IMF signals flexibility and support for Sri Lanka after devastating cyclone

The International Monetary Fund (IMF) has expressed deep sympathy and strong support for Sri Lanka following the destructive cyclone that hit the country last week, causing major flooding, loss of life, and widespread damage.

During the IMF’s press briefing on December 4, 2025, IMF Communications Director Julie Kozack responded to several questions about how the Fund plans to assist Sri Lanka during this crisis.

Kozack began by offering heartfelt condolences to the people of Sri Lanka, as well as those in Indonesia, Malaysia, Thailand, and Vietnam, who also suffered from severe flooding and deadly weather events in recent weeks.

She confirmed that the IMF is closely engaging with Sri Lankan authorities and development partners to assess the full humanitarian, social, and economic impact of the cyclone.

Large parts of the country have been flooded, and early indications suggest that economic activity will be negatively affected.

Kozack emphasized that a clearer picture will come after the rapid post-disaster damage assessment, which is currently being carried out by the Sri Lankan government with support from partners.

Regarding concerns about Sri Lanka’s ongoing IMF-supported reform program and debt situation, Kozack noted that:

• The IMF remains committed to supporting Sri Lanka’s recovery, reforms, and long-term resilience under the existing Extended Fund Facility (EFF).
• The IMF and Sri Lankan authorities had already reached a Staff-Level Agreement on the Fifth Review in October, before the cyclone struck.
• IMF staff are actively exploring options to provide additional support for the country as it works through disaster recovery needs.
• A Board meeting is still expected on December 15, 2025 where further decisions may be discussed.

While Kozack did not commit to specific changes in timelines, conditions, or forecasts, she stated clearly that the IMF is reviewing all options and will share more information once the damage assessment is complete and the economic needs are better understood.