Sri Lanka’s public accountability system is preparing for one of its most demanding years yet, with the National Audit Office (NAO) planning an unprecedented 3,508 audits in 2026. 

The scale of this workload revealed during the latest meeting of the Committee on Public Finance (COPF) has raised fresh questions about the country’s governance environment, institutional capacity, and financial discipline at a time of economic fragility.

According to the NAO’s 2026 Annual Work Programme, the audit lineup includes 3,484 financial audits, 12 special audits, 11 performance audits, and a single environmental audit. 

Although the volume signals increased oversight, it also points to a growing complexity in managing public funds and evaluating the performance of ministries, state entities, and development schemes.

A major new addition is the responsibility of auditing Samurdhi Community-Based Banks and Samurdhi Bank Societies, which will fall under the Auditor General from 2026.

 During the COPF session chaired by Dr. Harsha de Silva, concerns were raised over whether the Audit Office has the capacity to take on this expanded portfolio.

Acting Auditor General officials confirmed that 10%–15% more staff will be required beyond the current cadre, and that pilot audits now under way will determine whether recruitment or outsourcing is necessary.

The committee signaled its support for outsourcing certain components of the Samurdhi-related audits, acknowledging that the Auditor General alone cannot shoulder the full nationwide workload in the given timeframe. 

A directive has been issued for the NAO to complete its pilot study and report back by February 2026.

Governance analysts note that the increased audit volume reflects both heightened parliamentary scrutiny and serious underlying risks across public finance systems. 

The COPF also reviewed the Final Report on the 2026 Appropriation Bill, which contains its assessment of ministry-level budget allocations. 

Although details remain confidential, committee members emphasised the need for transparent spending frameworks as fiscal consolidation continues under the IMF programme.

Meanwhile, COPF examined the new regulations under the National Medicines Regulatory Authority Act, urging greater transparency in pharmaceutical registrations a sector long criticised for opaque approval processes and pricing concerns. The regulations were approved following review.For the NAO, 2026 will test whether Sri Lanka’s audit infrastructure can match the rising expectations of Parliament and the public. 

The ultimate impact of these audits will extend far beyond the audit office itself: uncovering mismanagement, strengthening financial discipline, and enhancing confidence in state institutions. 

With the economy still vulnerable, effective auditing will be essential to safeguarding taxpayer funds and ensuring that welfare programmes and development budgets deliver real value

A total of 143.03 kilometers of Sri Lanka’s coastline have been heavily polluted as a result of the severe flooding triggered by Cyclone Ditwah, the Marine Environment Protection Authority (MEPA) announced.

MEPA Chairman Samantha Gunasekara said the intense rainfall and widespread flooding have caused significant contamination across both the coastal belt and surrounding sea areas. According to initial assessments, an estimated 5,280 man-hours will be required to fully restore the affected zones.

The most severely impacted coastal stretches include Colombo, Negombo, Chilaw, Puttalam, Kalpitiya, and parts of the Eastern Province.

Gunasekara explained that floodwaters and landslides across the country had swept household belongings, debris, and waste through river basins, ultimately depositing them along the coastline. In addition, prevailing monsoon winds have pushed waste drifting from the Indian coast onto Sri Lankan shores.

To address the accumulated debris, MEPA is assembling a hired workforce, with the cleanup expected to take a minimum of three weeks. Once collected, the waste will be sorted and recycled with the support of local government bodies.

MEPA’s network of 13 regional offices will also assist in the cleanup operations.

Meanwhile, the Authority is preparing an observation report on potential waste deposits on the seabed, following concerns that underwater areas may also have been affected by the cyclone-induced flooding.

Russia has dispatched a planeload of humanitarian assistance to Sri Lanka as the country continues to recover from the devastation caused by Cyclone Ditwah in late November, Russia’s RIA news agency reported.

Sri Lanka’s Ambassador to Moscow, Shobini Gunasekera, told the agency that a flight carrying 35 tonnes of relief supplies has already departed and is expected to arrive later today.

Cyclone Ditwah has been recorded as Sri Lanka’s deadliest natural disaster since the 2004 tsunami, claiming 635 lives and impacting nearly 10% of the population. The cyclone caused severe damage to vital infrastructure and key agricultural sectors, including rice and tea cultivation.

Authorities estimate that total recovery and reconstruction costs could reach as high as US$ 7 billion.

Prime Minister Dr. Harini Amarasuriya says that floods cannot be allowed to continue disrupting the lives of residents in the Colombo District.

Speaking to the media following the Colombo District Disaster Management Committee meeting held at the Colombo District Secretariat, the Prime Minister stressed that development cannot be used as an excuse for allowing settlements that expose communities to disaster risks.

She emphasized the need for a district-level flood control plan, prepared with the participation of all relevant agencies and implemented in a fully coordinated manner.

“We are currently discussing solutions to address the safety concerns of communities living in vulnerable areas of the Colombo District,” the Prime Minister stated, reaffirming the government’s commitment to ensuring long-term, sustainable flood mitigation.

Sri Lanka has secured a loan of US$ 30 million from the International Development Association (IDA) of the World Bank Group to support the implementation of the “Secure, Affordable and Sustainable Energy for Sri Lanka Project,” aimed at enhancing the nation’s renewable energy capacity.

The Financing Agreement was signed by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka at the World Bank Group.

According to the Ministry of Finance, the project has been designed to address current grid limitations that hinder the effective use of renewable energy. Upgrading infrastructure will be central to enabling greater integration of renewable power sources, in line with the government’s policy target of generating 70% of electricity from renewables by 2030.

The investment will also be supported by a World Bank–backed payment guarantee facility to encourage private sector participation in renewable energy development. This initiative aims to expand renewable energy use, strengthen grid infrastructure, ensure a secure and affordable power supply, attract private investment, and build institutional capacity for long-term sector reforms.

The total cost of the project is estimated at US$ 60 million, with the World Bank providing US$ 30 million in the first phase. The remaining US$ 30 million is expected to be allocated in a second phase.

The Ceylon Electricity Board (CEB) will implement the project in coordination with the Ministry of Energy and the Ministry of Finance.

Showers or thundershowers will occur at times in Northern, North-Central, Eastern, Central, Southern and Uva provinces. Heavy falls above 100 mm are likely at some places in Northern, North-Central and Eastern provinces. Fairly heavy falls about 75 mm are likely at some places in Central and Uva provinces.

Showers or thundershowers may occur at several places in the other areas of the island after 1.00 p.m. Fairly heavy falls about 75 mm are likely at some places in these areas.

Fairly strong winds of about (30-40) kmph can be expected at times over Northern, North-central and North-western provinces and in Trincomalee district and the Eastern slopes of the central hills.

Misty conditions can be expected at some places in Sabaragamuwa, Central and Southern provinces during the early hours of the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.