The Cabinet of Ministers has approved a proposal to present a Supplementary Estimate to Parliament, allocating Rs. 219,373 million to cover essential expenses for the remainder of 2024. This was announced by Cabinet Spokesman and Minister Dr. Nalinda Jayatissa during today’s press briefing.
Dr. Jayatissa explained that these expenses would be managed within the approved expenditure limits for 2024, adhering to the Appropriation Act and the government’s maximum borrowing ceiling. Adjustments will be made through internal reallocations of the existing expenditure framework.
The proposal, presented by President Anura Kumara Dissanayake in his capacity as the Minister of Finance, Planning, and Economic Development, includes funding for the following purposes:
- Interest Subsidy on CPC Debt Restructuring:
Rs. 130 billion to the Department of Public Enterprises for paying interest subsidies to banks due to the restructuring of Ceylon Petroleum Corporation (CPC) debts transferred to the government’s balance sheet. - Exchange Loss Accounting:
Rs. 18 billion to the Department of Treasury Operations to account for exchange losses incurred on dollar accounts held by the Deputy Secretary to the Treasury following the rupee’s appreciation against the US dollar. - Senior Citizens’ Interest Subsidy:
Rs. 32.64 billion to the Department of Development Finance to reimburse banks for additional interest payments under special senior citizen interest schemes. - School Uniform Grant:
Rs. 9.83 billion to the Ministry of Education for school uniforms provided as a grant by the Chinese Government. - Aircraft Grant Accounting:
Rs. 8.33 billion to the Sri Lanka Air Force to account for two aircraft received as a grant from the United States and to pay related taxes. - Increased Retirement Allowances:
Rs. 1.4 billion to the Department of Pensions for enhanced retirement benefits. - Debt Restructuring Advisory Costs:
Rs. 3.21 billion to the Ministry of Finance to reimburse payments to financial and legal advisors engaged in debt restructuring efforts. - Fishermen Relief Aid:
Rs. 1.53 billion to the National Budget Department for emergency assistance from the Chinese Government to support small-scale fishermen in the Northern and Eastern Provinces. - Fuel and Customs Duties for Health Sector:
Rs. 10.83 billion to the National Budget Department to account for fuel stocks received from the Japanese Government for the health sector and to pay Rs. 5.23 billion in customs duties. - School Nutrition Program:
Rs. 1.8 billion to the National Budget Department to increase the daily student allowance for the School Nutrition Program from Rs. 85 to Rs. 110. - Natural Disaster Compensation:
Rs. 400 million to the Ministry of Defense for property reconstruction compensation due to natural disasters. - Increased Prison Expenses:
Rs. 1.4 billion to the National Budget Department for increased food costs in prisons, driven by a rise in inmate numbers and food prices.
The Supplementary Estimate is aimed at addressing urgent fiscal needs while ensuring financial prudence and adherence to approved budgetary constraints.
