Government drafting Rebuilding SL Act

Govt. defends disaster recovery initiative after COPF raises concerns over legal status

Leader of the House, Minister Bimal Rathnayake on Friday (12) said that legislation to formally establish the Rebuilding Sri Lanka Fund was currently being drafted, while rejecting allegations that the initiative was operating illegally.

Making a statement in Parliament, Rathnayake sought to address what he described as a “misconception” surrounding the fund following concerns raised by the Committee on Public Finance (COPF) in past weeks, referencing the National Audit Office (NAO).

He maintained that the fund was operating legally despite not being established through a dedicated act of Parliament yet.

According to Rathnayake, the account currently functions under the Deputy Secretary to the Treasury and is being administered through the Treasury until the legislative process is completed.

He noted that governments had previously maintained similar accounts to receive donations for disaster relief efforts, including following the tsunami in 2004 and the Easter Sunday terror attacks in 2019, and argued that such arrangements were common practice until formal legal frameworks were put in place.

Rathnayake also defended the use of the name Rebuilding Sri Lanka, saying it had been adopted to make the initiative easily identifiable to the public and potential donors.

“People wanted to contribute towards disaster recovery following the floods. If we had simply referred to it as an account belonging to the Deputy Secretary of the Treasury, the public would not have understood its purpose,” he said.

He further stressed that all donations received through the initiative constituted public funds and therefore fell under the Consolidated Fund, meaning no expenditure could be made without parliamentary approval.

Rathnayake said that the Government had already allocated Rs. 500 billion for disaster-related expenditure and was currently utilising those funds in accordance with existing regulations.

Calling on the Opposition to support the initiative, he accused critics of creating unnecessary confusion among potential donors.

He also rejected comparisons with previous administrations, stating that the current Government was committed to ensuring transparency and accountability in managing public funds.

“The focus should remain on the good intentions behind this initiative rather than administrative technicalities that are already being addressed through the legislative process,” he said.

His remarks came a week after officials from the NAO informed the COPF that no statutory fund currently existed under the name Rebuilding Sri Lanka, despite the initiative having received more than Rs. 6 billion in donations for post-Cyclone Ditwah recovery efforts.

The matter was discussed during a recent COPF meeting convened to review the NAO’s 2026 Annual Programme.

During the discussions, NAO officials informed the committee that while Cabinet had approved the establishment of the fund in 2025 under the proposed public financial management framework, the process had not been completed yet.

Officials said donor contributions had instead been deposited into accounts maintained by the Deputy Secretary to the Treasury and certain accounts held at the Central Bank.

According to figures published on the initiative’s website, Rebuilding Sri Lanka had received Rs. 6.16 billion and $ 11.34 million in donations as of 9 April.

However, committee members noted that the website did not disclose how the funds had been allocated or identify projects financed through the initiative.

NAO officials further informed the committee that despite the significant inflow of donations, no money had been disbursed from the account to date. 

Source: The morning