Sri Lanka Increases Disaster Relief Allowances for for Cyclone Victims

The Ministry of Finance, Planning and Economic Development has issued Budget Circular No. 08/2025 (i), introducing critical amendments and expanded relief measures to the national empowerment program for those affected by recent disasters.

The new directive, dated December 20, 2025, aims to streamline the restoration of lives following emergency landslides and floods caused by adverse weather.

Key Highlights of the Enhanced Relief Package

The updated circular provides specific financial allowances across several sectors:

• Housing & Livelihood Support: Families unable to continue their livelihoods due to destroyed homes will receive a monthly allowance for up to three months.
  • Rs. 25,000 for families with two or fewer members.
  • Rs. 50,000 for families with more than two members.
• Agriculture: A one-time allowance of Rs. 150,000 per hectare is now available for crop damage or replanting of paddy, maize, and field crops. For vegetables, fruits (banana, papaya, pineapple), and onions, the allowance is set at Rs. 200,000 per hectare.
• Livestock: Compensation for deceased animals includes up to Rs. 200,000 per hybrid cattle and Rs. 50,000 for local cattle, with a total farm limit of Rs. 2 million. Poultry and swine farmers are also eligible for specific per-animal allowances.
• Fisheries: The Cey-Nor Foundation will provide new boats for completely damaged vessels, while North Sea Ltd. will issue Rs. 100,000 coupons for fishermen to replace lost nets.
• Business & Reconstruction:
  • Business Owners: Can claim up to Rs. 5 million for building repairs based on assessments, or a flat Rs. 500,000 without assessment.
  • Homeowners: Completely damaged or uninhabitable houses are eligible for a Rs. 5 million rebuilding allowance. Partial repairs are capped at Rs. 2.5 million.

Implementation and Religious Sites

A dedicated one-time allowance of Rs. 25,000 has been allocated for the cleaning and restoration of damaged religious places, to be managed by the Ministry of Buddhasasana, Religious and Cultural Affairs.

All other provisions from the original December 5 circular remain in effect, with relevant line ministries expected to issue further instructions for immediate implementation.