Houses damaged by the overflowing Mahaweli River following Cyclone Ditwah, in Kandy, Sri Lanka on December 4, 2025.
| Photo Credit: Reuters
The International Monetary Fund (IMF) is exploring ways to support Sri Lanka in its recovery process following cyclone Ditwah, which has caused widespread destruction in the island nation and left more than 450 dead.
At a press briefing on Thursday (December 4, 2025), IMF spokesperson Julie Kozack said the Washington-based global lender is “continuing to support Sri Lanka’s recovery, reform, and resilience under the Extended Fund Facility (EFF) arrangement”. Ms. Kozack conveyed her deepest sympathies to those affected by the cyclone, and said the IMF is “closely engaging” with the Sri Lankan authorities, development partners, and other counterparts to assess its humanitarian-, social-, and economic impact.
“Staff and the Sri Lankan authorities reached an agreement on the fifth review back in October, before the cyclone. And at present, staff is looking into options to further support Sri Lanka in the recovery process,” Ms. Kozack said.
Sri Lanka is grappling with widespread flooding, landslips and severe infrastructural collapse triggered by cyclone Ditwah, which left several districts isolated and severely straining the country’s disaster-response capacity.
Ms. Kozack said an IMF board is “still expected” to meet on December 15 to discuss the next review of Sri Lanka’s EFF programme. Sri Lanka is expected to draw its sixth tranche of the nearly $3 billion IMF bailout, and the nation’s authorities are hopeful of its early release.
The 48-month extended fund-facility deal with the IMF in March 2023 carried hard reforms to Sri Lanka’s welfare-based governance. It was signed after Sri Lanka plunged into an unprecedented economic meltdown with its first-ever sovereign default.
On the IMF’s support to the island nation following the devastating cyclone, Ms. Kozack said, “We will be providing additional details as the assessment of economic needs and damages moves forward, and as we have more information that can inform our own thinking around the options for how we can further support Sri Lanka.”The island nation is in the process of estimating the cost of cyclone Ditwah devastation. According to initial estimates, $6-7 billion would be required as the loss would be around 3-5% of the Gross Domestic Product (GDP).
According to a report by Sri Lanka’s Disaster Management Centre early on Friday (December 5, 2025), 486 people have been killed and 341 are missing owing to catastrophic floods and landslips caused by extreme weather conditions since November 16. Since the cyclone, calls for concessions from the IMF have come to the fore from both the government and the opposition.
Published – December 05, 2025 04:49 pm IST
