CoPF approves supplementary estimate of Rs. 500 billion

The Committee on Public Finance (CoPF) has approved a supplementary estimate of Rs. 500 billion to restore the livelihoods of those affected by the sudden disaster, the Department of Communication of Parliament said in a statement.

Accordingly, the supplementary estimate is scheduled for approval in Parliament today (19).

The above approval was granted yesterday (18) at a meeting of the Committee on Public Finance held under the chairmanship of Member of Parliament Dr. Harsha de Silva. 

Accordingly, the officials present stated that although the Appropriation Bill for the year 2026 (Budget) was passed in Parliament on December 5, the recent disaster situation has necessitated the mobilization of additional funds beyond the amounts approved under the Budget. 

Accordingly, an estimated supplementary sum of Rs. 500 billion has been proposed to support and empower affected communities and to restore and strengthen essential infrastructure, the statement said. 

According to the statement, the proposed supplementary estimate comprises allocations of 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 for affected communities.

The Committee observed that the supplementary estimate results in the primary expenditure for 2026 rising about 1.5% of GDP above the 13% of GDP ceiling imposed by the Public Finance Management (PFM) Act. 

Under the PFM Act such a breach of the ceiling is permitted under Section 16 in case of “unforeseen and unavoidable circumstances such as major economic downturn, severe external shocks, natural disaster, emergence of major contingent liabilities or any such other eventuality in the opinion of the Cabinet of Ministers.” 

Under Section 16 and Section 26, which covers supplementary estimates, the Ministry of Finance has submitted documents that provide the necessary explanations and justifications, including an updated medium term fiscal framework (MTFF).  

When inquired into the implications of this expenditure on the Public Financial Management Act, officials explained that while there is a mandatory requirement not to exceed the primary expenditure ceiling of 13 percent of GDP, the Act provides for exemptions in situations involving a disaster or national crisis.

The Committee also inquired into the selection of beneficiaries of such funds. Officials stated that the National Building Research Institute (NBRO) has identified 15,000 houses, and that a plan has been in place since 2017, although progress has been slow, the statement added. 

Officials further stated that the 2026 Budget has allocated Rs. 5,000 billion to construct approximately 3,000 houses that have already been identified. 

In addition, funds will be allocated for restoration and relocation purposes. The Committee emphasized that accurate data should be acquired and a proper plan should be in place to support those who have actually been affected by the disaster.

Moreover, the Committee urged the need for the Rebuilding Sri Lanka Fund to be formally established as a statutory fund with Parliamentary approval without further delay to ensure that the funds are utilized in an accountable and transparent manner.

Following an in-depth discussion, the Committee approved the supplementary sum of Rs. 500 billion to restore the livelihoods of those affected by the sudden disaster situation, the statement confirmed. 

The meeting was attended by Deputy Ministers Dr. (Ms.) Kaushalya Ariyarathne and Nishantha Jayaweera, Members of Parliament and Committee Members Ravi Karunanayake, Harshana Rajakaruna, Wijesiri Basnayake, Thilina Samarakoon, Rauff Hakeem, Attorney-at-Law, as well as Attorney-at-Law, Chithral Fernando.