By a special correspondent
Sri Lanka’s post-cyclone recovery is now at a decisive crossroads, with growing criticism that the Government’s financial relief plan—presented by the President in Parliament—does not come close to matching the catastrophic scale of destruction caused by Cyclone Ditwah. As floods, landslides, and storm surges wiped out thousands of homes and crippled transport networks, the country faces one of its largest reconstruction challenges in decades. Yet analysts warn that the Government’s current allocations risk leaving affected families and entire regions behind.
The President’s recovery framework includes funding for house repair grants, livelihood assistance, temporary shelters, and initial clean-up operations. While these measures might offer short-term relief, experts argue that they fall far short of the sustained, large-scale investment required to rebuild destroyed property and restore economic activity. Preliminary assessments estimate total damages between $3 billion and $6 billion, a figure equivalent to Rs. 1–2 trillion. However, the Government has so far designated only a fraction of this amount for reconstruction.
This mismatch between damage and funding has fuelled fierce criticism in Parliament. Public Finance Committee Chair Harsha de Silva has repeatedly argued that the State must free up significantly larger sums—starting with Rs. 500 billion currently earmarked for retiring treasury bills next year. He emphasised that while debt management is important, national emergencies demand flexibility, especially when tens of thousands of citizens have lost homes, livelihoods, and access to basic infrastructure.
De Silva stressed that treasury bill retirement could be postponed by a year or two, noting that the Government itself previously directed banks to maintain over Rs. 1 trillion in emergency reserves. “This is not the time to protect interest margins,” he told Parliament, calling instead for immediate and people-centred financial mobilisation. He also highlighted that the MSME sector is nearing a Rs. 1 trillion debt burden, making urgent intervention essential to prevent widespread business collapse.
Legally, the State has room to manoeuvre. The Public Financial Management Act sets a 13% expenditure ceiling for 2026 under the IMF agreement, but allows exceptions during emergencies. De Silva insisted that the President’s administration can and must utilise these provisions to expand relief spending. Without such action, he warned, the country risks deepening its economic hardship and slowing regional recovery for years.
The concerns extend beyond funding adequacy. Critics point to the slow pace of disbursing existing allocations. Nearly Rs. 50 billion from the 2025 Budget remains unused, despite being specifically designated for emergency operations, road clearance and household support. Even the standard Rs. 25,000 compensation payment has sparked debate, with economists arguing that inflation and soaring construction costs render it insufficient. Many insist that payments should be doubled if the Government expects families to begin rebuilding.
As entire villages remain buried under landslide debris and key road networks remain impassable, the central question persists: Is the Government’s recovery plan designed for real reconstruction, or merely for political optics? Without transparent damage assessments, swift fund deployment, and bold financial reallocation, Sri Lanka risks prolonging its disaster recovery and undermining public trust at a time when decisive leadership is essential.