‘s Recovery After Cyclone Devastation

The International Monetary Fund (IMF) is actively investigating options to further support Sri Lanka in the recovery process following the devastating cyclone and widespread flooding. This commitment comes as the IMF continues to back Sri Lanka’s reform efforts under the Extended Fund Facility (EFF) arrangement. The IMF’s Director of Communications, Julie Kozack, conveyed the institution’s deepest sympathies for the significant human toll and loss of life in Sri Lanka, as well as in other affected Asian nations like Indonesia, Malaysia, Thailand, and Vietnam.

The IMF is currently engaged in close cooperation with the Sri Lankan authorities and development partners to assess the comprehensive humanitarian, social, and economic toll of the cyclone. They recognize that large parts of the country have been affected by the floods and consequently anticipate an adverse effect on economic activity. A clearer economic assessment is pending the completion of the rapid post-disaster damage assessment, which is being finalized by the Sri Lankan authorities in collaboration with international partners.

Regarding the existing program, the IMF staff and the Sri Lankan authorities had already reached a Staff–Level Agreement on the Fifth Review back in October, prior to the natural disaster. Despite the recent events, the IMF still expects to hold an Executive Board meeting on December 15th. Staff efforts are now focused on identifying additional means of support for the recovery. Kozack stated, “Staff is looking into options to further support Sri Lanka in the recovery process.” She added that further details on these new support options will be provided as the assessment of economic needs and damages progresses and as more information becomes available to inform the IMF’s strategy.