International Monetary Fund staff concludes Sri Lanka visit on Cyclone Ditwah impact and signals follow-up talks under the Extended Fund Facility

The International Monetary Fund published an end-of-mission statement after a staff team visited Colombo to assess the economic and social impact of Cyclone Ditwah and to discuss the policy response and Sri Lanka’s financing needs, including how IMF support could be provided under the existing Extended Fund Facility (EFF) arrangement. The IMF clarified that this visit will not result in an Executive Board discussion. Discussions covered damage to infrastructure and loss of livelihoods, the fiscal response to the disaster, and implications for monetary policy and financial sector stability. The statement reports the authorities’ intention to safeguard progress on fiscal and debt sustainability, strengthen public investment management including project reprioritization and implementation, ensure transparent spending in line with the Public Financial Management Act, and continue reinforcing social safety nets for those most affected. The IMF plans to field a follow-up mission “at the earliest possible juncture” to resume discussions on economic policies for the next review under the EFF.