IMF Signals Extra Support for Sri Lanka After Cyclone Ditwah Devastation

COLOMBO (News 1st); The International Monetary Fund (IMF) signaled strong solidarity with Sri Lanka in the wake of Cyclone Ditwah, confirming that it is actively exploring options to provide further support for recovery and resilience beyond the existing Extended Fund Facility (EFF).

Julie Kozack, Director of the IMF’s Communications Department, opened her remarks with heartfelt condolences:

“Our deepest sympathies go out to the people of Sri Lanka for the effects of the devastating cyclone. Our hearts mourn the loss of life that has taken place,” she said, extending condolences to other Asian nations also grappling with severe flooding, including Indonesia, Malaysia, Thailand, and Vietnam.

On Sri Lanka, Kozack emphasized that the IMF is closely engaging with authorities, development partners, and counterparts to assess the humanitarian, social, and economic toll of the disaster.

“Large parts of Sri Lanka have been affected by floods, and we expect economic activity to be adversely impacted in addition to the significant human toll,” she noted.

The IMF is awaiting the completion of a rapid post-disaster damage assessment, led by Sri Lankan authorities in collaboration with international partners, to better gauge the economic impact.

“We are continuing to support Sri Lanka’s recovery, reform, and resilience under the EFF arrangement. Our staff is looking into options to further support Sri Lanka in the recovery process,” Kozack confirmed.

She reiterated that the Board meeting scheduled for December 15 remains on track, following the staff-level agreement on the fifth review reached in October—prior to the cyclone.

“We will provide additional details as the assessment of economic needs and damages moves forward, and as we have more information to inform our thinking around the options,” she added.

In a related note, Sri Lanka is set to receive a critical lifeline of USD 350 million from the International Monetary Fund within two weeks, marking the sixth tranche of the Extended Fund Facility. The announcement came as international development partners reaffirmed strong support for the nation’s relief and recovery efforts following the devastating impact of Cyclone Ditwah.

The pledge was made during a high-level donor forum convened by the Ministry of Finance, bringing together diplomatic missions, multilateral lenders, and bilateral partners to coordinate emergency assistance and long-term rehabilitation.

The meeting was co-chaired by the Governor of the Central Bank and the Secretary to the Treasury, with participation from senior government officials, where an overview of the cyclone’s extensive damage across housing, infrastructure, agriculture, and essential services was presented.