Sri Lanka's Committee on Public Finance has authorized a substantial relief package to mitigate economic pressures stemming from Middle East tensions, with the majority of funds directed toward stabilizing fuel supplies and replenishing welfare reserves.
Parliament's Committee on Public Finance has given approval to a Rs. 71.7 billion relief package designed to cushion the economic fallout from the Middle East conflict, according to an announcement from the Department of Communication. The decision was made during a committee session chaired by Member of Parliament Dr. Harsha de Silva.
The petroleum sector will receive the lion's share of the allocation at Rs. 52.8 billion, intended to counteract rising fuel import expenses and maintain consistent fuel availability throughout the country. An additional Rs. 18.9 billion has been earmarked to restore the annual contingency reserve, which was previously depleted through fuel subsidies, agricultural support for tea smallholders, and fisheries assistance.
The relief measure is sourced from unallocated portions of a Rs. 500 billion supplementary estimate approved earlier this year for recovery efforts following Cyclone Ditwah. Officials confirmed that implementing this package will not expand the government's overall spending ceiling or increase its 2026 borrowing requirements, as it represents a reallocation of previously sanctioned funds. The package also includes Rs. 15 billion for the Ceylon Electricity Board, Rs. 8.2 billion for the Aswesuma welfare scheme, and smaller allocations for agricultural and fisheries initiatives.
During the same session, the Committee reviewed cyclone reconstruction progress and disaster readiness strategies. Dr. de Silva highlighted the necessity of strengthening the Disaster Management Statutory Fund in light of potential El Niño impacts, while discussions on public sector salary structures and the Auditor General's compensation were deferred for further consideration.
