- President’s Address in Parliament during the Third Reading of the 2026 Budget
In particular, today we have presented to Parliament subjects concerning the Ministry of Finance, the supplementary estimate and the regulations introduced for the imposition of a State of Public Emergency under the Public Security Ordinance.
Among all these matters, our principal focus should be directed towards the disaster that we have been compelled to face. Our country has encountered such disasters on many occasions. At times, when the disaster has occurred close to the coastal areas, people living in the hill country and other provinces have been shaken by it. When it has occurred in the central regions, people in other provinces have been distressed. However, on this occasion, apart from a few districts that escaped, a vast majority of the remaining districts have been affected by this disaster. Therefore, the citizens, the people, have set aside their own anguish and engaged themselves in this effort.
We know that there are those who should be living among us today, but whom we have lost due to this disaster. There are people who should now be living closely together with their children and relatives, but whom we no longer have. Entire villages have been affected by this tragedy. Entire families have been affected. Therefore, this disaster is the most severe one we have witnessed in recent times in our country. The hearts of the people are filled with grief. Their emotions are burdened with such pain that it cannot be expressed in tears. Many have died, and their bodies have been found. Some have died and been lost to such an extent that their bodies cannot be recovered.
Our society has a deeply painful history regarding the loss and disappearance of people. The history of our country contains tragic accounts of people lost and disappeared due to war and natural disasters. We know how much suffering the loss of a person causes to their friends and relatives. We are among those who have experienced it. When someone disappears, their parents and loved ones are unwilling to accept it. They live with the hope that the person will return. For many years, citizens have lived with the anguish of those who disappeared. Personally too, I have had such an experience. Disappearance brings immense sorrow to a family, to relatives and to friends. Therefore, at this moment, there are people living in pain, suffering the grief of losing their loved ones. As a nation, our foremost duty is to convey our heartfelt sympathy to all of them.
We cannot restore the lives of those who have been lost. That is the tragic reality. However, as a government and as citizens, we bear a responsibility. Our aim must be to create a state of higher quality than that which existed for those who lived. Therefore, we are prepared to take every measure and work with utmost dedication so that our people will never again face such a destiny, and to build a better nation than before. I believe this is a duty entrusted to us and a responsibility that we cannot abandon.
In any disaster, property and human lives may be lost. Yet this disaster too has proved that the humanity within our people is such a powerful quality that it cannot be taken away by any tragedy. They contribute and make sacrifices to the best of their ability.
Likewise, Sri Lankans overseas are tirelessly collecting funds for the sake of our people, day and night. When the blood bank announced that it was short of 1,500 units, 20,000 units were provided. That is the humanity in our nation which cannot be erased by any disaster.
In world history, the rebuilding of every fallen nation has been led by the determination and courage of its people. During the Second World War, when vast numbers of lives were lost, the unwavering courage, dedication and sacrifice of people paved the way for peace in the world.
In the path towards modern development taken by advancing nations, strategic economic policies were important, but the courageous intervention of their people became the most decisive factor. Japan and China rose in that way. I wish to state that it is the trust and courage of our people that will guide us in rebuilding this country. Likewise, when this disaster occurred, the tri-forces and the police worked with great effort to rescue our people from its effects.
In Kala Wewa, nearly seventy people on a bus waited in fear, not knowing whether they would lose their lives in a matter of minutes. Some Members of Parliament wrote Facebook posts from their homes stating that two or three hours. Yet at that very moment, our navy was engaged in a heroic operation to rescue those people. Under extremely difficult and exhausting conditions, they fought against the fierce flood waters and advanced. As a result, they succeeded in bringing the passengers of that bus onto a roof.
Shortly afterwards, the bus was swept away. At that moment, the boat used by the navy also became inoperable. In the end, the naval officers on that boat too had to survive on the same roof to save their own lives. For more than eighteen hours, under the assault of the heavy storm, nearly seventy people survived on an asbestos roof because of the courage given to them by those three naval officers.
After an extremely difficult effort, the boat that was caught in the initial storm returned again. I am grateful to two young men from that village, who showed them an alternative route instead of the earlier one. By taking that route, they were able to rescue all seventy people safely.
