The Hon. Major General (Rtd.) Aruna Jayasekera - Deputy Minister of Defence

¶ 01 Hon. Presiding Member, together with the clarifications provided by the Hon. Member, I will respond to the question raised.

¶ 02 Following the recent “FOO” cyclone, the National Council for Disaster Management convened several times and took special note and action in this regard. As necessary, from ground to national level, circulars were issued and, as the Hon. Member highlighted, relief has been provided to the people affected and damaged.

¶ 03 Our Ministry, under the Disaster Management Centre’s procedures, has taken the required actions with special attention.

¶ 04 With respect to houses that suffered total and partial damage, your question specifically sought the arrangement for compensation payments. Under Budget Circular No. 08/2025 and the guideline issued by the Ministry of Defence’s Disaster Management Division on 6 January 2025, the procedure for compensation payments for houses with partial and total damage due to the disaster has been set out.

¶ 05 Accordingly, for families displaced from residences by landslides and floods caused by the “Di…” cyclone, compensation is being provided under defined modalities. From last December, allocations have been released to District Secretaries to commence disbursement. We have clearly informed District Secretaries of this. They, together with Divisional Secretaries, based on information from Grama Niladharis, will arrange monthly payments once rental accommodation is found.

¶ 06 District Secretaries are currently identifying State lands. A summary with details of the lands identified is being prepared; I table it. You too can review it and inform your constituents accordingly. The relevant guideline with instructions has been issued.

¶ 07 For rebuilding houses or damaged business premises, an agreement document has been prepared and forwarded to District Secretaries for confirmation. Based on valuations of the damaged site and structure, benefits will be provided. For disaster-resilient construction of houses, the National Building Research Organisation (NBRO) is providing technical support and oversight as part of its mandate, including for subsequent assessment work. From the date construction commences, a period of seven days for specific approvals is provided under the agreement.

¶ 08 On the second question, regarding relief for affected businesses and the expected timeframe: for micro, small and medium enterprises (MSMEs) to restart operations, with effect from 1 January this year, a working capital loan scheme at a 3 percent annual interest rate has been introduced through three State banks—Bank of Ceylon, People’s Bank, and Regional Development Bank—having been announced on 16 December 2025. Large-scale enterprises are also eligible for working capital under this scheme. The total allocation for this loan scheme is Rs. 10,000 million. We are also taking steps to operationalize the scheme through other willing banks and institutions. The initial recommendation will be by the Grama Niladhari of the area where the enterprise is located and the final recommendation by the relevant Divisional Secretary. It must be confirmed that the enterprise was operational during the period of the “BOO” cyclone and was impacted by it.

¶ 09 For MSMEs classified by banks as non-performing under the existing loan scheme, loans have been provided by year-end 2025 under the loan programmes implemented by the Ministry of Finance, Economic Stabilization and National Policies, upon recommendation of the Ministry of Industries and Enterprise Development. For those registered under the Ministry of Industries and Enterprise Development who could not obtain loans, further steps are being taken this year to provide such loans.

¶ 10 On the third question, regarding insurance compensation and loan relief: licensed commercial banks and licensed specialized banks, under instructions of the Central Bank of Sri Lanka, will grant moratoria of three to six months on loan repayments to individuals and businesses directly affected by the disaster, disregarding other prior conditions. Charges for cheque returns, payment stops, late payment fees, restructuring/ modification fees, and penal interest are suspended up to 31 January 2026. The Central Bank has also instructed that, case by case, credit facilities be provided to affected individuals and businesses.

¶ 11 I table Circular No. 04 of 2025 at this stage for the information of the House. Thank you.

¶ 12 Document placed in the Library.