ASIATODAY.ID, COLOMBO — Sri Lanka is entering a post-disaster recovery phase following Cyclone Ditwah, with reconstruction efforts gaining momentum under continued support from the International Monetary Fund (IMF).
An IMF staff team led by Evan Papageorgiou concluded a visit to Colombo from January 22–28 to assess the cyclone’s economic and social impact and to discuss the policy framework for recovery.
End-of-mission statements reflect preliminary staff views and do not represent the IMF Executive Board. This mission will not result in a Board discussion.
During the visit, the IMF team engaged with government authorities and key stakeholders to evaluate infrastructure damage, livelihood losses, and rising social vulnerabilities caused by the cyclone.
Discussions focused on a measured fiscal response to the disaster, alongside potential implications for monetary policy and financial sector stability.
The talks also reviewed Sri Lanka’s policy direction going forward, its financing needs, and how IMF support under the Extended Fund Facility (EFF) can best underpin recovery and reconstruction while preserving macroeconomic stability.
“As Sri Lanka begins rebuilding, the authorities have reaffirmed their commitment to safeguarding hard-won gains in fiscal discipline and debt sustainability,” Papageorgiou said on January 28, 2026.
“This includes strengthening public investment management, reprioritizing projects, and ensuring that all spending is carried out transparently and in line with the Public Financial Management Act.”
The IMF underscored the importance of strengthening social safety nets to protect the poor and vulnerable, who have been disproportionately affected by the cyclone.
Looking ahead, the IMF plans to field another mission at the earliest opportunity to resume discussions on economic policies for the next review under the EFF.
The Fund reiterated its solidarity with Sri Lanka and its readiness to support efforts to safeguard macroeconomic stability, build resilience, and promote sustainable growth.
During the mission, the IMF team met with President and Finance Minister Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, Labor Minister and Deputy Finance Minister Prof. Anil Jayantha Fernando, Central Bank Governor Dr. P. Nandalal Weerasinghe, Treasury Secretary Dr. Harshana Suriyapperuma, Senior Economic Advisor to the President Duminda Hulangamuwa, and other senior officials. The mission also engaged with representatives from the private sector, civil society, and development partners. (AT Network)
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