2025-12-19
News Categories : Committee News
The Committee on Public Finance (CoPF) considered and approved a supplementary estimate of Rs. 500 billion to restore the livelihoods of those affected by the sudden disaster. Accordingly, the supplementary estimate is scheduled for approval in Parliament today (Dec. 19).
The above approval was granted yesterday (18) at a meeting of the Committee on Public Finance held under the chairmanship of Dr. Harsha de Silva, Hon. Member of Parliament.
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 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. 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 meeting was attended by Hon. Deputy Ministers Dr. (Ms.) Kaushalya Ariyarathne and Nishantha Jayaweera, Hon. Members of Parliament and Committee Members Ravi Karunanayake, Harshana Rajakaruna, Wijesiri Basnayake, Thilina Samarakoon, Rauff Hakeem, Attorney-at-Law, as well as Chithral Fernando, Attorney-at-Law.
2025-12-19
The attention of the Sectoral Oversight Committee on Economic Development and International Relations was drawn to the Microfinance and Credit Regulatory Authority Bill and the proposed amendments thereto.This was looked into when the Committee met in Parliament yesterday (Dec. 18), under the chairmanship of Hon. Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law). A group of officials representing the Central Bank of Sri Lanka, the Department of Development Finance of the Ministry of Finance, Planning and Economic Development, and the Legal Draftsman's Department participated in the meeting.The Microfinance and Credit Regulatory Authority Bill was presented to Parliament for its First Reading on 26.11.2025. Accordingly, the Committee held an extensive discussion on the amendments that have been proposed to the Bill. The Chair of the Committee, Hon. Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law) stated that it is important to give careful and further consideration to this Bill and that discussions on the proposed amendments will be held again on a future date.Hon. Members of Parliament Lakshman Nipuna Arachchi, Thilina Samarakoon, Nilanthi Kottahachchi, Attorney at Law, Sagarika Athauda, Attorney at Law, Suranga Ratnayaka, and Wijesiri Basnayake also participated in this Committee meeting.
2025-12-16
The estimated loss incurred by the Ceylon Electricity Board is approximately Rs.20 billion Officials of the Ministry of Transport and Highways and Urban Development stated that, due to the destruction of roads and bridges caused by the disaster situation that occurred across the island, it has been preliminarily estimated that the Road Development Authority has incurred a loss of approximately Rs. 75 billion.Furthermore, the officials stated that when taking into account the additional rehabilitation work required to fully restore the destroyed roads and bridges, it has been estimated that a sum of approximately Rs. 190 billion will be required for this purpose.This was disclosed at the meeting of the Sectoral Oversight Committee on Infrastructure and Strategic Development, convened to discuss and analyses the nature of the disaster that the country has been struck with and the measures to be taken to assess the resulting social, economic, and environmental damage. The meeting was held recently (Dec. 11) at Parliament under the chairmanship of Hon. Member of Parliament S.M. Marikkar.During the meeting, officials of the Ministry of Transport and Highways and Urban Development pointed out that, as a result of the disaster situation, 316 roads and 40 bridges under the purview of the Road Development Authority have been damaged. However, the Chair of the Committee pointed out that assessments regarding damage to railway lines and regional roads across the island have not yet been carried out. The Chair further emphasized the importance of the Ministry taking the lead in formulating a mechanism to provide financial allocations for the rehabilitation of regional roads.Accordingly, the officials informed the Committee that it is currently expected to obtain a loan of Rs. 2 billion from the World Bank, and that funds required to carry out these rehabilitation works are also expected to be obtained from several other institutions.Meanwhile, officials of the Ceylon Electricity Board informed the Committee that the Board has incurred an estimated loss of approximately Rs. 20 billion due to the disaster situation. They further stated that discussions are underway to obtain a loan from the World Bank for this purpose. Commenting on this, the Chair of the Committee advised the officials of the Ceylon Electricity Board to attempt to obtain these funds as a grant rather than as a loan. He emphasized the importance of securing the funds as a grant, as obtaining them as a loan could result in an increase in electricity bills for consumers.In addition, officials informed the Committee that Lanka Electricity Company (Pvt) Ltd. has incurred an estimated loss of approximately Rs. 252 million due to the disaster situation. Officials representing Lanka Electricity Company (Pvt) Ltd. further stated that since the expenditure required for the repair work can be covered through the budgetary allocations already provided to them, no additional loan or grant is required.Officials also informed the Committee that the National Water Supply and Drainage Board has incurred an estimated loss of approximately Rs. 5.6 billion due to the disaster situation. The Secretary of the Ministry of Housing, Construction and Water Supply stated to the Committee that 156 water supply schemes of the National Water Supply and Drainage Board were damaged, and that all of them have now been restored after carrying out maintenance work. The Secretary further informed the Committee that arrangements are currently underway to obtain the funds required for rehabilitation as a grant from the Asian Development Bank.Accordingly, emphasizing the importance of preparing plans to face potential future disasters, the Chairman of the Committee stated that the Sectoral Oversight Committee on Infrastructure and Strategic Development is prepared to provide the necessary support to the relevant ministries and officials for this purpose.Members of Parliament Nalin Bandara Jayamaha, Ajith P. Perera, and Asitha Niroshana Egoda Vithana, along with a group of officials, were present at this occasion.