I am grateful to the two young men from that village, who showed an alternative route instead of the earlier one. By taking that route, they were able to rescue all seventy people safely. One person, however, died after being admitted to hospital. We have such an efficient tri-forces and police.
The two boats that went to rescue the group trapped at the farm in Vichikuliya also became inoperable. In the end, they were able to be rescued only at dawn on the following day.
In the Nochchiyagama area, people were trapped in two locations. In the city of Anuradhapura, they were stranded up in trees. In other places, people had climbed coconut trees, trying to save their lives.
Our Air Force too, through extremely courageous and heroic operations, succeeded in rescuing them.
Thereafter, we were informed that there was a danger of the Mavil Aru bund breach. Our monk at Seruwawila spoke to me at midnight. By that time, our political authorities were already intervening. At that moment, once again, the armed forces, the police and progressive citizens stepped in and moved thousands of people to the Seruwawila temple. However, during that operation, a very brave air force officer lost his life. Even at the moment of death, he died thinking of others. We must remember that history will be written by their stories, rather than by the tales of these disruptive people.
Likewise, five naval officers who went on a very strenuous and dangerous mission to cut an opening in the embankment at Chundikkulam were caught in the raging waters and disappeared. Despite enormous effort, we have still not been able to find them.
Similarly, a police officer named Mr. Dharmadasa died in this disaster while returning after completing his duty. They worked day and night in the discharge of their responsibilities.
Likewise, Mr. Anuruddha Kumara, a resident of Sigiriya who was an employee of the Ceylon Electricity Board had to sacrifice his life while restoring the electricity supply in order to restore people’s lives back to normal.
Therefore, during this disaster, the tri-forces, the police, District Secretaries, Divisional Secretaries and the entire public service, sleepless and under extremely exhausting and difficult conditions, fulfilled a great responsibility. The Divisional Secretary thinks that no one in his division should suffer hardship. The Grama Niladhari thinks that no one in his area should face any difficulty. The District Secretary thinks that no one in his district should experience distress.
Even in the midst of such a disaster, there were gentlemen sitting in air-conditioned rooms, well dressed and wearing perfume, who went and questioned the District Secretary.
We must be deeply appreciative of the role played by the public service during this disaster. Among them, we must be especially grateful for the immense service rendered by the health sector in protecting lives.
Likewise, Sri Lankans living abroad, whenever our country faces any difficult situation, have always intervened in this effort with deep concern. We must be thankful for that.
We have very limited rescue equipment and basic infrastructure. However, our neighbouring friendly countries have sent us helicopters, boats, various types of machinery, trained military personnel and trained health teams to meet those needs. We are deeply grateful to all those friendly foreign nations for the assistance they have extended to help Sri Lanka recover from this disaster.
We declared a state of emergency. Under the Disaster Management Act, if necessary, the President may declare that a state of disaster exists in the whole country; if not, action can be taken under the Public Security Ordinance. The Disaster Management Council was convened for the first time in seven years on the 6th of last August. Although he did not attend that day, I wish to state that after this disaster, when that council was summoned again, the Leader of the Opposition participated.
Our decision at that time was that the Disaster Management Act is weak and therefore should be amended. The Disaster Management Act is not a strong law to face a challenge of this magnitude.
“It is the duty of every ministry, every government department and every state institution to prepare a disaster management plan.” But no such plan has been prepared. Accordingly, we considered that relying solely on the Disaster Management Act at this time is weak and inadequate to face this situation. What is stronger is to exercise powers under Section 2 of the Public Security Ordinance.
That is why the Opposition requested that a state of emergency be declared. Therefore, we issued these regulations under the Public Security Ordinance. What I request today is that you approve them.
Because, in a disaster of this nature, ordinary law is not sufficient for us to respond. In such a situation, we need a law that stands above the ordinary law. Under that framework, we are able to appoint a Commissioner – General of Essential Services. That allows us to deploy necessary equipment or officials from one part of the country to another. Thus, we decided that the most appropriate law is the Public Security Ordinance. I am very grateful for the support we received from the Opposition for that.
