The Hon. (Dr.) Anil Jayantha – Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 On behalf of the Minister of Finance and Planning, I make the following Statement regarding amendments to the Appropriation Bill, 2026, in conformity with revised ministerial subjects.

¶ 02 Hon. Speaker, Hon. Harsha de Silva raised a matter yesterday regarding Head 6 in the Appropriation Bill. Under the Ministerial Notifications, I present a few points.

¶ 03 Pursuant to Extraordinary Gazette No. 2458/65 dated 18.10.2025, ministerial subjects were changed. This requires aligning the estimates accordingly. This is not the first time subjects have changed after the Annual Appropriation Bill is presented to Parliament; such revisions occur from time to time.

¶ 04 In summary, consequential changes include:

¶ 05 1. Establishment of a new Ministry: - A new Ministry has been created for Ports and Civil Aviation, which were previously subjects under the Ministry of Transport, Highways, Ports and Civil Aviation.

¶ 06 2. Renaming of Ministries: - The former Ministry of Urban Development, Construction and Housing has been renamed as the Ministry of Housing, Construction and Water Resources. - The former Ministry of Transport, Highways, Ports and Civil Aviation is now the Ministry of Transport, Highways and Urban Development.

¶ 07 3. Reallocation of subjects between Ministries: - The subject of Urban Development is removed from the Ministry of Urban Development, Construction and Housing. - From the Ministry of Transport, Highways, Ports and Civil Aviation, the subjects of Ports and Civil Aviation are removed, and Urban Development is added.

¶ 08 4. Reclassification of Departments under Ministries: - Head 336 – Office of the Registrar of Merchant Shipping: moved from Transport, Highways, Ports and Civil Aviation to the new Ministry of Ports and Civil Aviation. - Head 311 – Department of National Physical Planning: moved from Urban Development, Construction and Housing to the Ministry of Transport, Highways and Urban Development. - Head 320 – Department of Civil Security: moved from the Ministry of Defence to the Ministry of Public Security and Parliamentary Affairs. - Head 337 – Department of Cinnamon Development: moved from the Ministry of Plantation and Rural Infrastructure to the Ministry of Agriculture, Livestock, Lands and Irrigation.

¶ 09 5. State institutions reassigned: - Institutions reassigned to other Ministries are listed in Annex 01. Some are commercial and do not receive Treasury funding; others are new institutions created through recent legislation.

¶ 10 Consequential changes to Estimates and the Appropriation framework:

¶ 11 (a) For 2025, to operationalize these subject changes within the current year, administrative instructions will be issued on the utilization of 2025 allocations. When substantial changes occur mid-year, the Appropriation Act may be amended; however, where changes are not significant, directions are issued under Financial Regulation 208 to transfer residual provisions to the relevant spending units, as guided by Budget Circular 03/2024.

¶ 12 Importantly, the total expenditure under the 2025 Appropriation is unchanged. The technical reallocation occurs within the existing framework. The number of Ministries has not been increased in a manner contrary to the Constitution; adjustments are within existing limits.

¶ 13 (b) For 2026, required amendments to the Appropriation Bill will be moved at the Committee Stage. A specimen is at Annex 02.

¶ 14 Regarding Head 176: Before we formed Government, Head 176 referred to the then Ministry of Ports and Shipping. After Government formation, such a standalone Ministry did not exist; therefore, Head 176 was not allocated in the 2026 Bill as presented. At Committee Stage, Head 176 may be used for the newly established Ministry as necessary.

¶ 15 Annexes 01 and 02 are tabled.