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Why in News?
The International Monetary Fund (IMF) has approved USD 206 million in emergency assistance for Sri Lanka under the Rapid Financing Instrument (RFI) following the devastation caused by Cyclone Ditwah.
About the Rapid Financing Instrument (RFI)
The Rapid Financing Instrument (RFI) is an IMF emergency lending facility that provides quick, low-access financial assistance to member countries facing urgent balance-of-payments (BoP) needs, particularly during:
- Natural disasters
- External economic shocks
- Domestic instability or fragility
Aim
- Provide immediate liquidity to countries under sudden BoP pressure
- Prevent severe economic disruption when a full IMF programme is not feasible
- Support macroeconomic stability during short-term crises