Sri Lanka’s economic recovery has encountered fresh uncertainty following the impact of Cyclone Ditwah, but the International Monetary Fund (IMF) has reaffirmed its continued support while assessing the damage caused by the disaster.
During his fourth visit to the country, IMF Asia and Pacific Department Director Dr. Krishna Srinivasan met President Anura Kumara Dissanayake and expressed optimism about Sri Lanka’s future, describing it as a beautiful country with vast potential. Speaking after travelling outside Colombo for the first time, he said he personally witnessed both the country’s strengths and the destruction caused by recent flooding and damaged infrastructure that require urgent repairs.
He conveyed the IMF’s sympathies to those affected by the disaster and noted that many people appreciated the government’s recent governance reforms. Dr. Srinivasan explained that although the visit had been planned months earlier, the delegation chose to proceed despite the unexpected cyclone to demonstrate solidarity with the people of Sri Lanka.
The meeting was attended by IMF officials as well as representatives from the Central Bank and the Ministry of Finance. Dr. Srinivasan also confirmed that IMF Managing Director Kristalina Georgieva is expected to visit Colombo next month to review progress and reiterate the Fund’s backing for Sri Lanka’s reform programme.
Meanwhile, IMF Mission Chief for Sri Lanka Evan Papageorgiou said the team is carefully studying how the cyclone has affected economic activity, as well as fiscal and monetary policies under the Extended Fund Facility arrangement. He noted that the programme had been performing strongly before the disaster struck, but the cyclone has created new uncertainties that will be reflected in updated economic projections and performance targets.
According to Papageorgiou, the review will use the latest damage assessments from the Disaster Management Centre along with details of government relief and recovery measures. While the full impact is still being evaluated, he stressed that IMF programmes are designed to adjust to major shocks such as natural disasters.
He added that understanding the cyclone’s wide-ranging economic effects is essential, and said such revisions are a normal part of IMF reviews worldwide. The IMF delegation is expected to return to Colombo in the coming weeks to continue discussions and complete the assessment.
