IMF Staff Concludes Sri Lanka Visit; Policy Talks for Next EFF Review Set to Resume ASAP

An International Monetary Fund (IMF) team, led by Evan Papageorgiou, concluded a visit to Colombo conducted from January 22 to 28 to assess the economic impact of Cyclone Ditwah.

During the mission, the team engaged with authorities and stakeholders to understand the social and economic damage caused by the storm, specifically regarding infrastructure and livelihoods.

Discussions centered on the fiscal response to the disaster and its implications for monetary policy and financial sector stability.

The meetings provided a platform for in-depth exchanges on the government’s financing needs and how the IMF can best support recovery efforts under the current Extended Fund Facility (EFF) arrangement.

As reconstruction begins, the Sri Lankan authorities have committed to safeguarding previous gains in fiscal and debt sustainability while strengthening public investment management through project reprioritization.

They have pledged to ensure all spending is executed transparently and in compliance with the Public Financial Management Act. Furthermore, the government remains determined to reinforce social safety nets to protect the poor and vulnerable populations who have been disproportionately affected by the cyclone.

The IMF plans to field a follow-up mission at the earliest possible juncture to resume formal discussions on economic policies for the next review under the EFF.

Reaffirming its solidarity with Sri Lanka, the Fund expressed its readiness to support the country’s efforts to maintain macroeconomic stability and promote resilient growth.

During the visit, the mission held high-level meetings with His Excellency the President and Finance Minister Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, and other senior officials from the Treasury and Central Bank, as well as representatives from the private sector and development partners.