IMF Executive Board Approves US$206 Million in Emergency Financial Support for Sri Lanka

• The IMF Executive Board approved emergency financing under the Rapid Financing Instrument (RFI), providing Sri Lanka with immediate access to about US$206 million.
• The RFI will help Sri Lanka address the urgent needs arising from the catastrophic Cyclone Ditwah and preserve macroeconomic stability.
• Given the time needed to assess the impact of the cyclone and evaluate how the IMF-supported program can best support Sri Lanka’s recovery and reconstruction efforts, the Fifth Review under the Extended Fund Facility (EFF) is deferred. Discussions will resume in early 2026.

The Executive Board of the International Monetary Fund (IMF) approved a disbursement of SDR150.5 million (about US$206 million, equivalent to 26 percent of quota) for Sri Lanka under the Rapid Financing Instrument (RFI). This emergency support will help address urgent balance-of-payments and fiscal pressures arising from the catastrophic Cyclone Ditwah, which hit the country on November 28.

Due to The Sri Lankan government remain committed to their economic reform program supported by the Extended Fund Facility (EFF) and The cyclone hit when the Fifth Review under the EFF was nearing completion. Given the time needed to assess the economic impact of the cyclone and examine how IMF-supported program can best support Sri Lanka’s recovery and reconstruction efforts while preserving objectives and policy priorities, the Fifth Review has been deferred. An IMF mission team will visit Sri Lanka in early 2026 to resume discussions.

Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, stated that the, Sri Lanka was hit by a catastrophic cyclone, claiming more than 600 lives and affecting millions more. Flooding and landslides have displaced more than 100,000 people, destroyed critical infrastructure, and devastated livelihoods across the country. The disaster has created urgent humanitarian and reconstruction needs, generating significant fiscal pressures and balance-of-payments needs. The emergency financial support provided by the IMF under the RFI will help address these pressures.