Washington, Jan 16 (NationPress) The International Monetary Fund (IMF) has announced that a fact-finding mission will travel to Sri Lanka from January 22 to 28 to evaluate the devastation caused by Cyclone Ditwah and deliberate on the consequences for the nation’s ongoing Extended Fund Facility (EFF) program.

Julie Kozack, the Director of the IMF’s Communications Department, stated during an IMF press briefing, “A fact-finding mission will visit Sri Lanka from January 22nd to 28th.”

She further explained, “The purpose of the mission is to solidify our understanding of the extent and scale of the damage inflicted by the cyclone.”

Kozack noted that the IMF team would “engage with the authorities regarding their policy intentions and the ramifications of the cyclone’s impact on the EFF program.”

She highlighted the trip’s limited scope, saying, “I want to emphasize that this is a fact-finding mission aimed at enhancing our understanding of the on-ground situation and how we can effectively assist Sri Lanka moving forward.”

On December 19, the IMF Executive Board sanctioned emergency financing for Sri Lanka under the Rapid Financing Instrument (RFI), which provided the country with immediate access to approximately U.S. $206 million. Kozack explained that the RFI is targeted at aiding Sri Lanka in addressing urgent needs arising from the devastating Cyclone Ditwah, as the nation strives to uphold macroeconomic stability.

When asked if the cyclone could alter program objectives, including electricity pricing, Kozack replied, “There is a commitment under the program to ensure cost recovery in the utility sector.”

She elaborated on the significance of this goal, stating, “This is vital for maintaining fiscal sustainability in Sri Lanka, preventing financial losses for the utility company.”

Kozack affirmed that specifics would be addressed by the visiting team. “Our fact-finding team will certainly discuss with the authorities what is precisely needed to support Sri Lanka as it moves forward,” she said.

She concluded, “Our aim is to assist Sri Lanka in recovering from this catastrophic hurricane and provide support in alignment with our mandate to help maintain macroeconomic stability.”

Sri Lanka has been navigating an IMF-supported reform program following a severe balance-of-payments and debt crisis, which led the country to default earlier in the decade. Natural disasters like Cyclone Ditwah can complicate recovery efforts by exacerbating fiscal pressures and escalating immediate spending requirements.