The Executive Board of the International Monetary Fund (IMF) is scheduled to review the Sri Lankan government’s request for emergency financial assistance of SDR 150.5 million, equivalent to approximately US$200 million, under the Rapid Financing Instrument (RFI) today (19), according to the IMF Executive Board calendar.
The request was submitted following the widespread destruction caused by Cyclone Ditwah, which severely affected several parts of the country, prompting the government to seek urgent financial support from the IMF.
Earlier this month, IMF Mission Chief for Sri Lanka Evan Papageorgiou confirmed that Sri Lankan authorities had formally requested assistance amounting to around 26 percent of the country’s IMF quota, noting that the disbursement is subject to approval by the Executive Board.
In a statement issued on December 5, the IMF expressed its sympathies to the people of Sri Lanka affected by the cyclone and reaffirmed its close engagement with the authorities during the recovery process.
The IMF also reiterated its commitment to supporting Sri Lanka’s efforts to recover, rebuild and strengthen resilience, as the country implements urgent measures to address the economic and social impacts of the natural disaster.
If approved, the RFI would provide Sri Lanka with rapid access to emergency financing to meet immediate balance-of-payments needs arising from the cyclone-related shock.
Meanwhile, the fifth review under the IMF’s Extended Fund Facility has already been completed. Although the Executive Board was initially scheduled to meet on December 15 to approve the review, the meeting was postponed following the emergency financing request. The IMF Executive Board meeting today is also expected to consider this review.