2025-12-09
Annual reports and financial reports of several universities and higher education institutions coming under the Ministry of Education, Higher Education and Vocational Education were considered at the Sectoral Oversight Committee on Education, Manpower and Human Capital.This was taken into consideration when the Committee met recently (Nov. 26) at Parliament under the Chairmanship of Hon. Member of Parliament Hesha Withanage.Accordingly, at the meeting of the Committee held, the Annual Reports of the Sri Lanka Maritime University for the years 2022 and 2023, the Annual Reports of the Sri Lanka Institute of Advanced Technological Education for the years 2022 and 2023, the Annual Reports of The Open University of Sri Lanka for the years 2022 and 2023, the Annual Reports of the University of the Visual and Performing Arts for the years 2022 and 2023, and the Annual Report and Accounts Report of the Postgraduate Institute of English of The Open University of Sri Lanka for the year 2023 were considered and approved.Further, matters relating to the recruitment of Development Officers serving in schools to the Teacher Service, as well as issues concerning the recruitment of Principals, were also discussed at the Committee.Hon. Leader of the Opposition Sajith Premadasa, Hon. Members of Parliament (Dr.) V.S. Radhakrishnan, Rohini Kumari Wijerathna, Aboobucker Athambawa, Thurairasa Ravikaran, and Sunil Rajapaksha, along with a group of officials, were among those who participated on this occasion.
2025-12-09
A special Committee meeting to consider Regulations under Section 71 of the Value Added Tax Act, No. 14 of 2002The Committee on Public Finance (COPF) which met on 03 December 2025, considered several important matters, including the regulations issued under the National Medicines Regulatory Authority Act, No. 05 of 2015, published in Gazette Extraordinary No. 2452/39 of 04 September 2025, the Annual Work Programme for 2026 of the National Audit Office, and the Final Report prepared under Standing Order 121(5)(ii) on the Appropriation Bill for the financial year 2026. The meeting was held under the chairmanship of Dr. Harsha de Silva, Hon. Member of Parliament.During the discussion on the NMRA regulations, the Committee recommended enhancing system transparency and visibility in the medicine registration process. Accordingly, the Regulations under the National Medicines Regulatory Authority Act, No. 05 of 2015 published in the Gazette Extraordinary No. 2452/39 was approved by the Committee following consideration.The Committee also considered the 2026 Annual Work Programme of the National Audit Office. According to the Programme, 3,508 audits will be carried out in 2026. These include 3,484 Financial Audits, 11 Performance Audits, 1 Environmental Audit, 12 Special AuditsAs presented, audits of Samurdhi Community-Based Banks and Samurdhi Community-Based Bank Societies have been newly assigned to the Auditor General from 2026 onwards. The Committee raised concerns regarding the staff capacity required to carry out the Samurdhi audits. The acting Auditor General stated that an additional 10%–15% staff would be required beyond the current cadre. He further informed the Committee that pilot audits are being conducted through regional offices and will continue until the end of February, after which the actual capacity requirements whether through recruitment or outsourcing will be determined.It was further noted that the annual work Programme will be forwarded to Parliament, as provided for in the Audit Act, which requires that any review or recommendation be submitted to the Speaker and the relevant authorities. Followed by extensive discussion, the Committee agreed to make an observation to the Speaker that it supports the possible outsourcing of the additional Samurdhi-related audit work, subject to the Auditor General’s evaluation. Accordingly, the Committee directed the National Audit Office to do a pilot project and report back to the Committee by the end of February 2026.In addition, COPF deliberated on the Final Report prepared under Standing Order 121(5)(ii) relating to the Appropriation Bill for the financial year 2026. The report reflected the Committee’s observations and recommendations following its review of ministerial budget proposals and financial allocations for the upcoming year.In extension, the Committee on Public Finance, under the Chairmanship of Dr. Harsha de Silva, Hon. Member of Parliament also conducted a special meeting today, 05th December 2025 to consider the Resolution for the provision of allocations for restoration of the disrupted lives of the people affected by the emergency disaster situation through a supplementary estimate. This resolves that, an additional sum not exceeding Rupees Fifty Thousand Million (Rs. 50,000,000,000) shall be payable out of the Consolidated Fund of the Democratic Socialist Republic of Sri Lanka or any other fund or finances possessed by the Government or any loan obtained by the Government at the discretion of the Democratic Socialist Republic of Sri Lanka, for the services of the financial year commencing on January 01, 2025 and ending on December 31, 2025 and the manner that, the said sum may be expended.Moreover, Regulations under Section 71 of the Value Added Tax Act, No. 14 of 2002 published in the Gazette Extraordinary No. 2460/44 which was also approved following consideration. Hon. Members of Parliament who are Members of the Committee on Public Finance were present at these Committee meetings held.
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