Sri Lanka has reached an agreement with the International Monetary Fund (IMF) to continue the Extended Fund Facility (EFF) without any changes after the global lender’s team visited the island nation to assess damage caused by Cyclone Ditwah, the Presidential Media Division (OMD) said.
The IMF mission was expected to conclude the fifth review of the EFF before releasing the sixth tranche. However, the visit was to assess the impact of the disaster, government sources said.
“Emphasising that Sri Lanka is currently moving in the right economic direction despite facing a severe disaster situation, the IMF representatives stated that there would be no changes to the agreement relating to the Extended Fund Facility programme being implemented with Sri Lanka,” the PMD said in a statement.
“They further indicated that discussions relating to the release of the sixth tranche under the programme would resume in March.”
This means the sixth tranche which was to be approved in December 2025 will be further delayed.
The IMF has noted that the Government’s ability to present a supplementary estimate of Rs. 500 billion was made possible by a surplus in the Treasury, describing this as a highly commendable development, the PMD said.
“The President further emphasised that this measure does not in any way signify a departure from proper financial management or fiscal responsibility.”
“The President added that all future Government programmes have been planned in line with this direction and that Sri Lanka expects the continued support of the International Monetary Fund in this regard.”