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REQUEST FOR PURCHASE UNDER THE RAPIDFINANCING INSTRUMENT—PRESS RELEASE;STAFFREPORT;AND STATEMENT BY THE EXECUTIVEDIRECTOR FORSRI LANKA In the context of theRequest for Purchase Under the Rapid Financing Instrument, thefollowing documents have been released and are included in this package: •APress Releaseincluding a statement by the Chair of the Executive Board. •TheStaff Reportprepared by a staff team of the IMF for the Executive Board’sconsideration onDecember 19, 2025, following discussions that ended onDecember5, 2025, with the officials ofSri Lankaon economic developments andpolicies underpinning the IMF arrangement under theRapid Financing Instrument.Based on information available at the time of these discussions, theStaffReport wascompleted onDecember 11, 2025. •AStatement by the Executive DirectorforSri Lanka. TheIMF’s transparency policy allows for the deletion of market-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports andother documents. Copies of this report are available to the public from International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.org Web:http://www.imf.org International Monetary FundWashington, D.C. IMF Executive Board Approves US$206 Million in EmergencyFinancial Support for Sri Lanka FOR IMMEDIATE RELEASE •The IMF Executive Board approved emergency financing under the Rapid FinancingInstrument (RFI), providing Sri Lanka with immediate access to about US$206 million. •The RFI will help Sri Lanka address the urgent needs arising from the catastrophicCyclone Ditwah and preserve macroeconomic stability. •Given the time needed to assess the impact of the cyclone and evaluate how the IMF-supported program can best support Sri Lanka’s recovery and reconstruction efforts, theFifth Review under the Extended Fund Facility (EFF) is deferred. Discussions will resumein early 2026. Washington, DC–December 19, 2025:The Executive Board of the International MonetaryFund (IMF) approved a disbursement of SDR150.5 million (about US$206 million, equivalentto 26 percent of quota) for Sri Lanka under the Rapid Financing Instrument (RFI). Thisemergency support will help address urgent balance-of-payments and fiscal pressures arisingfrom the catastrophic Cyclone Ditwah, which hit the country on November 28. The Sri Lankan authorities remain committed to their economic reform program supported bythe Extended Fund Facility (EFF). The cyclone hit when the Fifth Review under the EFF wasnearing completion. Given the time needed to assess the economic impact of the cyclone andexamine how IMF-supported program can best support Sri Lanka’s recovery andreconstruction efforts while preserving objectives and policy priorities, the Fifth Review hasbeen deferred. An IMF mission team will visit Sri Lanka in early 2026 to resume discussions. Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Directorand Acting Chair, issued the following statement: Sri Lanka was hit by a catastrophic cyclone, claiming more than 600 lives and affectingmillions more. Flooding and landslides have displaced more than 100,000 people, destroyedcritical infrastructure, and devastated livelihoods across the country. The disaster has createdurgent humanitarian and reconstruction needs, generating significant fiscal pressures andbalance-of-payments needs. The emergency financial support provided by the IMF under theRFI will help address these pressures. “The government responded swiftly with a package of relief measures, supported by strongfiscal overperformance in 2025. The Central Bank of Sri Lanka stands ready to provideliquidity support to the financial system if needed. “While recovery and reconstruction needs will be substantial, the authorities remain committedto maintaining fiscal prudence to safeguard fiscal and debt sustainability. All emergencyspending will be executed in full compliance with the Public Financial Management Act and supported by enhanced monitoring and regular public reporting in line with transparency andaccountability standards. The Central Bank will continue to refrain from monetary financing ofthe budget. “The cyclone struck as Sri Lanka is emerging from a deep economic crisis and the IMF-supported reform program under the EFF is bearing fruit. Sustained adherence to the reformagenda has underpinned a robust economic recovery, price stability, substantial revenue-based fiscal consolidation, and progress rebuilding foreign exchange reserves. Nonetheless,the economy remains vulnerable and GDP has not recovered to its pre-crisis level. “The authorities and IMF team maintain close engagement and will resume discussions at theearliest possible juncture. The IMF stands with the people of Sri Lanka during this difficult timeand will continue to support Sri Lanka’s recovery and reconstruction efforts SRI LANKA REQUE




