Rs. 500 Billion Funding Clash Intensifies Post-Cyclone Recovery Debate
- CNL Reporter
- December 7, 2025
- Political
- Cyclone, Sri Lanka
- 0 Comments
Sri Lanka’s post-cyclone recovery effort has triggered a major debate in Parliament, with Public Finance Committee Chair Harsha de Silva urging the Government to redirect Rs. 500 billion—currently allocated for treasury bill repayments—towards rebuilding flood and landslide-hit regions. He argued the spending can legally exceed the IMF-linked 13% expenditure cap during emergencies and stressed that compensation and infrastructure restoration must take priority over debt retirement.
The President’s relief plan promises household repair assistance, livelihood support, and emergency clean-up funding. However, early damage estimates ranging from $3–6 billion indicate the actual reconstruction bill may far exceed current allocations. De Silva said Rs. 50 billion remains unused from the 2025 Budget and urged immediate deployment for relief.
He further warned that MSME debt could rise beyond Rs. 1 trillion, calling for stronger financial support. Concerns remain over whether the Government’s allocations are sufficient to restore normalcy.
