A fact-finding mission from the International Monetary Fund (IMF) is scheduled to visit Sri Lanka from January 22 to 28 to assess the damage caused by Cyclone Ditwa and evaluate its implications on the country’s ongoing economic reform program, according to IMF Communications Director Julie Kozack.
Kozack made these remarks in response to a question from Financial Chronicle during the IMF’s regular press briefing held today (15). She stated that the mission’s primary objective is to gain a clearer understanding of the extent and impact of the cyclone’s damage and to engage in discussions with Sri Lankan authorities regarding their policy intentions.
“The team will discuss with the authorities their policy intentions and the implications of the impact of the cyclone for the Extended Fund Facility (EFF) program,” she said, emphasizing that this mission is strictly for fact-finding purposes. It aims to enable the IMF to better assess how it can support Sri Lanka moving forward.
Kozack also revealed that on December 19, the IMF Executive Board approved emergency financing of approximately USD 206 million for Sri Lanka under the Rapid Financing Instrument (RFI). This provides the country with immediate financial support to address urgent needs arising from the disaster while helping to preserve macroeconomic stability.
Addressing a separate question on electricity tariffs, Kozack reaffirmed Sri Lanka’s commitment under the IMF program to maintaining cost-recovery pricing in the utility sector. She noted that this is essential to ensure fiscal sustainability and prevent financial losses at state-owned utility institutions.
She added that any additional support Sri Lanka may require in the aftermath of the cyclone will be discussed during the upcoming mission, in line with the IMF’s mandate to support the country’s economic stability and recovery.
