SRI LANKA REQUEST FOR PURCHASE UNDER THE RAPIDFINANCING INSTRUMENT—PRESS RELEASE;STAFF December 2025 In the context of theRequest for Purchase Under the Rapid Financing Instrument, the •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. •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 and International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201 International Monetary Fund 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, the 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). This 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 and 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 and “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 provide “While recovery and reconstruction needs will be substantial, the authorities remain committedto maintaining fiscal prudence to safeguard fiscal and debt sustainability. All emergency supported by enhanced monitoring and regular public reporting in line with transparency andaccountability standards. The Central Bank will continue to refrain from monetary financing of “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- “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 time SRI LANKA REQUEST FOR PURCHASE UNDER THE RAPID FINANCING December 11, 2025 EXECUTIVE SUMMARY Context. Sri Lanka was hit by catastrophic Cyclone Ditwah on November 28, claimingmore than 600 lives as of December 6 and affecting millions more. Severe flooding andlandslides displaced over 100,000 people and caused extensive destruction of houses,roads, bridges, rail lines, buildings including schools and hospitals, and agricultural landnationwide. The natural disaster creates urgent humanitarian and reconstruction needs, Request for Fund support. The cyclone struck as the Fifth Review under the EFF wasnearing completion, and the scale of the disaster will most likely require adjustment toprogram parameters. The adjustment will be anchored by an impact assessment and acomprehensive reform package. Given the urgency of addressing the disaster and the SRI LANKA Approved BySanjaya Panth (APD)and Martin Čihák(SPR) Discussions took place virtually during December 1–5, 2025. Themission met with Central Bank of Sri Lanka Governor Weerasinghe,Secretary to the Treasury Suriyapperuma, Senior Economic Advisorto the President Hulangamuwa, and other senior officials. Themission team comprised E. Papageorgiou (Mission Chief),D. Prihardini, U. Wiriadinata (all APD), S. Kwalingana (SPR), O. Aydin(FAD), D. Palermo (MCM), M. Woldemichael (resid




