An International Monetary Fund (IMF) team led by the IMF’s Mission Chief for Sri Lanka, Evan Papageorgiou, visited Colombo from January 22 to 28 to assess the impact of Cyclone Ditwah and hold discussions with government officials and other stakeholders.

“During the mission, the team engaged with authorities and relevant stakeholders to understand the economic and social impact of the cyclone, including the damage to infrastructure and loss of livelihoods. Discussions focused on the fiscal response to the natural disaster, as well as on the implications for monetary policy and financial sector stability,” Papageorgiou said in a statement issued on January 28.

He noted that the meetings included detailed exchanges on the authorities’ policy priorities going forward, their financing needs, and the ways in which the IMF can best support Sri Lanka’s recovery and reconstruction efforts under the Extended Fund Facility (EFF) arrangement.

“As Sri Lanka starts rebuilding, the authorities are committed to safeguard the gains that were achieved on fiscal and debt sustainability, strengthen public investment management including project reprioritization and implementation, and ensure spending is executed transparently and in compliance with the Public Financial Management Act,” he stated. 

He added that the authorities are determined to continue strengthening “social safety nets” to protect the “poor and vulnerable,” who have been disproportionately affected by the cyclone.

“We plan to field an IMF mission at the earliest possible juncture to resume discussions on economic policies for the next review under the EFF,” Papageorgiou noted. “We reaffirm our solidarity with Sri Lanka and readiness to support the country in its efforts to safeguard macroeconomic stability and promote resilience and sustainable growth.”

According to the statement, the IMF delegation met with President and Finance Minister Anura Kumara Dissanayake; Prime Minister Dr. Harini Amarasuriya; Labor Minister and Deputy Minister of Finance and Planning Prof. Anil Jayantha Fernando; Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe; Secretary to the Treasury Dr. Harshana Suriyapperuma; Senior Economic Advisor to the President Duminda Hulangamuwa; and other senior government and Central Bank officials.

The mission also held discussions with representatives from the private sector, civil society organizations, and development partners. 

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