Tue Dec 09 18:23:16 UTC 2025: ## Sri Lanka Grapples with Cyclone Aftermath, Faces Pressure to Renegotiate IMF Deal

COLOMBO – December 9, 2025 – As Sri Lanka continues to reel from the devastating impact of Cyclone Ditwah, which claimed the lives of at least 638 people and affected millions more, calls are growing louder for the government to renegotiate its ongoing International Monetary Fund (IMF) program. The program, implemented following Sri Lanka’s 2022 financial crisis, is facing increasing criticism for imposing austerity measures that critics say are exacerbating the hardships of a population already struggling to recover.

The cyclone, which brought torrential rains, unprecedented flooding, and multiple landslides across the island nation in late November, has dealt a significant blow to Sri Lanka’s tentative recovery. President Anura Kumara Dissanayake visited affected areas on December 8th, acknowledging the immense scale of the disaster.

Opposition Leader Sajith Premadasa has urged the Dissanayake government to engage in immediate talks with the IMF to suspend or amend conditions that are further burdening the population. Over 70 civil society groups and activists echoed this sentiment, issuing a statement on December 8th demanding an urgent revision of Sri Lanka’s debt restructuring agreement, a massive debt reduction, and a halt on subsidy removals. They argue that the IMF’s control over government spending is hindering the ability to respond to the humanitarian crisis and invest in climate change adaptation.

Former President of the Maldives, Mohamed Nasheed, highlighted that the climate calamity makes it “impossible” for Sri Lanka to adhere to the IMF program. He noted that the original Debt Sustainability Analysis (DSA) failed to account for climate shocks, a situation mirrored by other climate-vulnerable, debt-distressed nations.

Despite the mounting pressure, there are currently no indications that the Sri Lankan government plans to deviate from the IMF program. In fact, they have sought a $200 million Rapid Financing Instrument from the Fund, which has confirmed that the emergency financing request will take priority over the scheduled fifth review of the Extended Fund Facility (EFF).

Meanwhile, activists are demanding that the government prioritize equitable relief, especially for marginalized communities in regions heavily impacted by landslides. They are advocating for universal social protection schemes and urgent negotiations with the IMF to cancel debt repayment and reverse austerity policies.

President Dissanayake acknowledged the immense challenge facing Sri Lanka, stating that the damage may exceed any natural disaster the island has previously endured. The question remains whether he will navigate a new economic path for Sri Lanka or remain constrained by the IMF program as the nation faces a daunting recovery process.

Read More