However, we will never use this Public Security Ordinance to violate the democratic rights of the people. Criticism of me or of our ministers is of no concern to us. It does not matter at all. Ordinary law exists for such matters. But if anyone attempts to frighten the public, mislead them, disturb the peaceful situation, or create conflict within a vulnerable community in a way that obstructs the plan to recover from this disaster, we will use these laws only in that respect.
One Member of Parliament said that a thousand people had died in Gampola. If he says that outside, taking refuge in parliamentary privilege will not protect him; we will take legal action. One cannot say such things. A large proportion of the population in Gampola is from the Muslim community. They are led to think that they are being neglected. It is for such things that we will use this law. What we need, in order to emerge from this disaster, is a very calm, peaceful and cautious intervention.
In Parliament, there was much clamour asking whether funds could be released to the Divisional Secretaries. Some began to say that the public service had become inefficient. Some claimed that public officials were afraid. These are lies. I state here that we will protect every official who intervened in this operation in good faith.
We relaxed the controls and granted authority. For the first time in Sri Lanka, a Provincial Secretary was given the power to spend up to Rs. 50 million. A District Secretary was given the authority to spend up to 100 million rupees. A Ministry Secretary was also given the authority to spend up to 100 million rupees. We did this because we trust these officials. We do not believe that they will misuse this disaster to make wrongful gains. We place strong confidence in them.
However, there have also been destructions caused together with the old political network. Those will be dealt with through the appropriate legal measures.
We know there was a need to activate the airport and the port rapidly. But what if the staff could not get there? We gave the Secretary the authority to incur expenses to accommodate his officers in nearby hotels. Likewise, we gave the Grama Niladhari the power to spend up to fifty thousand rupees. Traditional circulars and regulations must exist, but in a disaster of this nature we must not be trapped by them, so we relaxed those restrictions.
We have informed that even now some people are still living in displacement camps. According to reports, about 55,747 families were displaced. Of them, around 4,000 families have returned. Our effort has been to very quickly restore housing, electricity and other communication networks and to create an environment in which they can go back there. We are working towards that.
It is reported that 5,165 houses have been completely destroyed and 57,312 partially damaged. Around 1.7 million people have been affected by this disaster. This is, in many ways, a situation that our economy can hardly withstand.
We know that our country’s economy is not in the best of conditions. It cannot withstand even a small external shock, nor an internal tremor. We are managing this economy very carefully and steadily as we move forward. Yet there are those with embittered minds who harbour cruel expectations about our economy.
You will remember that there was agitation stirred up by saying a war might break out. Even then there were cruel expectations that bombs would go off in Colombo. A state of war was reported in the Middle East region. There were harsh hopes that rise in oil and gas prices would collapse the economy. The United States determined tax rates in line with its own policies and again there were cruel expectations that industries would collapse, exports would fall and jobs would be lost. During this flood too, what was revealed was that same cruel expectation.
Yet there are Members of Parliament who, at this time, spoke to us in a spirit of goodwill. But we should be ashamed that among them there are also embittered MPs with cruel expectations. There are citizens who strived hard to send them to Parliament, but what are the aspirations of the Member of Parliament? We will not give room to such a cruel mentality.
We know that an internal disaster of this nature has a significant impact on our economy. Since 1977, after 48 years, the lowest budget deficit in Sri Lanka is being recorded in this year 2025.
Since 2007, the highest level of government revenue in Sri Lanka is being recorded. In 2007 it was about 16.6%, and this year we are recording revenue of 15.9%. In 1977 the budget deficit was 4.5%, and this year the deficit will be reduced to 4.5%. We had estimated it at 6.8%. We are rising.
With increased revenue we have been able to maintain interest rates at a single digit for a long period. Our export income is growing. We are on the rise. Our tourism earnings are also increasing.
The budget document was approved on 21 March. Immediately afterwards, the provincial council elections came on 26 March. We only began to spend from 6 May. For every other budget document, the authority to incur expenditure has been available from 1 January.
