IMF to prioritise US$ 200 million Rapid Financing Instrument request made by Sri Lanka

The International Monetary Fund (IMF) has decided to prioritise the US$ 200 million Rapid Financing Instrument (RFI) request made by Sri Lanka in a bid to tackle the challenges the country is facing following the devastation caused by Cyclone Ditwah.

In a statement, the IMF has announced that in light of Sri Lankan authorities’ request for emergency financing, the IMF’s Executive Board will consider the Rapid Financing Instrument (RFI) request as a priority at the current juncture.

The support under the RFI is in addition to Sri Lanka’s Extended Fund Facility access, the IMF noted.

An IMF team is also scheduled to visit Sri Lanka in early 2026 to resume discussions for the completion of the Fifth Review of the Extended Fund Facility (EFF).

The IMF said on Friday that it is considering an emergency request from Sri Lanka for about US$ 200 million in rapid financial assistance, as the country struggles to recover from the devastation left by Cyclone Ditwah.

Evan Papageorgiou, the IMF’s mission chief for Sri Lanka, said the cyclone had caused “devastating impact and widespread destruction,” and expressed condolences to those affected. The storm, one of the most destructive to hit Sri Lanka in recent years, has battered infrastructure, displaced thousands and intensified concerns over the country’s fragile economic recovery.

Sri Lanka has asked the Fund for support under its Rapid Financing Instrument, seeking SDR 150.5 million- about 26 percent of its quota, or roughly US$ 200 million.

The request will need approval from the IMF’s Executive Board, which is expected to assess the scale of the disaster’s economic fallout and the government’s broader fiscal position.

“The IMF remains closely engaged with the Sri Lankan authorities during this challenging period,” Papageorgiou said in a statement.

“We are committed to supporting the country as it undertakes urgent efforts to recover, rebuild and promote resilience for the future.”

The appeal comes as Sri Lanka continues to navigate a prolonged economic crisis marked by depleted foreign reserves, high inflation and a heavy debt burden. The cyclone’s destruction has added new pressure on the government, which is racing to restore essential services and provide relief to hard-hit communities.

International assistance - including from multilateral lenders like the IMF- is likely to play a critical role in the country’s immediate recovery and longer-term rebuilding efforts.