AMN/ WEB DESK
The Reserve Bank of India has signed necessary documents for extending a USD 400 million currency swap facility with the Central Bank of Sri Lanka. This currency swap arrangement will remain available till November 2022.
The agreement followed talks between the two sides over past weeks to find ways of enhancing economic cooperation between the two neighbours. The Indian High Commission in Colombo has remained closely engaged in fruitful bilateral cooperation with Sri Lanka on all matters of mutual interest. Both countries held technical discussions on rescheduling of bilateral debt repayment by Sri Lanka this week.
It may be recalled that both sides had discussed the ongoing COVID-19 pandemic and its likely health and economic impacts during Prime Minister Narendra Modi’s telephone conversations with Sri Lankan President Gotabaya Rajapaksa on 23rd of May and Prime Minister Mahinda Rajapaksa on 27th of May.
Prime Minister Modi had assured that India would continue to provide all possible support to Sri Lanka for mitigating the effects of the pandemic. Sri Lanka has around USD one billion of loan commitment from India and has requested to reschedule the payment due to the ongoing financial crisis and COVID situation.