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Deputy Minister Outlines Low-Cost RFI Funding and Relief Measures
22 Dec, 2025
Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando states Sri Lanka’s approval of USD 206 million under the IMF’s Rapid Financing Instrument (RFI) provides critical, low-cost emergency support to help ease balance of payments pressures during the recovery phase.
In a video message issued by the Finance Ministry, he said the RFI is a standard IMF facility designed to assist member countries facing urgent external financing needs, and thanked the IMF and its Sri Lanka Mission Chief Evan Papageorgiou for the swift approval.
Dr. Fernando noted that the RFI carries a relatively low and transparent interest rate linked to the IMF’s Special Drawing Rights (SDR). For the week of December 15–21, the rate stood at about 3.27%–3.28%, significantly below market borrowing costs. He said surcharges are not immediate and apply only after a specified period, depending on the level of access relative to a country’s IMF quota. Repayment periods typically range from three to five years.
He said the decision to seek RFI financing was made on the recommendation of the Public Finance Department as part of broader efforts to stabilise and rebuild the economy.
The Deputy Minister also highlighted domestic relief measures introduced alongside IMF support. Under a Central Bank of Sri Lanka (CBSL) circular, licensed banks have agreed to grant affected businesses three- to six-month extensions on existing loan repayments without additional interest or fees, to support firms disrupted by flooding and infrastructure damage.
He added that banks have also agreed on a common framework to provide concessional, low-interest loans, with CBSL-issued guidelines to ensure uniform and timely implementation across the banking system.
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