The International Monetary Fund (IMF) will resume discussions on completing the Fifth Review of Sri Lanka’s Extended Fund Facility (EFF) in January, following its decision to prioritise the country’s request for Rapid Financing Instrument (RFI) support, the IMF announced.
Sri Lanka was scheduled to receive approximately USD 358 million upon successful completion of the Fifth Review, which was originally due to be taken up by the IMF Executive Board on December 15. The nation has already passed a relatively cautious 2026 Budget, a key prerequisite under the IMF programme.
However, in the aftermath of the severe destruction caused by Cyclone Ditwah, the government has sought USD 200 million in emergency assistance under the RFI.
“In light of the Sri Lankan authorities’ request for emergency financing, IMF Board consideration of the Rapid Financing Instrument (RFI) request is the priority at the current juncture,” an IMF spokesman said on Sunday.
The spokesman further confirmed that an IMF team will visit Sri Lanka in early 2026 to restart discussions on the Fifth Review, adding that RFI support will be provided in addition to the EFF facility.
Sri Lanka has broadly adhered to the policy commitments under its USD 3 billion IMF programme, introduced following the country’s 2022 economic collapse and sovereign debt default.
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