Overview
- The IMF board cleared $206 million under its rapid financing instrument to address urgent humanitarian and balance-of-payments pressures after Cyclone Ditwah.
- Cyclone Ditwah killed more than 640 people and affected over 10% of Sri Lanka’s population as floods and landslides caused extensive damage.
- The IMF deferred the fifth review of Sri Lanka’s $2.9 billion Extended Fund Facility, with a mission planned in early 2026 to resume discussions.
- Sri Lanka’s parliament approved a LKR 500 billion supplementary estimate for relief, and the government outlined $1.6 billion in additional 2026 recovery spending.
- Further support includes $120 million repurposed by the World Bank and a $200 million Asian Development Bank loan, with the IMF noting authorities’ continued commitment to reforms.