News
Sluggish capital spending irks govt: AKD cracks the whip
The highest levels of government have expressed serious concern about the sluggish pace of capital spending by Ministries, with some having utilised as little as 11% of their allocated budgets, according to sources.
With more than half the fiscal year having elapsed, it is increasingly likely that no Ministry will be able to utilise its capital expenditure allocations fully by year-end. The underutilisation has prompted President Anura Kumara Dissanayake himself to initiate reviews of Ministry project performance, beginning with the Ministry of Health on Friday (06).
At the review meeting, held at the Presidential Secretariat, President Dissanayake evaluated the progress of infrastructure development and human resource projects in the health sector, as well as the ongoing challenges in medical procurement and pharmaceutical standardisation. Present at the meeting were Minister of Health and Mass Media Dr. Nalinda Jayatissa, top officials from the Ministry of Health and the Ministry of Finance, and senior presidential advisors.
Sources from several ministries identified what they described as administrative paralysis as a key reason for the delay in capital spending. Middle and upper-middle-level Ministry officials reportedly lack the necessary political clearances from recently appointed Ministers and Deputy Ministers, many of whom lack experience. In some Ministries, project implementation has come to a near standstill following political interventions and changes initiated by NPP-aligned union leaders, according to sources.
Despite the government’s focus on infrastructure and development—reflected in the Rs. 1.32 trillion allocation for capital expenditure (roughly 31% of the total non-debt government spending)—implementation has lagged. The 2025 Budget, passed on March 21, allocated Rs. 7.19 trillion in total government expenditure, with notable capital allocations made to sectors such as transport (Rs. 421 billion), agriculture (Rs. 124 billion), urban development (Rs. 98 billion), and health (Rs. 95 billion).
The Ministry of Finance, which received the largest overall budget of Rs. 714.2 billion (including Rs. 229.3 billion in capital expenditure), is expected to take the lead in coordinating remedial action.
Political party sources said that the NPP top brass were disturbed that failure to execute the capital projects effectively could stall the government’s broader goals of economic recovery, infrastructure modernisation, and service delivery reform in 2025.The President is expected to continue Ministry-by-Ministry reviews in the coming weeks to identify bottlenecks, party sources said.
Latest News
Landslide Early Warnings issued to the Districts of Kurunegala and Ratnapura
The National Building Research Organisation (NBRO) has issued Landslide Early Warnings to the Districts of Kurunegala and Ratnapura effective from 16:00 hrs on 23.04.2026 To 16:00 hrs on 24.04.2026
Accordingly,
Level 1 landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Rideegama in the Kurunegala district and Kuruwita, Kalawana, Ratnapura, Nivithigala, Pelmadulla and Eheliyagoda in the Ratnapura district.
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Advisory for Severe Lightning issued for the Western, Sabaragamuwa, Central, North-western, North-central, Southern, Uva provinces, and Ampara and Batticaloa districts
Advisory for Severe Lightning
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
Issued at 12.00 noon 23 April 2026 valid for the period until 11.30 p.m. 23 April 2026
Thundershowers accompanied with severe lightning are likely to occur in the Western, Sabaragamuwa, Central, North-western, North-central, Southern, Uva provinces, and in Ampara and Batticaloa districts after 1.00 p.m.
There may be temporary localized strong winds during thundershowers. General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.
ACTION REQUIRED:
The Department of Meteorology advises that people should:
• Seek shelter, preferably indoors and never under trees.
• Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• Avoid using open vehicles, such as bicycles, tractors and boats etc.
• Beware of fallen trees and power lines.
• For emergency assistance contact the local disaster management authorities.
News
Compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level – PM
Prime Minister Dr. Harini Amarasuriya emphasized that compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level. She further stated that all necessary allocations have already been made to Provincial Councils and instructed that the progress of disaster damage assessments and reconstruction efforts be closely monitored at the provincial level.
The Prime Minister made these remarks at a discussion held on Tuesday (21) at Temple Trees under her patronage, aimed at informing Chairpersons of District Coordination Committees and public representatives from disaster-affected districts, in order to accelerate the implementation of the “Rebuilding Sri Lanka” programme. The discussion focused on expediting disaster relief and compensation payments, as well as the swift restoration of infrastructure damaged by the disaster.
The Prime Minister emphasized that Rs. 500 billion has been allocated for damages caused by the Ditwah cyclone, and that all relevant development activities must be completed before the end of 2026. The Prime Minister also instructed officials to pay special attention to resolving issues at the local level that are causing delays in compensation payments.
Senior Additional Secretary to the President, G.M.R.D. Aponsu, stated that the estimated cost for reconstruction following the Ditwah cyclone is approximately USD 3.4 billion. Accordingly, funds have been allocated for compensation across several sectors including housing and social infrastructure, agriculture and livestock, fisheries, industry and livelihoods, and irrigation. He further noted that 99% of the Rs. 25,000 allowance has already been disbursed, while 95% of the Rs. 50,000 resettlement allowance has been paid. Compensation for fully and partially damaged houses is still ongoing, and 99% of temporary relief centres have been closed.
Additionally, attention was drawn to several other measures, including providing Rs. 25,000 to affected schoolchildren, paying Rs. 1 million as compensation for each deceased individual, compensation for children who lost one or both parents, support for persons with disabilities affected by the disaster, compensation for agricultural losses, and expediting resettlement of displaced families. Measures such as allocating land for new housing construction and accelerating the issuance of reports from the National Building Research Organization were also discussed.
Focus was also placed on the reconstruction of affected schools, hospitals, and daycare centres, improving the accuracy and speed of data collection at the local level, and accelerating infrastructure development.
The event was attended by Minister of Plantation and Community Infrastructure Samantha Vidyarathna, Minister of Public Administration, Provincial Councils and Local Government Dr. Chandana Abayarathna, Deputy Minister of Agriculture and Livestock Namal Karunaratne, Deputy Minister of Trade, Commerce, Food Security and Cooperatives R.M. Jayawardena, Deputy Minister of Education Dr. Madhura Senevirathna, Members of Parliament, Chairpersons of District Coordination Committees, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Additional Secretary to the President Jayantha Bandara; and officials of the Prime Minister’s Office.
[Prime Minister’s Media Division]
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