IMF Chief's Pivotal Visit: Sri Lanka's Recovery Amid Cyclone Aftermath

IMF Managing Director Kristalina Georgieva is visiting Sri Lanka to assess cyclone impacts and discuss recovery strategies. The visit follows a significant IMF bailout that aided Sri Lanka's economic recovery after its first sovereign default. The nation's recent political shifts and cyclone damage underscore the need for ongoing IMF support.

IMF Managing Director Kristalina Georgieva is set to visit Sri Lanka from February 16, marking her first trip since the nation entered an IMF bailout earlier this year.

During her visit, Georgieva will meet with local authorities and stakeholders to evaluate the impacts of Cyclone Ditwah and discuss the IMF's role in aiding Sri Lanka's recovery efforts. This visit comes after the IMF's nearly USD 3 million bailout, which played a crucial role in stabilizing Sri Lanka's economy following its historic sovereign default in April 2022.

Sri Lanka experienced significant public unrest during the economic crisis, leading to political upheaval. The country is now under a new government, which, despite pledging to undo the IMF agreement, is continuing to work with it to address the challenges exacerbated by Cyclone Ditwah. With an estimated recovery cost of USD 4-6 billion, the IMF has already released USD 200 million to support immediate recovery efforts.

(With inputs from agencies.)