IMF Approves $206 Million Rapid Financing Facility for Sri Lanka

The Executive Board of the International Monetary Fund (IMF) has expressed its agreement to provide Sri Lanka with USD 206 million under a Rapid Financing Instrument (RFI).

This approval comes after the Executive Board of the International Monetary Fund met yesterday (19) to consider a request made by the Sri Lankan government. The Sri Lankan government had previously requested a rapid financing facility of USD 200 million from the International Monetary Fund to respond to the challenges the country faces after the damage caused by Cyclone 'Ditwa'.

This new financing facility is offered in addition to the Extended Fund Facility (EFF) already provided to Sri Lanka by the International Monetary Fund. The fifth review of the Extended Fund Facility has already been completed, and although the Executive Board was scheduled to meet on December 15 to approve it, that meeting was postponed due to the request for the Rapid Financing Instrument.

Accordingly, an IMF operational team is reportedly scheduled to visit Sri Lanka in early 2026 to resume discussions on the Extended Fund Facility.