Sri Lanka will procees with a Rs. 500 billion supplementary estimate

Sri Lanka will proceed with a Rs. 500 billion supplementary estimate for post-Cyclone Ditwah recovery without increasing public debt or breaching borrowing limits, President and Finance Minister Anura Kumara Dissanayake told Parliament yesterday.

Rejecting claims that the additional spending would trigger an economic crisis in 2026, he said the allocation was made possible by the country’s strongest fiscal performance on record, including a Treasury surplus of Rs. 1.2 trillion and a primary surplus of 3.8% of GDP in 2025.

To manage balance-of-payments risks, the Government has requested $200 million under the IMF’s Rapid Financing Facility and expects further support from the World Bank and Asian Development Bank. Total recovery financing is expected to reach nearly Rs. 700 billion.

The President said spending would be carefully sequenced to avoid inflationary pressures, while relief measures would prioritise affected households, businesses, and farmers as Sri Lanka continues its post-crisis recovery

 

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