IMF MD Pledges Support; US$ 206 Mn Emergency Aid Disbursed 📈

IMF Managing Director Dr. Kristalina Georgieva visited Mawathura village this week, expressing solidarity with communities devastated by Cyclone Ditwah. The visit follows the approval of a critical financial lifeline to stabilize the economy. • Emergency Funding & Impact Amount: US$ 206 Mn (SDR 150.5 Mn) disbursed via the Rapid Financing Instrument (RFI). Purpose: A one-off payment to address urgent balance of payments and fiscal pressures without ex-post conditionality. Total Damage: World Bank estimates Cyclone Ditwah caused US$ 4.1 Bn in direct physical damage, equivalent to ~4% of GDP. • Sectoral & Regional Breakdown Infrastructure: Hardest hit with US$ 1.73 Bn in damages to roads, bridges, and power. Agriculture: Suffered US$ 814 Mn in losses, threatening food security and rural livelihoods. Housing: Over 91,000 homes damaged or destroyed, totaling US$ 985 Mn in losses. Kandy District: Identified as the most affected region with US$ 689 Mn in damages. • Macroeconomic Outlook Growth: 2026 GDP growth projections have been moderated to ~3.0%–4.5% (down from earlier 5% targets) as the "disaster boom" in construction (PMI rose to 66) offsets some losses. EFF Program: The Fifth Review of the US$ 2.9 Bn bailout is deferred to early 2026 to recalibrate targets based on reconstruction needs. _Note: Figures based on World Bank GRADE report and provisional IMF data._