Feb 05, 2021

SL settles US$400 m currency swap with India Featured

Sri Lanka has settled its Swap facility with the Reserve Bank of India, the Central Bank of Sri Lanka (CBSL) said today.

CBSL said there was no special request from India for a premature settlement as erroneously reported by certain media outlets.

“The CBSL settled its Swap facility with Reserve Bank of India as scheduled. There was no special request from India for a premature settlement as erroneously reported by certain media outlets. Discussions on future collaboration continue,” CBSL tweeted.

The Reserve Bank of India had in July last year signed documents for a US$ 400 million currency swap facility to Sri Lanka till November 2022.

Last year President Gotabaya Rajapaksa had asked Indian Prime Minister Narendra Modi for USD 1.1 billion as a special swap facility to help Sri Lanka deal with foreign exchange issues.

During a telephone discussion between Rajapaksa and Modi the Sri Lankan President had requested the Government of India to provide USD 1.1 billion as a special swap facility to top up USD 400 million under the SAARC facility, saying it would enormously help Sri Lanka in dealing with its foreign exchange issues.

In turn, the Indian Premier has assured that he is personally committed to help Sri Lanka.

India has had a Framework on Currency Swap Arrangement for SAARC Member countries since 2012.

The facility is available to all SAARC member countries with a floor of USD 100 million and ceiling of USD 400 million within overall limit of USD 2 billion.
(colombogazette.com)
(Except for the headline, this story, originally published by colombogazette.com has not been edited by SLM staff)

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