IMF exploring additional support for Sri Lanka as full scale of cyclone damage emerges

Sri Lanka
By Editor_1

COLOMBO – The International Monetary Fund (IMF) says it is assessing options to provide further support to Sri Lanka as the country reels from the extensive economic and humanitarian fallout of Cyclone Ditwah, which has left more than 800 people dead or missing.

Julie Kozack, Director of the IMF’s Communications Department, told reporters in Washington that Sri Lanka’s economic activity has been “adversely affected” by the disaster, and that a clearer picture will emerge once a rapid post-disaster damage assessment is completed by national authorities and partners.

“Sri Lanka’s economic activity has been significantly impacted, and more information will be available once the rapid assessment is complete,” Kozack said. “Right now, staff is looking into options to further support Sri Lanka in the recovery process.”

She confirmed that the IMF Executive Board meeting on Sri Lanka, scheduled for December 15, is still expected to proceed. The meeting was initially slated to review the island nation’s progress under its $2.9 billion Extended Fund Facility (EFF) program.

“As we have more information that can inform our own thinking around the options for how we can further support Sri Lanka, we will be providing additional details,” Kozack added, indicating that discussions are underway on potential enhancements to the existing program or supplementary assistance.

Cyclone Ditwah, which struck the island on November 28, triggered catastrophic floods and landslides across multiple districts, causing widespread destruction of homes, roads, bridges, and agricultural land. With more than 800 people dead or reported missing, it is one of the worst climate-related disasters in Sri Lanka’s history.

Economic analysts warn the cyclone’s impact could further strain Sri Lanka’s fragile recovery following last year’s sovereign debt crisis and ongoing cost-of-living pressures.

The IMF has not yet specified what form additional support may take, but options could include restructuring program timelines, emergency financing instruments, or expanded allocations for social protection and reconstruction.

Kozack emphasized that the Fund’s next steps will be guided by the findings of the post-disaster assessment and the evolving needs of the Sri Lankan economy.

-ENCL

Editor_1
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