The International Monetary Fund (IMF) has expressed deep condolences to the people of Sri Lanka in the wake of the devastating cyclone and severe flooding that has claimed lives and displaced thousands across the country.

Speaking 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 affected by major flooding in recent weeks.

Kozack stated that the IMF is closely engaging with Sri Lankan authorities, development partners and other counterparts to evaluate 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 noted.

Sri Lanka is currently conducting a rapid post-disaster damage assessment together with its partners. 

The IMF says it will have a clearer picture of the economic implications once this assessment is completed.

Regarding Sri Lanka’s ongoing Extended Fund Facility (EFF) programme, Kozack confirmed that the IMF remains committed to supporting the country’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 stated.

She 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.

She stated that IMF staff are now “looking into options to further support Sri Lanka in the recovery process,” and that the IMF Board meeting scheduled for December 15 is still expected to take place.

“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,” Kozack added.