Monday Dec 08, 2025
Monday Dec 08, 2025
Monday, 8 December 2025 04:52 - - {{hitsCtrl.values.hits}}
The Finance Ministry has announced a wide-ranging financial support program for households and businesses hit by Cyclone Ditwah, as the Government moves to stabilise communities and prevent deeper economic scarring from the country’s worst natural disaster in years.
The relief scheme adds fiscal pressure at a time when the Treasury is attempting to consolidate public finances under the International Monetary Fund (IMF) program. But the Government has signalled that immediate stabilisation of disaster-affected areas takes precedence, with financing routed mainly through the Defence Ministry and implemented via Divisional Secretariats nationwide.
Although the Circular does not indicate the total fiscal outlay, the scale of payments suggests a significant expenditure at a time when the Government is attempting to rebuild confidence following 2022’s external debt standstill.
On Friday, President and Finance Minister Anura Kumara Dissanayake addressing Parliament said the Government would submit a Rs. 50 billion supplementary estimate for immediate relief spending for 2025 and a separate Rs. 500 billion for 2026. He said that a request has been made to the IMF to allow the country to access $ 200 million from special drawing rights. The IMF was also requested that the next $ 347 million tranche under the External Fund Facility (EFF) due later this month to be increased.
The recent measures, set out in the Finance Ministry Budget Circular No. 08/2025 of 5 December, outline direct cash transfers, housing reconstruction grants, and sector-specific compensation for farmers, small enterprises, and fishing communities.
According to the Circular, households will receive a one-time payment of Rs. 25,000 to clean and safely re-enter homes affected by flooding and landslides. Families whose kitchens or essential living spaces have been rendered unusable will be granted Rs. 50,000.
Additional resettlement allowances are available for families requiring temporary shelter, including up to Rs. 25,000 per month for those whose homes were fully destroyed.
The largest fiscal commitments relate to housing reconstruction, payments of up to Rs. 5 million, will be provided to families whose houses were completely damaged, either for rebuilding on existing land or purchasing a new plot where State land cannot be allocated. Partially damaged homes may qualify for up to Rs. 250,000, subject to on-site assessment by officials.
Agriculture, one of the sectors most disrupted by the cyclone, will receive compensation for crop and livestock losses. Farmers may claim Rs. 150,000 per hectare for paddy, grains, and field crops, and Rs. 200,000 per hectare for vegetable cultivation.
Registered livestock farmers will be paid Rs. 20,000 per animal lost. Small industries and micro-enterprises may receive Rs. 200,000 per unit to restore machinery and resume operations, while fishers may receive up to Rs. 400,000 for damaged vessels.
The Government also announced payments of Rs. 15,000 to support schoolchildren affected by the disaster, along with Rs. 1 million to families of those who died or were rendered permanently disabled.
The Finance Ministry said that the scheme must be administered with strict verification processes, referencing earlier disaster-relief circulars that govern damage assessment. The guidelines stipulate that duplicate claims are prohibited and that certain categories of relief must be adjusted to account for earlier payments made under separate disaster-relief programs.
The relief package applies only to areas formally designated as disaster zones following Cyclone Ditwah, but may be used in addition to other Government assistance schemes now underway. Officials have been instructed to implement the measures immediately, with payments channelled through local administrations under Treasury oversight.
