The Hon. Anura Kumara Dissanayake - President, Minister of Defence, Minister of Finance, Planning and Economic Development and Minister of Digital Economy

¶ 01 Hon. Deputy Speaker, we are presenting the largest Supplementary Estimate in recent history. On 05 December, we passed the 2026 Appropriation after a lengthy debate. Yet within a short time, we must present another Rs. 500 billion Supplementary Estimate to reactivate people’s lives and give oxygen to the economy after this disaster. I believe all in this House accept that necessity.

¶ 02 I notice commentary outside suggesting that because of this Rs. 500 billion, the economy will collapse by April. I thank Hon. Harsha de Silva, who has publicly stated the Government has the resources to allocate for these provisions and also emphasized focusing more on people.

¶ 03 Let me clarify to dispel anxieties that such a large Supplementary Estimate threatens the economy. Some say the economy will collapse by April. I also heard there was an internal discussion in your party claiming the same.

¶ 04 Hon. Ravi Karunanayake: I was not invited.

¶ 05 We are a Government that has worked with fiscal discipline and targets. By several important indicators, 2025 is a year of significant gains.

¶ 06 First, the Treasury account. For years it ran an overdraft, at times paying 30–33 percent interest. The overdraft was Rs. 180 billion in 2018; Rs. 274 billion in 2019; Rs. 575 billion in 2020; and Rs. 821 billion in 2021. Under our Government, by November 2025, the Treasury account has a positive balance of Rs. 1,202 billion—a swing of about Rs. 2 trillion. Without such a buffer, we could not propose this Rs. 500 billion today without resorting to other measures.

¶ 07 Second, revenue. In 2007, revenue was 16.6 percent of GDP. In 2025 we project 15.9 percent—our highest since 2007. We need that fiscal capacity.

¶ 08 Third, the Budget deficit. The lowest since 1977—when it was 4.5 percent—has now been recorded again in 2025 after decades. Some years it was above 10 percent; in 2013–2014 it also ran high. This year we have brought it back near that 4.5 percent mark.

¶ 09 Fourth, targets. For the first time in our Budget history, actual revenue has exceeded estimates. We estimated Rs. 4,960 billion; by 15 December we had collected Rs. 5,125 billion.

¶ 10 On the borrowing limit: typically, after presenting the Budget, borrowing limits are increased. We have not. For 2026 we estimated a Rs. 3,800 billion borrowing limit; through Budget measures we have reduced new borrowing by Rs. 60 billion; our current limit is Rs. 3,740 billion. This Supplementary Estimate will be accommodated without raising the borrowing limit.

¶ 11 On the primary balance: since 1950, Sri Lanka has had a primary surplus only six times up to 2024, and each was below 1 percent. This year, for the first time, we record a primary surplus of 3.8 percent. Remittances are at a historic high; tourism receipts are set to surpass 2018’s US$3.8 billion; and total goods and services exports are projected near US$18 billion. These outcomes reflect disciplined fiscal management with clear targets.

¶ 12 Our economy has been fragile—small missteps caused outsized harm. Over the last 14–15 months we have carefully stabilized it. The current shock—on the economy, on people, and on our ecosystems—arrives while we are stabilizing. Managing this shock requires delicate interventions. Injecting Rs. 500 billion will have inflation and forex implications; we are not of the view that printing money to stoke demand will self-correct supply. Hence, part of this allocation is to raise production capacity of goods and services to offset inflationary pressure. Every rupee spent has a dollar component—fuel, imports, construction inputs—so we must also secure incremental foreign exchange.

¶ 13 Therefore, we have requested a rapid US$200 million support from the IMF; we also expect support from the World Bank and ADB. We will mobilize at least US$500 million more than planned for 2026 to buffer exchange rate pressures. The two key risks are inflation and the exchange rate; our deployment of funds is designed accordingly.

¶ 14 Our relief and recovery package:

¶ 15 1) Immediate household relief - Rs. 25,000 per affected household to clean and make homes usable. This is administered by officials—Grama Niladhari-led teams—without political signatures. Where genuine grievances arise, elected representatives may flag for review, but decisions rest with the administration. Around 65 percent of eligible households have received this already; some districts are near 90–100 percent; remaining areas are being processed. - Rs. 50,000 per household for basic household items if the dwelling was damaged and essential cooking and living implements were lost. This is policy-based, not ad hoc; verification is by officials.

