Hon. (Dr.) Harsha de Silva

¶ 01 Thank you, Mr. Chairman.

¶ 02 First, our deepest sympathies to all affected. I will be brief.

¶ 03 The Government was unable to spend the full 2025 Budget; hence there are savings. Around Rs. 30 billion is in the Treasury that can be used immediately for house and road cleaning, etc. Another Rs. 20 billion can be sourced elsewhere—totaling about Rs. 50 billion for the next four weeks. Therefore, there is no excuse to delay payments. Implement the circulars efficiently. At least Rs. 50,000 could be paid, not merely Rs. 25,000—given inflation, Rs. 25,000 is inadequate. Find the money and pay.

¶ 04 The core challenge is 2026. Under the Public Financial Management Act, with the IMF programme, there is a 13% cap on primary expenditure. However, Sections 14(2) and 14(2)(4) allow exceptions. Therefore, even with the IMF programme, Parliament can authorize higher spending next year for reconstruction—say Rs. 300–500 billion—without legal impediment.

¶ 05 When I earlier said the Treasury was “overflowing,” I meant unexpected revenues—especially from taxes and vehicles—are sitting in the Treasury. I also said those funds must be spent appropriately. Now the Treasury has money. Use it.

¶ 06 Loss and damage assessments vary—US$ 3 billion to US$ 6 billion. The World Bank has been commissioned to deliver an assessment within two weeks. If cash is urgently needed, the new Central Bank Act has provisions to assist in disasters. There should be no liquidity constraint. The Deputy Minister said Rs. 500 billion will be used next year to retire T-bills. I say: spend that to help the suffering people now; roll over the bills for a year or two.

¶ 07 MSME loans total around Rs. 900 billion and may surpass a trillion. We hear of parate executions even at camps. Please suspend parate. Use Rs. 500 billion to create a fund exclusively for MSMEs—the backbone of our economy.

¶ 08 Regarding the “Rebuilding Sri Lanka” fund: under Article 148 of the Constitution, all public revenue and expenditure are under Parliament. Funds must be either the Consolidated Fund, the President’s Fund, or a statutory fund authorized by law. Under the PFM Act, ad hoc funds are not permitted; otherwise they lapse. Reports indicate only that accounts under the Deputy Secretary to the Treasury and the Central Bank Governor exist; there is no legally established fund. If you wish to create one, bring it to Parliament. The Public Finance Committee can meet even tomorrow to clear necessary amendments. Ensure it is constitutional and auditable.

¶ 09 We also have the Contingency Fund. Mobilize all legal channels to collect and spend responsibly. Every cent received and spent is answerable to Parliament.

¶ 10 We must also amend the Budget by Resolution, because circumstances have changed. Prioritize correctly. Some paddy lands will need complete restoration—buried under rocks and sand. This is not just receding floodwater. With limited public money, spend for public welfare; let the private sector and investors handle what they can.

¶ 11 On SOEs: reconsider reversing CEB reforms. We approved Rs. 100 billion to SriLankan Airlines; another US$ 200 million is due. SriLankan’s cumulative losses are about Rs. 700 billion—equal to the education allocation. Clarify your policy: continue prior reforms or pursue an industrial policy—with coherence. Resolve this internally for the country’s sake.

¶ 12 Thank you.