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IMF Aid to Sri Lanka
December 24 , 2025
14 hrs 0 min
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- The IMF approved USD 206 million for Sri Lanka under the Rapid Financing Instrument (RFI).
- The funding is in response to the devastation caused by Cyclone Ditwah.
- The RFI is an IMF emergency lending tool that provides quick, short-term financial assistance for countries facing urgent balance-of-payments (BoP) needs.
- It offers single, rapid disbursement of funds with minimal conditionality and no full-fledged programme requirement.
- There are two windows: a Regular window for domestic instability or external shocks, and a Large Natural Disaster window if disaster damage is ≥20% of GDP.
- Repayment is usually 3¼ to 5 years at standard IMF interest rates, with monitoring focused on macroeconomic stability.
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