¶ 16 2) Income support for displaced families We categorize three groups: - Fully damaged houses; - Partially damaged houses where NBRO prohibits re-occupation; - Undamaged houses where NBRO still declares the site unsafe.

¶ 17 Totals currently recorded: 6,228 fully damaged; 4,543 partially damaged but NBRO-prohibited; 6,877 undamaged but NBRO-prohibited; in all, 17,648 households. Each of these will receive Rs. 50,000 per month for three months starting January to sustain living while displaced. Additionally, a rent allowance of Rs. 25,000 per month will be provided to secure temporary accommodation—also applicable if living with relatives.

¶ 18 3) Rapid restoration of agriculture We have directed the Irrigation Department, Provincial Irrigation and the Department of Agrarian Development to expedite repairs to anicuts, minor works and reservoirs to resume Maha cultivation. We will fund all needed minor repairs quickly.

¶ 19 Input support: - Paddy/maize/kurakkan and similar grains: Rs. 150,000 per hectare as a replanting grant (previous support was Rs. 40,000/ha). Fertilizer support continues via bank accounts; by the 15th all lists are to be finalized and disbursement to begin next week. Though costs tally around Rs. 80,000/ha, we intentionally grant Rs. 150,000 to restore confidence and momentum.

¶ 20 - Horticulture/export crops: • Vegetables, banana, chilli, big onion, and Garcinia (goraka): Rs. 200,000 per hectare. • Pepper: around Rs. 250 per vine, with planting material support coordinated by the Department of Export Agriculture for replanting.

¶ 21 4) Livestock support - Registered dairy herds (crossbred): Rs. 200,000 per animal lost, up to 10 animals (cap Rs. 2 million). - Indigenous cattle: Rs. 50,000 per animal lost, up to 20 animals (cap Rs. 1 million). - Pigs, buffaloes, goats: Rs. 20,000 per animal lost, up to 20 animals (cap Rs. 400,000). Registration with the Veterinary Office is essential. Going forward, herds must be reported at least every six months; unregistered herds will pay for veterinary services, while registered herds receive services free. Inter-provincial movement certificates will only be issued to registered farms.

¶ 22 - Poultry: • Layers: Rs. 500 per bird lost, up to 2,000 birds (cap Rs. 1,000,000). • Broilers: Rs. 250 per bird lost, up to 4,000 birds (cap Rs. 1,000,000). • Backyard units (registered via Provincial schemes): Rs. 10,000 per unit, plus free supply of chicks to restart.

¶ 23 5) Fisheries - Marine fisheries: Boats are insured to receive licenses; however, underinsurance leads to inadequate payouts. We will channel insurance proceeds to CENOR (state boatbuilder) which will supply a replacement boat, topping up the gap as needed: e.g., if insurance pays Rs. 2 million against a Rs. 5 million boat, CENOR will add Rs. 3 million and deliver the boat; if Rs. 4 million is paid, CENOR will add Rs. 1 million. - Marine nets and gear: provide vouchers worth Rs. 100,000 (five net pieces at Rs. 20,000 each) redeemable at accredited suppliers via CENOR coordination. CENOR teams will also repair partially damaged vessels free of charge using funds allocated.

¶ 24 - Inland fisheries: For a fully lost canoe, Rs. 100,000 grant to purchase anew; nets up to five per fisher at Rs. 15,000 each (cap Rs. 75,000), based on cooperative society records. Many tanks lost 30–35 percent or more of fingerlings; in some tanks all. We will fund the Ministry to restock affected reservoirs with fingerlings directly, rather than giving cash, so yields recover in coming months.

¶ 25 6) Students - Rs. 25,000 per affected schoolchild: Rs. 10,000 from the President’s Fund and Rs. 15,000 from the Treasury. Since principals cannot always verify (house or school, not both, may be affected), Grama Niladhari data will feed the President’s Fund, which lacks a field network. About 620,000 families are recorded as affected; we will grant Rs. 15,000 per affected child from the State and Rs. 10,000 from the President’s Fund. Aim is to pay before the new school term.

¶ 26 - Existing Samurdhi and Rs. 6,000 education assistance continue unchanged.

¶ 27 7) Micro/small enterprises and commercial buildings - The Ministry of Industries called for registration up to the 10th; 9,600 single-owner, micro and small businesses have registered as affected. Each will receive Rs. 200,000 (Rs. 2 lakhs). Data is consolidated with account numbers; funds will be remitted quickly.

