Finance has submitted the required documents, including explanations, justifications and an updated Medium-Term Fiscal Framework (MTFF), officials said.
When questioned on the impact of the additional expenditure on fiscal discipline, officials reiterated that while the Act mandates adherence to the primary expenditure ceiling, exemptions are permitted in disaster situations.
The Committee also raised concerns regarding the selection of beneficiaries. Officials stated that the National Building Research Institute (NBRO) has identified around 15,000 houses requiring attention, noting that a plan has existed since 2017, although progress has been slow. They further said the 2026 Budget has allocated Rs. 5 billion to construct approximately 3,000 houses already identified, with additional funds to be used for restoration and relocation.
The Committee emphasised the need for accurate data and a clear plan to ensure that assistance reaches those genuinely affected by the disaster. It also urged that the Rebuilding Sri Lanka Fund be formally established as a statutory fund with Parliamentary approval, without further delay, to ensure transparency and accountability in the use of funds.
Following extensive deliberations, the Committee approved the supplementary estimate of Rs. 500 billion. The meeting was attended by Deputy Ministers Dr. Kaushalya Ariyarathne and Nishantha Jayaweera, along with several Members of Parliament and Committee members.