By November 2021, capital expenditure stood at 41.9%. In 2022 it was 43.1%, in 2023 it was 37.4%, in 2024 it was 41.2% and in 2025 it is 45.6%. Thus, starting from May, this year has become the year with the highest capital expenditure since 2021. Many bills are due to be settled in December.
Therefore, I believe that this figure will increase further by a significant amount.
We have increased the salaries of public servants. A committee chaired by the Prime Minister has decided to recruit 76,000 people into the public service, tens of thousands of whom are graduates. It was at a time when we were rising in this way that this blow struck us. It is exerting an impact upon us.
Some said that we had raised this revenue simply by taxing people as much as possible. But the taxes that were in force in 2024 have been reduced. For 2025, apart from vehicle imports, no additional taxes have been imposed. The previous government was given a revenue target of 15.2% for 2025 by the International Monetary Fund. In order to achieve that, further taxes had been proposed in addition to those already in place. A digital services tax and a property tax were due to come into effect from last April. However, we reduced the digital services tax, which had been scheduled to be imposed at 30%, down to 15%. As its implementation has been postponed until April of next year, it has not been in force during 2025. We have informed the International Monetary Fund that we are considering introducing the property tax only in 2027. No new taxes have been imposed. Existing taxes have been removed.
Our strength has been that we have established very good tax administration. As a result, we have been able to obtain revenue that exceeds our expectations.
It is while we were rising in this manner that we were compelled to face this disaster. Can we tell the people affected by this disaster simply to be patient? We are not that kind of government. We cannot do that. When there is a crisis in the economy, even a small wrong decision taken with regard to the economy carries the risk of causing serious damage and a minor mistake can inflict grave harm on it. The terrifying result of such an error was that government revenue in 2022 fell to 8.8%, the lowest in Sri Lanka’s history.
Therefore, none of these measures is a decision taken in a panic, risking the economy and swayed by emotion. It is a decision reached after several days of discussion with the Ministry of Finance and the relevant officials. Even if some try to halt the implementation of this budget and bring in a new one, we are not prepared to do that. This is not merely a collection of data. This budget has been prepared with the aim of completing a particular economic strategy. We will not dismantle it. Some call for an interim budget. We will not bring one.
The budget document we have presented for 2026 is part of a policy framework prepared to enable our country to attain sustainable economic development.
We will not halt it. However, we are focusing on using certain parts of that budget document for this disaster. In the case of road development, about 40 billion rupees from the allocated funds can be used for the development of roads affected by this calamity. We have also instructed the Provincial Councils to use a portion of their allocated funds for road development in the affected areas. While maintaining our economic strategies as they are, we plan to divert a certain amount of funds for this purpose.
All this must be done while looking after the people. As a first step, we have increased the amount given as the dry–ration allowance. In addition, today we have presented a supplementary estimate of 50 billion rupees. There is absolutely no need to increase the borrowing limit for this 50 billion. We already have allocations set aside and on that basis we have presented this supplementary estimate of 50 billion rupees. We have already informed the District Secretaries that, if there is any problem in their areas, they should notify us and we are ready to send funds. Accordingly, around 10,500 million rupees have already been released to District Secretaries. This has never been done in this way before in Sri Lanka.
Today we are requesting you to approve a further supplementary estimate of 50 billion rupees. Along with that, we already have 22.2 billion rupees. That means we have 72.2 billion rupees to spend over the next 25 days. We will spend these funds as follows.
Once the immediate disaster situation subsided, we decided to grant 25,000 rupees to each affected family to clean and sanitise their homes and make them suitable for reoccupation. We are giving this amount to everyone. Previously, 10,000 rupees had been given for this purpose as an initial payment.
Similarly, we will provide a one–off grant of 50,000 rupees per household, regardless of ownership status, to purchase essential kitchen equipment so that these affected homes can be reoccupied.
We have also decided to provide 25,000 rupees per month for three months to families who have lost their homes due to landslides and are residing in displacement camps, to enable them to move into a house. We hope to extend this period to six months
Thereafter, for those whose livelihoods have been destroyed, we will provide, without distinction, a monthly grant of 50,000 rupees to families who have lost their homes and are displaced, so that they can move into rented accommodation, for the months of December, January, February and March. This will be given continuously for three months, to allow time for their means of livelihood to be re-established.