¶ 28 - Commercial buildings: An immediate Rs. 500,000 grant without valuation for any business premises with structural damage. If the owner believes damage exceeds that, they may opt for valuation and receive up to Rs. 5 million accordingly. One cannot both take the Rs. 500,000 and request valuation.

¶ 29 - Unregistered small traders with only local trade licenses (e.g., village stalls, fish stalls) also need help; we will gather data via District and Divisional Secretaries and design a grant—possibly for kiosk/shed replacement or equivalent—to restart. District Secretaries meet tomorrow; after receiving data we will decide quantum.

¶ 30 - Larger enterprises (e.g., shrimp farms): provide concessional working capital loans via banks. For micro/small: Rs. 250,000 to Rs. 1,000,000; for larger: up to Rs. 25 million. Government will on-lend to banks at zero interest; banks will lend to clients charging only a minimal administrative margin (expected 2–3 percent), with a six-month grace period before repayments commence. Banks know client histories and will size loans accordingly.

¶ 31 Regarding stock losses in shops: under our current framework, micro/small businesses receive the Rs. 200,000 grant. For greater losses including inventory, once data is consolidated we will consider additional relief; building repairs are covered by the Rs. 500,000 immediate grant or up to Rs. 5 million with valuation.

¶ 32 Hon. Ravi Karunanayake rightly asked for timelines. We agree: without timeframes, processes can drag. The immediate Rs. 500,000 building grant should resolve about 80 percent quickly; only the remainder needs valuation, otherwise handling 120,000 damaged houses/buildings by valuation would be impossible. Do not expect disbursements by Monday; however, District and Divisional Disaster Management Committees meet frequently—Members should attend those to resolve bottlenecks with the responsible officials instead of seeking ad hoc certifications.

¶ 33 On housing and relocation: - Our initial statement: Rs. 5 million (Rs. 50 lakhs) for those who lost houses fully, plus State land where possible, or up to Rs. 5 million support to purchase land if State land is not available. - But we must expand beyond fully destroyed houses. The three NBRO categories—fully damaged (6,228), partially damaged but NBRO-prohibited (4,543), undamaged but NBRO-prohibited (6,877)—total 17,648. All these families must be moved out of danger zones. This will cost about Rs. 85 billion; we must treat it as essential spending to protect lives. - Additionally, some live in previously-declared high-risk zones that did not fail this time; they too must be moved in phases. For 2026, we have allocated for 2,000 houses at Rs. 2.5 million each and will seek to expand. By 2027 we will legislate to prohibit habitation in high-risk zones and provide the necessary facilities to relocate all.

¶ 34 Where land remains suitable (e.g., parts of Kurunegala), NBRO permits immediate rebuilding; about 2,000 such households with suitable land will receive Rs. 5 million quickly. For the rest—about 15,000 families—we will identify State lands and also consider acquiring private lands with owner consent for resettlement. Until then, the Rs. 25,000 monthly rent for six months will support temporary accommodation.

¶ 35 We have already identified about Rs. 130 billion from the 2026 capital vote to redirect to this effort, in addition to the Rs. 72.5 billion earlier Supplementary and the current Rs. 500 billion, bringing roughly Rs. 700 billion to bear. The World Bank will share an initial assessment on Monday, after which we will align with total damage estimates.

¶ 36 Restoring basic infrastructure: - Roads: RDA, Provincial Roads and Local Authorities have restored access on over 90 percent of routes, some with temporary works, to ensure mobility. - Electricity: CEB has largely restored supply; tragically, one officer died in the process. - Water: NWSDB schemes are restored; Community Water projects largely repaired; wells cleaned with support from the military and volunteers. - Communications: services restored after engagement with operators. - Schools: we aim to reopen remaining closed schools swiftly and are working towards that target.

¶ 37 Finally, beyond immediate recovery, we must implement a medium-term plan to restore the Central Highlands and reduce future natural disaster impacts. We cannot prevent all natural hazards, but we can mitigate their damage.

¶ 38 We have approached this systematically: rescue and relief; temporary shelter and services; livelihoods and productive recovery; and permanent housing with relocation from high-risk zones. The Rs. 500 billion Supplementary Estimate is for the people’s welfare, to restore lives and strengthen the economy while safeguarding stability.