The International Monetary Fund (IMF) has extended its heartfelt condolences to the people of Sri Lanka following the devastating cyclone and severe flooding that have claimed lives and displaced thousands across the country.

At a press briefing, Julie Kozack, Director of the IMF’s Communications Department, said the institution’s “hearts go out to the people of Sri Lanka,” as well as communities in Indonesia, Malaysia, Thailand and Vietnam, which have also been struck by major flooding in recent weeks.

Kozack noted that the IMF is working closely with Sri Lankan authorities, development partners and other counterparts to assess the humanitarian, social and economic impact of the disaster.

“We understand that large parts of Sri Lanka have been affected by the floods. On that basis, we do expect economic activity to be adversely affected, in addition to the significant human toll that the cyclone has taken,” she said.

Sri Lanka, together with its development partners, is currently carrying out a rapid post-disaster damage assessment. The IMF stated that it will have a clearer understanding of the economic impact once this process is complete.

Addressing the country’s ongoing Extended Fund Facility (EFF) programme, Kozack reaffirmed the IMF’s continued commitment to supporting Sri Lanka’s recovery and reform efforts.

“With respect to the IMF, we are continuing to support Sri Lanka’s recovery, reform and resilience under the EFF arrangement,” she said.

She also highlighted that Sri Lankan authorities and IMF staff had already reached a staff-level agreement on the fifth review in October, prior to the cyclone.

Kozack added that staff are currently “looking into options to further support Sri Lanka in the recovery process,” and confirmed that the IMF Board meeting scheduled for December 15 is still expected to proceed as planned.

“As we have more information on the economic needs and damages, that can inform our own thinking around the options for how we can further support Sri Lanka,” she said.