Sri Lanka to receive swift access to US$ 350 million IMF funding

A representative of the International Monetary Fund (IMF) has stated that Sri Lanka is expected to receive swift access to approximately US$ 350 million, the sixth tranche of the Extended Fund Facility, within two weeks.

This was revealed during a high-level donor forum convened by the Ministry of Finance with the participation of diplomatic missions, bilateral and multilateral development partners and international lending agencies to assess the aftermath of Cyclone Ditwah and coordinate assistance for national relief, rescue and restoration efforts, the President’s Media Division said in a statement.

The meeting was co-chaired by the Governor of the Central Bank and the Secretary to the Treasury, and was attended by senior government officials, including Senior Economic Adviser to the President, Duminda Hulangamuwa, Senior Additional Secretary to the President, Russell Aponsu, Secretary to the Ministry of Public Administration, Aloka Bandara, as well as representatives from the Prime Minister’s Office, Ministry of Foreign Affairs, Foreign Employment and Tourism, the Disaster Management Centre and Treasury Departments.

The Secretary to the Treasury presented an overview of the extensive damage caused by the cyclone across all sectors of the country, stressing the government’s intention to transition from emergency response to a broader, long-term recovery framework. He underscored the urgent need for development assistance from bilateral and multilateral partners, particularly rapid humanitarian support such as food supplies, grants, concessional financing and short- to medium-term aid, the PMD noted.

The Central Bank Governor highlighted the importance of external financial support, noting the constraints posed by contracting economic sectors and limited scope for domestic borrowing. Government authorities also urged development partners to encourage international engagement and promote travel to Sri Lanka to help revitalise the tourism sector.

Development partners reaffirmed their strong commitment to support Sri Lanka during this critical period. A representative of the International Monetary Fund announced that Sri Lanka is expected to receive swift access to approximately USD 350 million, the sixth tranche of the Extended Fund Facility, within two weeks, the PMD stated.

Several development and donor partners have also committed to immediate assistance, including disaster relief missions, emergency services and essential humanitarian supplies such as food, clean drinking water, hygiene kits, medical supplies and emergency healthcare to stabilise affected communities and prevent disease outbreaks. Some countries have already deployed disaster relief and humanitarian teams on the ground.

Partners also agreed to repurpose and redesign existing loan facilities to support medium-term rehabilitation of damaged economic and social infrastructure including major roads, bridges, irrigation systems and transport networks. They further explored options for new loan and grant packages to address long-term development needs.

The World Bank has already initiated a rapid post-disaster assessment, while development partners held detailed discussions on a comprehensive damage and needs assessment covering housing, infrastructure, agriculture and services to mobilise funding for medium- and long-term recovery.

Sri Lanka extended its deep appreciation to all international development partners for their proactive engagement, solidarity and continued support as the country works to restore essential services, assist affected families and rebuild the nation, the PMD statement added further.