IMF approves $206 million in emergency funding for cyclone-hit Sri Lanka

The International Monetary Fund has approved emergency financial assistance of about $206 million for Sri Lanka to help the country cope with the devastating aftermath of Cyclone Ditwah. The IMF Executive Board authorized the disbursement on Friday through its Rapid Financing Instrument to address urgent fiscal pressures and balance-of-payments needs triggered by the natural disaster.

Addressing a Catastrophic Humanitarian Crisis

Cyclone Ditwah struck Sri Lanka on November 17, causing widespread destruction. The official death toll has reached 643, with 183 people still reported missing. IMF Deputy Managing Director Kenji Okamura stated, "The disaster has created urgent humanitarian and reconstruction needs, generating significant fiscal pressures," underscoring the severe economic shock superimposed on the island nation's ongoing recovery from a financial crisis.

Ensuring Transparency in Recovery Spending

The IMF emphasized that all emergency expenditures financed by the loan will be executed in full compliance with Sri Lanka's Public Financial Management Act. Okamura noted the spending would be supported by "enhanced monitoring and regular public reporting" to ensure transparency and accountability, which are critical for a country under an existing IMF bailout program.

Substantial Domestic Funding for Reconstruction

The scale of the required response is immense. According to local media reports, the Sri Lankan parliament has separately approved a supplementary budget estimate of $1.64 billion to restore livelihoods and fund reconstruction efforts across the nation. The combined domestic and international funding highlights the monumental task of rebuilding after the cyclone's devastation.