Opposition MP Harsha de Silva told Parliament today that the government already has substantial fiscal space to assist communities hit by Cyclone Ditwah, insisting there is “no excuse” for delays in relief and cleanup operations.
He said the government currently has LKR 30 billion allocated for recurrent expenses and another LKR 20 billion that can be reallocated, providing a total of LKR 50 billion that can be deployed immediately for disaster response.
De Silva also noted that early assessments indicate Sri Lanka’s total economic losses could reach USD 3 billion or more. A detailed evaluation is expected from the World Bank.
He said the 2026 budget cap under the Public Finance Management Act allows adjustments under extraordinary circumstances, adding that Parliament could consider raising the capital expenditure limit from 13 percent of GDP to around 14–14.5 percent to accommodate urgent reconstruction needs.
According to him, the Treasury has over LKR 1.2 trillion in cash that can be used right away, and the planned retirement of LKR 500 billion in Treasury bills next year could be postponed by a year to prioritise recovery spending.
Meanwhile, Sri Lankan authorities said Wednesday they may require nearly USD 7 billion to rebuild homes, industries and damaged transportation networks. At least 470 people have died following the cyclone, while hope has faded for more than 360 others still missing after floods and mudslides.
Prabath Chandrakeerthi, Commissioner-General of Essential Services, said the figure is a preliminary estimate and could shift once full reconstruction assessments are completed. (Newswire)