Deputy Minister explains low interest, relief measures under RFI

Jayantha Fernando said the International Monetary Fund's (IMF) approval of $ 206 million under the Rapid Financing Instrument (RFI) on Friday provides the country with critical and low-cost emergency funding at a time when the country is focused on recovery and stabilisation.

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In a video message released by the Finance Ministry on Saturday, he expressed appreciation to the IMF and its Mission Chief for Sri Lanka Evan Papageorgiou for the swift assistance, stressing that the facility is designed to minimise the impact of shocks on the balance of payments (BOP) during emergencies.

"We appreciate the immediate relief assistance extended by the IMF," Dr. Fernando said, noting that the RFI is a standard instrument available to IMF member countries facing urgent external financing needs.

Dr. Fernando asserted that the IMF-backed RFI, together with domestic relief measures, is intended to protect recovery momentum and prevent misinformation from undermining confidence at a critical juncture for the economy.

The Deputy Minister pointed out that the interest rate attached to the RFI is exceptionally low and transparent. He explained that the rate is linked to the IMF's Special Drawing Rights (SDR) framework, which is reviewed weekly.