ECONOMYNEXT – An International Monetary Fund (IMF) team led by mission chief Evan Papageorgiou ended its six-day visit to hold discussions on the impact of Cyclone Ditwah and said it plans to field a mission to resume discussions on economic policies for the next review under the Extended Fund Facility (EFF).
“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 said in a statement.
“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.”
The IMF mission visit was scheduled for fact finding before concluding the fifth EFF review, which is important to release the sixth tranche of the loan. However, the mission had to assess the impacts of the Ditwah devastation before discussions on the fifth review.
However, the global lender’s top official did not comment on the fifth review and the release of the sixth tranche in his statement.
During the visit, 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, Papageorgiou said.
“Discussions focused on the fiscal response to the natural disaster, as well as on the implications for monetary policy and financial sector stability.”
“Our meetings included in-depth exchanges on the authorities’ policy intentions going forward, their financing needs, and how the IMF can best support Sri Lanka’s recovery and reconstruction efforts under the Extended Fund Facility (EFF) arrangement.”
He said 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.
“They are determined to continue strengthening social safety nets to protect the poor and vulnerable, who are disproportionately affected by the cyclone.”
The mission held meetings with the key leaders including the President and Finance Minister Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya, Deputy Minister of Finance and Planning Anil Jayantha Fernando, Central Bank Governor Nandalal Weerasinghe, and Secretary to the Treasury Harshana Suriyapperuma among many others. (Colombo/January 28/2026)