December, 5, 2025
The International Monetary Fund (IMF) has expressed deep condolences to Sri Lanka following the devastating cyclone and assured that it is closely engaging with authorities to assess the full humanitarian and economic impact.
Responding to a question from Ada Derana at the IMF’s regular press briefing on December 4, Communications Director Julie Kozack said the Fund is “closely engaging” with the government, development partners, and counterparts to evaluate the extensive damage caused by flooding across the country.
Kozack noted that economic activity is expected to be adversely affected, adding that a clearer picture will emerge once Sri Lanka’s rapid post-disaster damage assessment, currently underway with assistance from partners, is completed.
She reaffirmed the IMF’s commitment to supporting Sri Lanka’s recovery under the Extended Fund Facility (EFF), highlighting that the Staff–Level Agreement on the Fifth Review, reached in October prior to the cyclone, remains on track. The IMF Board meeting is still scheduled for December 15.
Kozack also revealed that IMF staff are exploring “options to further support Sri Lanka” in the wake of the disaster, with additional details to be shared once economic needs and damage assessments advance.
Ada Derana: How can the IMF give special consideration to Sri Lanka in the current devastating situation? Is there any possibility of easing the conditions of Sri Lanka's IMF program? And my last question, do you expect any revisions to the current growth forecast for Sri Lanka's economy? Thank you.
MS. KOZACK: Thank you. Are there any other questions on Sri Lanka? Okay, let me talk about Sri Lanka a little bit. And I really want to start by saying that, you know, by conveying our deepest sympathies to the people of Sri Lanka for the effects of the devastating cyclone. Our hearts go out to the people of Sri Lanka, and we mourn the loss of life that has taken place. And I want to extend those condolences to the people of Indonesia, Malaysia, Thailand, and Vietnam as well also in Asia, where there have been very significant flooding and often loss of life. So our deepest condolences to the people of all of those countries.
On Sri Lanka, on the specific questions, what I can say is that, you know, we're closely engaging with the Sri Lankan authorities, development partners, and other counterparts to assess the humanitarian, social, and economic toll of the cyclone. We understand that large parts of Sri Lanka have been affected by the floods, and on that basis, we do expect economic activity to be adversely affected, in addition, of course, to the significant human toll that the cyclone has taken. We will be able to -- we will have a better assessment of the economic situation once the rapid post-disaster damage assessment is completed. And of course, that's being completed by the Sri Lankan authorities in conjunction with other partners.
With respect to the IMF, we are continuing to support Sri Lanka's recovery, reform, and resilience under the EFF arrangement. Staff and the Sri Lankan authorities reached a Staff–Level Agreement on the Fifth Review back in October, before the cyclone. And right now, Staff is looking into options to further support Sri Lanka in the recovery process. We still expect to have a Board meeting on December 15th. But as I said, we are looking into options to further support Sri Lanka, and we will be providing additional details as the assessment of economic needs and damages moves forward, and as we have more information that can inform our own thinking around the options for how we can further support Sri Lanka.
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