Sri Lanka’s government has confirmed it will continue along the same economic policy framework under the International Monetary Fund’s Extended Fund Facility (EFF), with no changes to the existing agreement, following discussions with a visiting IMF delegation.
The IMF team, which arrived in the country on January 22, met President Anura Kumara Dissanayake today (28) at the Presidential Secretariat after completing a nationwide tour to assess the impact of Cyclone Ditwah. During their visit, the delegation met affected communities and observed the widespread damage to infrastructure and livelihoods.
IMF representatives expressed concern over the hardships faced by the public at a time when the country’s economy had begun to show signs of recovery. At the same time, they praised the government’s response efforts, including emergency relief, infrastructure repairs and measures aimed at restoring daily life.
The delegation also highlighted what it described as strong fiscal discipline by the government over the past year, noting that a Treasury surplus enabled the presentation of a supplementary estimate of Rs. 500 billion. According to the President’s Media Division (PMD), the IMF viewed this as a positive signal of financial management.
Despite the scale of the disaster, the IMF confirmed that Sri Lanka would remain bound by the existing terms of the Extended Fund Facility programme. Discussions on the release of the sixth tranche of funding are expected to resume in March.
President Dissanayake stated that rural and low-income communities had borne the brunt of the cyclone’s impact, particularly through damage to livelihoods and local infrastructure. He said the Rs. 500 billion allocation was intended to support income generation and protect vulnerable communities, while maintaining fiscal responsibility.
He added that the government’s focus remains on ensuring that macroeconomic improvements translate into tangible benefits for ordinary citizens, especially those affected by years of economic hardship and recent crises.
The meeting was attended by senior government officials, including Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, Finance Ministry Secretary Dr. Harshana Suriyapperuma, Central Bank Governor Dr. Nandalal Weerasinghe and Presidential Economic Adviser Duminda Hulangamuwa.
The IMF delegation was led by Asia and Pacific Department Director Krishna Srinivasan, alongside Deputy Director Sanjaya Panth, Mission Chief Evan Papageorgiou and Resident Representative Martha Woldemichael.
