IMF Fact-Finding Mission to Visit Sri Lanka in Late Jan 📈

An International Monetary Fund (IMF) mission will visit Sri Lanka from January 22–28 to evaluate the economic fallout of Cyclone Ditwa and its impact on the nation’s Extended Fund Facility (EFF) reform programme. • Key Mission Objectives The team aims to assess the scale of physical and economic damage while discussing the government's policy intentions. This follows the deferral of the Fifth Review under the US$ 2.9 Bn bailout due to the disaster. • Emergency Funding & Fiscal Support On Dec 19, the IMF approved immediate emergency financing of ~US$ 206 Mn via the Rapid Financing Instrument (RFI) to address urgent balance-of-payments needs. This supports the government’s LKR 500 Bn supplementary estimate for disaster recovery. • Energy & Utility Sector Reforms The IMF reaffirmed that maintaining cost-recovery pricing for electricity and utilities is essential for fiscal sustainability and to prevent further losses at state-owned enterprises (SOEs). • Economic Context The mission will analyze how the cyclone—which caused an estimated US$ 4.1 Bn in direct damage (~4% of GDP)—affects the 2026 growth targets and fiscal parameters. _Note: Assessments are based on provisional data following the November 2025 disaster._