IMF Rapid Financing Instrument: USD 206 Million for Sri Lanka
Why in the news
The International Monetary Fund (IMF) cleared USD 206 million of emergency support for Sri Lanka through the Rapid Financing Instrument (RFI), after Cyclone Ditwah caused widespread damage.
Key facts
- Lender: International Monetary Fund.
- Amount: USD 206 million.
- Recipient: Sri Lanka, hit by Cyclone Ditwah.
- Facility: Rapid Financing Instrument (RFI), an emergency lending window.
About the RFI
- Provides quick, low-access financial assistance to members facing urgent balance-of-payments (BoP) needs.
- Typical triggers: natural disasters, external economic shocks, domestic instability or fragility.
Aim
- Supply immediate liquidity to countries under sudden BoP stress.
- Avert severe economic disruption when a full IMF programme is not workable.
- Support macroeconomic stability during short-term crises.
Exam angle
- Facility name and expansion: Rapid Financing Instrument.
- Country and cause: Sri Lanka, Cyclone Ditwah.
- Related term: balance of payments (BoP) need.