IMF targets should be revised after cyclone impact, says Sri Lanka central bank

Alsharq Tribune-Ahmed Essam 

Sri Lanka should seek revisions to the targets set under its Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF), Central Bank Governor Nandalal Weerasinghe said on Monday night.

During a local television interview, Weerasinghe said discussions on revising the program's benchmarks are expected later this month when an IMF team arrives in Colombo for the fifth review of the 48-month EFF.

The mission is scheduled to assess Sri Lanka's progress and hold consultations with government authorities, he added.

The governor said it has become necessary to adjust the targets due to unexpected shocks, particularly Cyclone Ditwah, which caused extensive damage to infrastructure and severely disrupted livelihoods across several districts.

He said the annual budget had been formulated before the cyclone struck, and its impact, along with other emerging challenges, must be taken into account during the upcoming review.

The IMF approved the 48-month EFF in March 2023, providing Sri Lanka with about 3 billion U.S. dollars to support its economic reform program and recovery efforts.