Next, for paddy, other grains and legumes affected by the disaster, we will provide a grant of 150,000 rupees per hectare. Our expectation is that these fields will be replanted. It has been reported that approximately 160,000 hectares have been damaged. Previously, for a season of less than a month, only 40,000 rupees per hectare was given. We have now decided that all 160,000 hectares will be replanted, and the farmers will be given the necessary concessions for that.
In a disaster like this, vegetables are often overlooked. We will provide 200,000 rupees per hectare for vegetable cultivation. The allocation of these funds will take effect from today. However, our ministry officials must ensure that this replanting actually takes place. Our aim is to prepare this shattered economy to recover. We must not sit with our hands folded, lamenting, but work to raise this country again from where it has fallen. Agriculture is central to that. Therefore, we ask the farming community to replant and we ask the officials to ensure that they are made ready to do so.
We have decided to grant Rs.200,000 to each livestock farm registered with the veterinary office that has been affected by the disaster, so that they can restart operations. Likewise, every small and medium-scale enterprise that is registered, irrespective of whether it is small, medium or large within that category, will receive a grant of Rs.200, 000 to resume its business activities.
We cannot simply sit and watch, doing nothing. We must breathe new life into these ventures. Today, the Central Bank is issuing a circular to provide certain relief to these entrepreneurs through the banking system. At the same time, we are in discussion with insurance companies regarding the payment of insurance premiums.
In the 2026 budget document, we have allocated 80,000 million rupees to provide loans to small and medium-scale entrepreneurs. We have instructed that a large share of these allocations should be used to provide loan assistance to revive the industries that have collapsed. Then we will be able to restore these small and medium-scale industries once again.
Likewise, where registered fishing boats have been completely destroyed, we plan to grant 400,000 rupees for each such boat.
Meanwhile, for schoolchildren affected by the disaster, steps have been taken to provide a grant of 15,000 rupees from the Treasury to purchase educational materials and, in addition, 10,000 rupees from the President’s Fund. We are already giving a grant of 6,000 rupees to schoolchildren in families receiving ‘Aswesuma’ welfare benefits and this new assistance will not affect that grant in any way.
In this way, we have strengthened our reserves to a level where we can face a serious disaster. In line with the current state of the economy, we have planned to provide these relief measures to the people.
For business premises damaged by the disaster, we will provide compensation of up to 5 million rupees per unit. For houses that have been completely destroyed and are uninhabitable due to the disaster, we will give 5 million rupees to build a new house. If there is no land, land will be provided by the government. If land is not available to be allocated, in addition to the grant for building the house, up to a further 5 million rupees will be provided to purchase land.
For houses that have been partially damaged by the disaster, we expect to provide up to 2.5 million rupees for repairs. These funds will be given in four bands of 1 million, 1.5 million, 2 million and 2.5 million rupees.
In addition, for each loss of life caused by the disaster, we have decided to grant 1 million rupees to the relatives of the deceased.
We have 72.2 billion rupees to implement over these 25 days. Today we approved the 2026 budget document. It will come into operation from January. We hope to bring a supplementary estimate of 500 billion rupees to that budget document.
As you all know, we are currently operating under the Extended Fund Facility of the International Monetary Fund. These agreements are understandings reached on the basis of international benchmarks. To change those agreements, a review is required. We have now completed the fifth review and reached a staff-level agreement. It had been planned to present this to their Executive Board on the 15th. But the situation has now changed. We are moving away from the staff-level agreement previously reached. The IMF has proposed to us that, instead of presenting it to the Board in December, it be postponed to January or February. We have agreed to this. In December, we were due to receive a tranche of 342 billion US dollars. We are in discussion to increase that tranche. To increase it, we need both negotiations and time.
However, to meet our immediate need for foreign exchange, we have requested relief of 200 million US dollars from the IMF. We believe they will respond positively to this. At the same time, we are in discussion with the Asian Development Bank to obtain the funds required to revive small and medium-scale enterprises.
