Rs. 700 Billion Recovery Plan Amid Economic Challenges

COLOMBO (News 1st); President Anura Kumara Dissanayake announced that the government has allocated Rs. 700 billion for nationwide recovery efforts following recent devastation, emphasizing that rebuilding lives and communities remains a top priority.

Speaking on the government’s strategy, the President revealed that a comprehensive damage assessment report from the World Bank is expected on Monday.

“This report will help us understand the full extent of the damage,” he said, adding that the funds have already been earmarked to restore livelihoods and critical infrastructure.

However, the President cautioned that injecting Rs. 500 billion into the market could have significant implications for inflation.

The President also highlighted concerns over foreign exchange stability, noting that every rupee spent has a US Dollar component — from groceries to fuel and housing construction.

To mitigate these risks, Sri Lanka has requested USD 200 million in rapid financing from the IMF, with the Executive Board meeting today. The government also expects support from the World Bank and Asian Development Bank, and aims to attract an additional USD 500 million above the projected range for 2026.