Post disaster recovery: government in consultation with IMF

An IMF team to visit Sri Lanka early next year for next review

• The IMF is committed to supporting the country as it undertakes urgent efforts to recover, rebuild and promote resilience for the future

By Kelum Bandara   

The government will carry out its post- disaster economic recovery plan in consultation with the International Monetary Fund (IMF), an official said yesterday.   

The government authorities are currently in the process of assessing the exact economic loss inflicted by cyclone Ditwah. However, it is roughly estimated that the disasters- riverine floods, floods,landslides and earth-slips- caused a loss of US $ 6-7 billion.   

Asked whether the current IMF programme will be renegotiated under the current circumstances, he said that the government is doing everything in consultation with the IMF.   >>A2

Responding to a query about the ability to stick to the IMF macroeconomic targets, he said ,” It is too early to say,” However he said there would not be a new budget for 2026 as outlined by President Anura Kumara Dissanayake.  

Mr. Evan Papageorgiou, International Monetary Fund (IMF) Mission Chief for Sri Lanka , said earlier, “The Sri Lankan authorities have requested financial assistance from the IMF under the Rapid Financing Instrument (RFI) for SDR 150.5 million (approximately 26 percent of quota or about US$200 million). This request is currently under consideration and subject to approval by the IMF’s Executive Board.   

“The IMF remains closely engaged with Sri Lankan authorities during this challenging period; and is committed to supporting the country as it undertakes urgent efforts to recover, rebuild and promote resilience for the future.”   

Meanwhile, in response to the media queries about the status of the fifth review of the Extended Fund Facility (EFF), an International Monetary Fund (IMF) spokesperson said that an IMF team will visit Sri Lanka in early 2026 to resume discussions for the completion of the Fifth Review of the Extended Fund Facility (EFF).   

“In light of the Sri Lankan authorities’ request made to the IMF Board for emergency financing, consideration of the Rapid Financing Instrument (RFI) is the priority at the current juncture. The support under the RFI is in addition to Sri Lanka’s EFF access,” the spokesperson said.