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642 Billion in Development Funds Returned Unused

by Lanka Sara Editor
November 8, 2025 - Updated on November 9, 2025
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MP Anuradha Jayaratne revealed that Rs. 642 billion allocated for development projects in the last budget had been returned to the Treasury without being spent.

Joining the budget debate and engaging in constructive criticism, the MP pointed out that of the Rs. 183 million allocated for the initial activities to empower the digital economy — a key development priority of the government — only 0.1% had been spent, while 99.9% had gone back to the Treasury. Similarly, out of Rs. 4,000 million allocated for the construction of rural roads and bridges, only Rs. 272 million had been utilized, with 93% returned to the Treasury.

The MP emphasized that this inefficiency has been a recurring problem under successive governments, adding that the same group of officials continues to place every administration in difficulty. He warned that if this situation is not addressed, it could lead to the collapse of the current government.

“In 2025, President Anura Kumara presented a budget to this Parliament. The question is, how many of the items in that budget have been implemented effectively? The extent to which the budget has been made a reality reflects how far the domestic economy has developed,” he said.

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“At that time, we all highlighted that the primary surplus was increasing — 2.3 percent. But this is a bad surplus. Why? Because if the planned development work cannot be completed and the allocated funds remain in the Treasury, presenting that unspent money as an increase in the primary surplus is misleading. This must be corrected. These are the same mistakes we made before.”

He further stated that despite having new officials, professors, and experts in place, the same administrative inefficiency continues. Citing a World Bank report, he noted that all funds are first transferred to the National Budget Department, which then disburses money to ministries as they spend it. However, a serious question arises as to how much of that money was actually utilized.

“The total unspent amount stands at Rs. 642 billion,” the MP said.

Focusing on key areas in the 2025 budget, he noted that Rs. 4,000 million was allocated for rural roads and bridges. “Government MPs and Pradeshiya Sabha members in villages are waiting for these funds to reach them so the roads can be built. But only Rs. 272 million has been spent — 93% remains in the Treasury.”

Speaking on the manufacturing economy, he said, “Our Deputy Minister Chaturanga spoke extensively about this, highlighting our strategic location. Rs. 500 million was allocated to build the Kerawalapitiya customs yard and another Rs. 500 million for the Veyangoda logistics center. Yet, progress remains at 0%. After 365 days, the bidding committee is still making recommendations. Both projects’ funds are still lying idle in the Treasury.”

He added that while officials celebrate a 2.2% primary surplus, the country’s development work has stalled.

Touching on the digital economy, he said, “The President has emphasized this initiative on every platform, and rightly so — it is the future. However, of the Rs. 183 million allocated last year for the digital identity card and related activities, only 0.1% has been spent, with 99.9% returned to the Treasury. This was a key national project meant to transform the country, but it remains unimplemented.”

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