We have prepared this supplementary estimate and determined the costs. But the specific projects must be identified and that takes time. We expect Parliament to approve it on the 19th. I believe that every Member of Parliament in the Opposition will support it. Usually, after the budget, Parliament meets in January, but this year it will have to meet in December. Agreement has already been reached to prorogue Parliament until 6 January.
Under the state of emergency, the Prime Minister has the power to summon Parliament. Accordingly, I request Parliament to approve this supplementary estimate I have outlined, on the 19th.
There has been severe damage to our infrastructure. We must allocate budgetary provisions for the development of this infrastructure. We have planned to complete the construction of 30 bridges by 31 December. We must re-establish connectivity within our road network. For that purpose, the Road Development Authority has already prepared a very systematic plan. On that basis, we will be able to rehabilitate the damaged road system.
We have managed to restore electricity supply to about 87%. Due to the breakdown of the Mahiyanganaya 132 kV transmission system, the power supply to areas such as Ampara, Batticaloa and Mahiyanganaya has been interrupted. We are working hard to restore that supply. Likewise, work is being carried out to restore the communications system and the water supply system.
In this way, our foremost priority has become the restoration of the shattered lives of our people. At the same time, the economy must be restarted. We are acting with a sense of responsibility towards the country. We are working day and night, drawing up plans to achieve this.
We also hope to establish a Presidential Task Force for reconstruction. Under that Presidential Task Force, a committee will be formed to raise funds.
I have seen people shouting in this Parliament that the spending of these funds is being handed over to racketeers. That is not so. The account of this fund is still in the name of the Secretary to the Treasury. Money is credited to the Consolidated Fund. It is Parliament, not the fund-raising committee that has the authority to spend these monies.
However, we are creating a statutory fund. Under the Public Finances Management Act, funds cannot be set up arbitrarily. A new law was introduced requiring an Act of Parliament in order to establish a fund. That law came after seeing what happened with the Tsunami Fund. In our history, funds in this country have often been misused in very regressive ways. I have seen claims that funds are being created in violation of the law. That has not happened. We have only appointed a committee to raise funds. Out of some malicious desire, suspicion is being cast on this fund and people are claiming that racketeers are involved. The aim of this is a reluctance to see this fund become strong. It is driven by an unhealthy craving for power.
The citizens have placed their trust in the government. Therefore, many people from outside are contributing to this fund. That trust is what strengthens the fund.
Therefore, to face this situation, we are putting in place a very robust mechanism. For that, we are creating a Presidential Task Force, under which seven units will be established. One unit will be for fund-raising. The second will prepare reconstruction plans. The third will be a subcommittee to oversee construction work properly.
We also need an effective communications committee. In addition, another unit will be created for housing construction. In this way, seven units will be formed. I invite you all to join in these efforts.
We know that a Presidential Task Force alone is not sufficient. We will very soon bring a special piece of legislation to this Parliament and have it passed. To emerge from this situation, we need at least a continuous three-year plan. We plan to introduce a special law to provide for the necessary measures.
We also need long-term plans. In drawing up these stable plans, our helicopter fleet will be very important. Our helicopters have been grounded for almost seven years. Each passing year has been a loss to us. Procurement work on five MI 70 helicopters has now been completed. This is work that should have been done earlier. Since we came in, we have already awarded the tender to restore five helicopters. Another seven helicopters are still on the ground. Procurement work on them has begun, and in a month or two the overhaul process can start. Then the helicopter fleet will be increased by a further twelve. That is how a country must prepare to face disasters.
What we need today is not cruel politics. We invite you to set that aside. In this Parliament there is a government side and an opposition side. We propose that, in order both to emerge from this disaster and to take the measures needed to prevent such a disaster recurring, we should move to a common policy framework.
Therefore, I ask that, setting aside the division into government and opposition in this Parliament, we should function as a National Council for three or four years. Let us resolve political issues on the political battlefield. At least in the face of this disaster, let us come together around a common policy framework and work to lift the country out of this crisis. I invite every Member of Parliament who represents the people to act as part of a National Council and to resolve this issue in a sustainable manner over the next three to four years. Likewise, we invite our industrialists and business community to join in this effort.
President’s Media Division (PMD)
05-12-2025