The “Rebuilding Sri Lanka” Fund has accumulated nearly Rs. 10 billion in local and international donations, although the money remains unspent as discussions continue over the establishment of its formal legal framework.
The status of the fund came under scrutiny following a briefing by the Auditor General’s Department to the Committee on Public Finance (COPF), which revealed that a legally independent statutory fund under the name “Rebuilding Sri Lanka” has not yet been established.
Instead, all donations received to date are being held in a dedicated account administered by the Deputy Secretary to the Treasury (DST).
The Rebuilding Sri Lanka initiative and its corresponding fund were launched on 13 January 2026 under the patronage of President Anura Kumara Dissanayake as part of a broader Rs. 500 billion national recovery programme in the aftermath of Cyclone Ditwah.
The fund was established to support the construction of new homes for permanently displaced families, provide compensation for partially damaged properties, stabilise landslide-prone areas, and restore agricultural lands, rural roads, and irrigation infrastructure.
Cabinet approval was granted for the fund to operate as a statutory body under the Presidential Secretariat. A Management Committee chaired by Labour Minister and Deputy Minister of Finance and Planning Anil Jayantha Fernando was appointed to oversee its operations, with representation from both the public and private sectors. A separate Presidential Task Force headed by Prime Minister Harini Amarasuriya was tasked with monitoring the implementation and distribution process.
However, the initiative has sparked debate as the Rebuilding Sri Lanka Fund was established outside the framework of the Disaster Management Act, No. 13 of 2005. The issue has gained further significance following the enactment of the Public Finance Management Act, which no longer permits the operation of non-statutory public funds.
Addressing concerns over the status of the donations, Deputy Minister Fernando said the Government remained fully accountable for all funds received.
He noted that while approximately Rs. 200 billion from Treasury allocations had already been utilised for emergency relief and recovery efforts following the cyclone, the nearly Rs. 10 billion received through donations from individuals, businesses, and overseas Sri Lankans had not yet been spent.
According to the National Audit Office, the funds cannot be disbursed independently until the necessary legal framework establishing the statutory fund is finalised.
COPF Chairman Harsha de Silva nevertheless observed that the Treasury-controlled account remains subject to parliamentary oversight and audit through the Ministry of Finance, ensuring accountability during the transition period.
The Government has assured Parliament that a comprehensive report detailing all local and foreign contributions, together with a transparent expenditure plan, will be presented once the legislation required to formally establish the fund has been finalised.
