International Monetary Fund, IMF has approved an emergency funding of 206 million dollar under its rapid finance instrument to help Sri Lanka address the urgent needs arising from the catastrophic Cyclone Ditwah and preserve macroeconomic stability. The cyclone caused widespread destruction in the island nation and left over 643 people dead.
In a statement, the IMF said that the disaster has created urgent humanitarian and reconstruction needs, generating significant fiscal pressures and balance-of-payments needs. The statement said that the emergency financial support provided by the IMF under the rapid finance instrument will help address these pressures. The IMF added that the cyclone devastation hit when the Fifth Review of Sri Lanka’s USD 2.9 billion bailout was nearing completion.
