IMF postpones SL’s Fifth Review to assess emergency funding

Monday, 8 December 2025 04:56 - - {{hitsCtrl.values.hits}}

President and Finance Minister Anura Kumara Dissanayake making a special statement in Parliament last week

IMF suggests pushing EFF program Fifth Review to early 2026 from 15 December this year
Review would have unlocked about $ 347 m, but now on hold
Govt. requests $ 200 m additional funding and increase to Fifth-Review tranche, both requiring more time to review
President Anura Kumara Dissanayake says Govt. has consented to the move

The International Monetary Fund (IMF) yesterday confirmed that Sri Lanka’s request for $ 200 million in emergency financing now takes priority over the Fifth Review of the Extended Fund Facility (EFF), which will be deferred to early next year.

The Fund also signalled that the next tranche—previously set at about $ 347 million—could be increased, subject to further evaluation.

“In light of the Sri Lankan authorities’ request for emergency financing, IMF Board consideration of the Rapid Financing Instrument (RFI) request is the priority at the current juncture,” an IMF spokesperson said.

The Fund added that an IMF team will visit Sri Lanka in early 2026 to resume discussions on the Fifth Review and that support under the RFI will be provided in addition to the EFF.

Last week, in the immediate aftermath of Cyclone Ditwah, the IMF said the Fifth Review could be concluded within two weeks. However, Sri Lanka has since asked both to raise the tranche value and to access an additional $ 200 million, requiring more time for the Board to assess the proposals.

President Anura Kumara Dissanayake told Parliament on Friday that the Government is temporarily stepping back from the staff-level agreement reached last month to prioritise the emergency funding request.

“It had been planned to present this to their Executive Board on 15 December. But the situation has now changed. We are moving away from the staff-level agreement previously reached,” he said, adding that the IMF had proposed shifting the Board discussion to January or February.

Sri Lanka had been expecting the next EFF disbursement of about $ 347 million in December, with the President noting this reflected the value in Special Drawing Rights. He confirmed the Government is now seeking to expand that tranche. “To increase it, we need both negotiations and time,” he said.

Given the urgent foreign exchange requirement following Cyclone Ditwah, Dissanayake said the Government has turned to the Fund for immediate assistance. “To meet our immediate need for foreign exchange, we have requested relief of $ 200 million from the IMF. We believe they will respond positively to this.”