IMF Executive Board to review Sri Lanka’s US$ 200 mln emergency financing request today

The Executive Board of the International Monetary Fund (IMF) is scheduled to review the government’s request for emergency financial assistance amounting to SDR 150.5 million (approximately USD 200 million) under the Rapid Financing Instrument (RFI) today (19), according to the IMF Executive Board calendar.

The request was made after the widespread destruction caused by Cyclone Ditwah, which severely affected several parts of the country.

Subsequently the government sought financial support from the IMF.

Earlier this month, IMF Mission Chief for Sri Lanka Evan Papageorgiou said Sri Lankan authorities had formally requested assistance equivalent to around 26 percent of Sri Lanka’s IMF quota, noting that the request was subject to Executive Board approval.

In a statement issued on December 5, the IMF extended its sympathies to the people of Sri Lanka impacted by the cyclone and reaffirmed its close engagement with the authorities during the recovery period.

The IMF said it remains committed to supporting Sri Lanka’s efforts to recover, rebuild and enhance resilience, as the country undertakes urgent measures to address the economic and social fallout from the natural disaster.

Approval of the RFI would provide Sri Lanka with rapid access to emergency financing to help meet immediate balance-of-payments needs arising from the cyclone-related shock.

The fifth review of the IMF’s Extended Fund Facility has been completed. The Executive Board was originally scheduled to meet on December 15 to approve it, but the meeting was postponed due to the request for this emergency financial assistance.

However, the IMF Executive Board, meeting today, is also expected to focus on this review.