The Committee on Public Finance (CoPF) has approved a Rs. 71.7 billion relief package under Supplementary Estimate No. 03 of 2026 to support measures aimed at addressing the economic impact arising from the conflict in the Middle East.
According to the Department of Communication of Parliament, the approval was granted during a meeting chaired by Member of Parliament Dr. Harsha de Silva.
During the meeting, the Committee reviewed the proposed allocation of funds and examined the government's planned relief measures in response to current economic challenges.
Officials informed the Committee that Rs. 52.8 billion of the total allocation would be directed to the petroleum sector to offset potential losses caused by higher fuel import costs and to ensure an uninterrupted fuel supply.
Another Rs. 18.9 billion has been allocated to replenish the annual budget contingency reserve, which had previously been used for fuel subsidies, fertilizer assistance for smallholder tea growers, and support for the fisheries sector.
The Committee was told that the funding would be sourced from the remaining balance of the Rs. 500 billion Supplementary Estimate No. 01 of 2026, which had been introduced to finance relief and recovery efforts following Cyclone Ditwah.
Officials also clarified that the proposal would not increase the government's expenditure ceiling or borrowing limit for 2026, as it involves reallocating funds that had already been approved.
The relief package includes allocations of Rs. 15 billion for the Ceylon Electricity Board, Rs. 8.2 billion for the Aswesuma welfare programme, Rs. 3 billion for Yala agricultural activities, Rs. 2.2 billion for smallholder plantation farmers, and Rs. 1.2 billion for the fisheries sector.
The Committee also received an update from the Road Development Authority on reconstruction work following damage caused by Cyclone Ditwah, including assistance pledged by India and China for the rebuilding of damaged bridges.
In addition, members discussed disaster preparedness measures, including the possible impact of the El Niño phenomenon. During the discussion, Dr. Harsha de Silva highlighted the importance of strengthening the Disaster Management Statutory Fund.
The Committee also considered matters relating to public sector salary structures and the determination of the Auditor General's salary, deciding to continue discussions before reaching a final decision.
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