IMF to assess cyclone damage in Sri Lanka as talks on programme resumption loom

Evan Papageorgiou

An International Monetary Fund (IMF) staff team will visit Sri Lanka from January 22 to 28, to assess the economic damage caused by Cyclone Ditwah, with the findings expected to feed into the subsequent discussions on the island’s IMF-supported programme, the IMF said on Wednesday.

The mission, led by IMF Mission Chief for Sri Lanka Evan Papageorgiou, will hold discussions with the government authorities and other stakeholders to evaluate the scale and scope of losses to the infrastructure, livelihoods and overall economic stability following the cyclone.

“This mission underscores the IMF’s commitment to supporting Sri Lanka as it deals with the economic and humanitarian challenges caused by the recent cyclone,” Papageorgiou said in a statement issued from Washington.

The assessment comes as Sri Lanka seeks to protect its fragile recovery after emerging from a deep balance-of-payment crisis, with extreme weather events adding new fiscal and social pressures. The damage estimates from the mission are expected to inform how the IMF calibrates its engagement going forward.

The IMF team will also explore avenues to support the country’s recovery, including the possible resumption of the Extended Fund Facility-supported programme, alongside policy advice and technical assistance aimed at strengthening resilience and promoting sustainable growth.