The International Monetary Fund (IMF) says Sri Lanka’s Extended Fund Facility (EFF) program is not on hold, clarifying that only the fifth review has been postponed to allow for a reassessment of economic conditions following the impact of the recent cyclone.

IMF Mission Chief for Sri Lanka Evan Papageorgiou made the remarks at the conclusion of the IMF staff visit to Sri Lanka today (28).

He said the discussions focused on assessing the economic impact of the cyclone, understanding the authorities’ policy intentions on fiscal and monetary matters, and examining how the IMF-supported program should accommodate emerging uncertainties.

Papageorgiou noted that the fundamental structure of the EFF program remains unchanged, emphasizing that Sri Lanka’s performance under the program had been strong prior to the natural disaster.

“The program itself stands. The five pillars of the program remain the same,” he said, while acknowledging that the cyclone has created additional uncertainties which may affect certain quantitative performance criteria.

He explained that any potential adjustments to targets would need to be discussed with the authorities during the next round of engagements, adding that the IMF mission is expected to return to Sri Lanka in the coming weeks.

Responding to a question on whether the EFF had been placed on hold following the disbursement of Rapid Financing Instrument (RFI) support, Papageorgiou rejected the claim.

“There is no such thing as the program being on hold,” he said, explaining that the completion of the fifth review was postponed specifically to allow time to revisit assumptions affected by the cyclone.

He further confirmed that the next formal milestone under the program will be the fifth review, while noting that the possibility of combining future reviews remains a matter for discussion.