Foreign agencies have pledged US$350 million to support Sri Lanka’s cyclone recovery efforts, with further contributions anticipated, according to Deputy Treasury Secretary A.K. Seneviratne. Speaking to the Parliament’s Committee on Public Finance shortly before the approval of a Rs. 500 billion supplementary estimate, Seneviratne highlighted ongoing foreign exchange challenges and emphasized that donor agencies have committed funds in addition to the original 2025 budget.
“We will receive more support in the future. In addition, the re-building fund is also securing extra resources, which are being used to finance recovery initiatives,” Seneviratne said.
The International Monetary Fund (IMF) recently approved US$206 million in assistance through its Rapid Financing Instrument (RFI). According to the IMF, this amount represents approximately 28 percent of the total urgent balance of payments need caused by the cyclone. The IMF also noted that other development partners, including the World Bank and the Asian Development Bank, are actively exploring options to provide rapid assistance, such as accelerating previously committed financing and mobilizing new funding, including budget support.
The World Bank has activated US$120 million in emergency components within new programs to assist Sri Lanka. Other development partners continue to provide rescue assistance, emergency relief, and financial support to aid recovery efforts.
The IMF report stated, “With the proposed RFI and its catalytic effect, the decline in reserves is expected to be contained at US$115 million, thereby allowing the authorities to maintain the path of reserve accumulation and strengthening market confidence and external sustainability.”
President Anura Kumara Dissanayake has indicated that approximately US$500 million in additional financing is expected to support the 2026 budget.
