The International Monetary Fund has approved about US$206 million in emergency financial assistance for Sri Lanka under the Rapid Financing Instrument, to help address urgent economic pressures caused by Cyclone Ditwah.
The cyclone, which struck on November 28, claimed more than 600 lives, displaced over 100,000 people, and caused extensive damage to infrastructure and livelihoods, resulting in severe fiscal and balance-of-payments pressures.
The Government of Sri Lanka has expressed its gratitude to the IMF for the timely support, stating that the assistance will be instrumental in meeting immediate humanitarian needs and supporting recovery and reconstruction efforts. The government has also reaffirmed its commitment to ensuring transparency, accountability, and strict compliance with public financial management laws in the utilisation of the funds, while maintaining fiscal discipline and debt sustainability.
Due to the time required to fully assess the economic impact of the disaster, the IMF has deferred the Fifth Review of Sri Lanka’s Extended Fund Facility programme, with discussions scheduled to resume in early 2026.
IMF Deputy Managing Director Kenji Okamura said the emergency funding would help address urgent reconstruction and humanitarian needs, while noting that Sri Lankan authorities remain committed to fiscal prudence, transparency, and ongoing economic reforms as the country recovers from both the cyclone and its recent financial crisis.
