IMF Fact‑Finding Mission To Examine Ditwah Damage, Economic Outlook

COLOMBO (News 1st); An IMF fact‑finding mission will arrive in Sri Lanka from 22nd to 28th January, marking the first major engagement with the country since Cyclone Ditwah devastated key regions and derailed the timeline of the ongoing IMF program.

IMF Communications Director Julie Kozack, responding to News 1st's Zulfick Farzan, confirmed that the visit is designed to “firm up our understanding of the size and scope of the damage caused by the cyclone” while reviewing how the shock alters Sri Lanka’s macroeconomic path and policy requirements under the Extended Fund Facility (EFF).

The announcement comes weeks after the IMF Executive Board, on 19th December, approved USD 206 million in emergency funds under the Rapid Financing Instrument (RFI)—a move specifically intended to help Sri Lanka address urgent, cyclone‑related needs while maintaining macroeconomic stability.

“This is a fact finding mission,” Kozack stressed, underscoring that the objective is to gather a clear picture of ground realities as the country navigates overlapping economic and climate‑driven pressures.

Cyclone Ditwah left Sri Lanka with widespread infrastructure damage, displaced communities, and unexpected fiscal pressures—forcing the government to redirect resources toward recovery efforts.

In response, the IMF activated the emergency RFI window, granting immediate liquidity aimed at stabilizing the economy during the crisis.

Kozack noted that the RFI is intended to support urgent needs while helping the nation “preserve macro-economic stability” as recovery progresses.

During the week-long visit, the IMF team will:

Assess the full economic impact of Cyclone Ditwah
Hold detailed discussions with authorities on their updated policy intentions

“Our goal is to help Sri Lanka as it recovers from the catastrophic cyclone and support it in whatever way we can, in line with our mandate,” Kozack said.

Responding to News 1st’s question on potential changes to IMF objectives—particularly around electricity pricing—Kozack was clear: the program’s commitment to cost recovery in the utility sector remains unchanged.

“This is really important to ensure fiscal sustainability,” she said. “It helps ensure that the utility company does not run into financial losses.”

However, she acknowledged that what may be needed going forward will depend on the findings of the January mission, as the disaster’s full implications become clearer.