Ditwah damage reconstruction unlikely to finish in 2026, says Treasury

Restoration and reconstruction efforts following extensive damage due to Cyclone Ditwah in late 2025 are unlikely to be completed within 2026, the Ministry of Finance has warned in its latest Fiscal Strategy Report.The report states that despite Parliament approving an additional Rs. 500 billion in supplementary allocations for reconstruction work in 2026, the scale, complexity, and scope of the recovery programme mean that completion within the planned timeframe is not feasible.According to the Treasury, any unutilised portion of the supplementary allocation cannot be legally carried forward into 2027 under the current provisions of the Public Financial Management framework.This presents a potential challenge for the continuity of ongoing reconstruction activities, the Ministry noted.The Fiscal Strategy Report further notes that the exact funding requirements for remaining works will be determined only after a revised assessment is conducted at the end of the year. Authorities expect the review to provide a clearer picture of outstanding costs and project timelines.While some of the remaining obligations may be accommodated within the 2027 primary expenditure ceiling, the report cautions that additional budgetary allocations may still be required. However, the report noted that both the scale and timing of any further funding remain uncertain at this stage.The document also indicates that, in line with fiscal regulations, Parliament may need to approve a supplementary estimate in 2027 to finance only those reconstruction activities already initiated under the 2026 allocation, strictly for the purpose of completing ongoing projects.