The IMF has approved $206 million in emergency financing for Sri Lanka after Cyclone Ditwah. The funding will support urgent recovery and humanitarian needs. The disaster caused severe damage across the country.
The cyclone killed more than 640 people and displaced thousands nationwide. Moreover, floods and landslides affected over 10 percent of the population. As a result, the country faces major fiscal and external financing pressures.
The IMF said the aid comes through its Rapid Financing Instrument. Therefore, it will help ease balance-of-payments stress and budget strain. IMF officials stressed the need for quick support during recovery.
Meanwhile, Sri Lanka announced $1.6 billion in additional spending for reconstruction next year. Earlier, the government redirected $120 million from a World Bank project. Separately, it secured a $200 million loan from the Asian Development Bank.
Read more: Sri Lanka Landslide Crisis Worsens After Cyclone Ditwah
Despite the disaster, Sri Lanka remains committed to its IMF-backed reform program. However, the IMF deferred the fifth review of the $3 billion facility. Talks will resume in early 2026 after assessing economic damage.