IMF to Expedite $350 Million Loan, Pledges Separate Disaster Aid

The International Monetary Fund (IMF) is prepared to mitigate the impact on Sri Lanka's economy following the recent loss of life and property damage caused by Cyclone Ditwa and the prevailing flood situation in the country, stated Ms. Julie Kozack, Director of the IMF's Communications Department, at a press briefing. She mentioned that the IMF is working closely with Sri Lankan authorities and development partners to assess the humanitarian, social, and economic impact of this disaster, adding that a clearer understanding of the economic repercussions would be available once the disaster damage assessment is complete.

It was further revealed that the International Monetary Fund remains committed to supporting Sri Lanka's economic reform program, and a sum of USD 350 million, as the sixth tranche of the program under the Extended Fund Facility (EFF), is expected to be disbursed to Sri Lanka within the next two weeks. Final decisions on this matter are scheduled to be made at the IMF Executive Board meeting set for December 15, and Ms. Kozack further confirmed that a staff-level agreement on the fifth review, which preceded the cyclone, has already been reached.

Meanwhile, a high-level special meeting of donors was held yesterday at the Ministry of Finance with the aim of coordinating relief services and reconstruction efforts following the disaster. Chaired by the Governor of the Central Bank and the Secretary to the Treasury, the discussion was attended by diplomatic missions, representatives of foreign lending institutions, and numerous high-ranking government officials. During the meeting, the Treasury Secretary presented an overview of the destruction caused by the cyclone, emphasizing the urgent need for humanitarian aid and medium-term financial facilities.