RBI signs US$400 million currency swap facility with Sri Lanka
Currency swap arrangement between India and Sri Lanka will remain available till November 2022
Giving a major boost to India’s neighbourhood first policy, “the Reserve Bank of India has signed an agreement for extending a US$ 400 million currency swap facility to the Central Bank of Sri Lanka,” the Indian High Commission said in a press note on Saturday.
It further said the currency swap arrangement to remain available till November 2022, will enhance Sri Lanka’s foreign reserves as well as financial stability of the island country, which has been badly hit by the Covid-19 pandemic.
On July 14, Deputy High Commissioner Vinod K Jacob had met and discussed the currency swap arrangement with the Governor of the Central Bank of Sri Lanka Prof W D Lakshman.
In April, Sri Lanka said it was set to enter into an agreement with the RBI for a currency swap worth $400 million under the South Asian Association for Regional Cooperation (SAARC) framework.
The Indian High Commission stated that it has remained closely engaged in fruitful bilateral cooperation with Sri Lanka on all matters of mutual interest. “On 22 July, High Commission facilitated constructive technical discussions on rescheduling of bilateral debt repayment by Sri Lanka,” the High Commission said
These positive developments illustrate active implementation of the leadership-level commitment to work together for addressing the challenges arising from the COVID-19 pandemic, and further the mutually beneficial India-Sri Lanka partnership, including in the economic domain, the High Commission added.