IMF Moves To Fast-Track Sri Lanka's Request For Emergency Funding

(MENAFN- Colombo Gazette) The International Monetary Fund has announced that it will give swift attention to Sri Lanka's appeal for approximately US$200 million in rapid financial support, following the severe damage inflicted by Cyclone Ditwah.

According to the Fund, its Executive Board will review the application for Rapid Financing Instrument (RFI) assistance as an urgent matter, given the country's immediate need for relief. This proposed aid will be provided in addition to the ongoing Extended Fund Facility (EFF) programme already in place for Sri Lanka.

An IMF delegation is set to arrive in the country at the beginning of 2026 to continue technical discussions related to the Fifth Review of the EFF arrangement.

The institution confirmed on Friday that it is assessing Sri Lanka's call for expedited financial help as the island grapples with significant losses caused by the cyclone. Evan Papageorgiou, the IMF's mission chief for Sri Lanka, described the storm as having caused“immense damage and widespread hardship,” extending sympathies to affected communities. The cyclone has disrupted infrastructure networks, forced large-scale displacement and intensified concerns about the nation's fragile economic stability.

Sri Lanka's request amounts to SDR 150.5 million, or roughly US$200 million, representing about 26 percent of the country's quota. The Executive Board will evaluate the economic impact of the disaster and the government's overall financial standing before making a final decision.

Papageorgiou stated that the IMF is working closely with national authorities during this critical period and reaffirmed the institution's commitment to helping Sri Lanka rebuild and strengthen its resilience.

The plea for support comes as the country continues to confront a prolonged economic challenge characterised by limited foreign currency reserves, rising prices and a substantial debt load. The aftermath of Cyclone Ditwah has intensified pressure on the administration as it races to restore basic services and deliver aid to affected regions.

Assistance from global financial partners, including multilateral agencies such as the IMF, is expected to be vital for both short-term relief and long-term reconstruction.

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