CoPF endorses Rs. 50 b supplementary allocation for disaster relief

CoPF Chairman MP Dr. Harsha de Silva

• Funding to come from Consolidated Fund, other State-held finances, or loans secured at discretion of Govt. for use this year
• CoPF also approves regulations issued under Section 71 of Value Added Tax Act
• Clears NMRA regulations, reviews 2026 Audit workload  

The Committee on Public Finance (CoPF), chaired by MP Dr. Harsha de Silva in a special sitting held on 5 December, considered a resolution to allocate up to Rs. 50 billion through a supplementary estimate to support restoration efforts for communities affected by the recent emergency disaster situation. 

The funds will be drawn from the Consolidated Fund or any other State-held finances, including loans secured at the discretion of the Government, for use within the 2025 financial year.

In the wake of the Ditwah-related natural disasters that pummelled the country, President Anura Kumara Dissanayake last week urged Parliament to convene before the official commencement in January 2026 to approve the Rs. 50 billion estimate for 2025. He also said the Government would submit another supplementary estimate for Rs. 500 billion in January to finance relief and recovery spending in 2026.

Additionally, the Committee approved regulations issued under Section 71 of the Value Added Tax Act, No. 14 of 2002, as published in Gazette Extraordinary No. 2460/44.

The Committee also convened on 3 December 2025 to review several key regulatory and financial matters, including new regulations issued under the National Medicines Regulatory Authority (NMRA) Act, the National Audit Office’s Annual Work Programme for 2026, and the Final Report on the Appropriation Bill for the 2026 financial year.

During its deliberations on the NMRA regulations published in Gazette Extraordinary No. 2452/39 of 4 September 2025, the Committee underscored the need to enhance system-wide transparency and visibility in the medicine registration process. Following its review, the CoPF approved the regulations.

The Committee also examined the National Audit Office’s Annual Work Programme for 2026, which outlines a total of 3,508 audits scheduled for the year. These include 3,484 financial audits, 11 performance audits, one environmental audit and 12 special audits.

A significant addition for 2026 is the inclusion of Samurdhi Community-Based Banks and Samurdhi Community-Based Bank Societies under the Auditor General’s audit mandate. 

The Committee raised concerns over staffing capacity to absorb the new workload. The Acting Auditor General informed members that an additional 10–15% staff would be required beyond the existing cadre, with pilot audits currently underway through regional offices. 

These pilots will continue until the end of February 2026, after which the exact human resource requirement whether through recruitment or outsourcing will be determined.

The CoPF agreed to advise the Speaker that it supports the potential outsourcing of the Samurdhi-related audit work, subject to further evaluation by the Auditor General. The National Audit Office has been directed to complete its pilot project and report findings to the Committee by end-February 2026.

The Committee also reviewed the Final Report submitted under Standing Order 121(5)(ii) on the Appropriation Bill for the 2026 financial year, capturing its observations and recommendations on ministerial Budget proposals and expenditure allocations.

Several Members of Parliament serving on the CoPF were present at both meetings.